BNB token has a market capital of $50 billion and has rallied 66% ever since the crypto market crash. But what’s the secret to the altcoin’s incredible recovery?
BNB has rebounded 66% from its $183 mid-June low. This move consolidates BNB’s position as third-ranked cryptocurrency after stablecoin market cap removals and reflects a $50 trillion market capitalization. After a 73% correction in November 2021, BNB has outperformed other altcoin markets capitalization.
In July 2021, altcoin market capitalization was 21% higher at $740 million. Bitcoin ( Bitcoin) & Ether ( Ethereum) were already market leaders. However, the dispute over the third spot was not settled.
Despite being the third most popular cryptocurrency, BNB’s market capital was \$47 billion. Cardano ( ADA ) had a valuation of $46 billion. No altcoin can match its dominance at the moment and the gap has grown to more than $30 Billion.
Smart contracts are the basis of all decentralized apps (DApps), which include decentralized finance, gaming and marketplaces. What other success metrics exist than the number of active users who use addresses as a proxy for their transactions?
SimilarWeb data shows that Binance received 300 million visitors to its website in 30 days, compared to 121 million from Coinbase. If FTX Token ( ) has a \$5 billion market capital, BNB should be five-fold larger from Binance’s utility offer.
Analysts should therefore discount almost half of BNB’s market capitalization of $50 billion when comparing smart contract platforms to valuations. BNB token is fairly priced because of its third-place ranking (when stablecoins have been removed), its leadership in DApps users and third place status in terms TVL deposits.
