Binance Coin (BNB) is up more than 140% year to date and is now deviating from bitcoin’s price trend. Interestingly, this is a feat not commonly observed in the budding cryptocurrency markets. It is to be noted that BNB is the virtual currency that can be exchanged for transaction fees on the Binance exchange.
At the time of reporting, BNB is ranked eighth in terms of market cap, as per CoinMarketCap. In fact, BNB is the only crypto out of the top ten to post a yearly gain against the dollar. Interestingly, the next closest performer, TRX is printing a -44% annual loss.
As can be seen on coinmarketcap charts, the performances of the top ten cryptocurrencies by market capitalization tend to align strongly with one another except for stablecoin Tether (USDT). This is because it is designed to hold a consistent value.
Nonetheless, this connection began to weaken for BNB/USD as 2019 began. This fact is made evident by BNB/USD’s performance line, which has been differing considerably from the other big name cryptocurrencies and digital assets. Such a pattern is effectively making BNB the most bullish notable outlier of the group.
Without a doubt, BNB now seems to be charting a track of its own as it continues to appreciably outperform bitcoin, which is still ranked first by market cap.
Furthermore, BNB/USD’s year-to-date performance dwarfs that of bitcoin’s, boasting a 141.7% increase. As more traders pile in on prospective build up or major price movements, an increase in Binance exchange activity could become more present. This, in turn, is increasing the demand for BNB as a utility token and driving up its price.
Given the highly correlated and unripe nature of the digital asset and cryptocurrency market, it’s doubtful for BNB to chart its own distinguishing trend for an extended period of time, but only time will tell.