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Binance’s Native Coin BNB token Entered Top 5-Will it Form new ATH?

Highlights

    The market capitalization of BNB just crossed $4 billion, due to which it made its way into the top 5.

    BNB is estimated to be undervalued as per a report as it has a strong correlation with its native exchange.

BNB in the Top 5 ranking list

Binance’s native coin, BNB has secured its place among the top 5 cryptocurrencies. Leaving behind tokens like Bitcoin cash, Polkadot, BNB is all set to touch $30 anytime from now. The digital asset is priced at $28.79 with a 24 hour gain of 1.1 percent. 

Previously, a couple of days before, BNB almost touched $30, but unfortunately slipped down to $26.35 the same day. If the monthly average is considered, BNB has jumped almost 30 percent and 10 percent in the past seven days. Therefore, if the same jump continues, then very soon, BNB can surpass its previous ATH of $39.68 also.

BNB coin Might be Undervalued

According to a report of an independent third-party data analytics organization tokeninsights.com, BNB token is undervalued as per the Quarter 2 Exchange Token Valuation Report

As per the analysis, most of the exchanges have rolled out their own native tokens which are supposed to directly relate to the performance of their platform. The report states,

“We have found that the transaction(volume) on exchanges is highly correlated to the market, directly affecting the(revenue) of each specific exchange”

Based on the findings of the report, it claims that the Binance Coin is undervalued. As Binance Coin(BNB) has a strong positive correlation with the majority of exchange platforms in Q2 2020. On the contrary, the report also states that the 30-day correlation with other exchange tokens has dropped significantly.

Overall, Binance Coin(BNB) has a major jump in the market capitalization which made it enter the top 5 cryptocurrency ranking list. On the other hand, BNB token is considered as undervalued as per the report. If the report findings are valid, then Binance’s BNB token should pump to surpass the current ATH.

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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