Another Bear Market - Another Victory For BNB!
It’s Not The First Time
For those who were around and paying attention during the previous bear market, you would have noted that BNB outperformed BTC. That’s right, an altcoin performed better in a bear market than Bitcoin! I am sure that you can appreciate how truly significant this is. One of the most important factors contributing to this performance has to be the utility of BNB. Unlike many other tokens, BNB offers a plethora of use cases, mostly in the form of staking. This is a dynamic that has simply blossomed over the past few years and continues to create a strong demand for BNB. As we find ourselves in yet another bear market, we simultaneously find that BNB is once again outperforming Bitcoin!
Is This Becoming A Habit?
One can’t help but wonder if this is going to become a predictable occurrence going forward. BNB has only experienced two bear markets and has outperformed BTC in both. Given, that the current bear market is still likely to take a final step lower, BNB is still well ahead in terms of price performance. Bitcoin is currently down 65% from its all-time high. BNB, on the other hand, is only down 53% from its ATH. If we were to apply this drawdown to Bitcoin, it would imply a current valuation of $32.450 for BTC. That’s a lot better than $23K and would suggest a reasonable amount of strength, were it to be the case. Currently, it would require a pump of approximately 40% for BTC to hit $32.450. This is significant by any means and reveals just how robust and resilient BNB has been throughout this bearish phase.
Paired Against BTC
Taking a look at the charts, one can clearly see the strength of BNB against BTC. Below is a chart of the BNB/BTC pair, which clearly displays a very strong upward trajectory for BNB against BTC.
Image Source – Binance.com
The rise of BNB against BTC during the 2018 bear market is also quite noticeable. BNB has also broken the previous resistance of 0.012 BTC and is currently trading at 0.0136 at the time of writing. When you consider all the “regulatory issues” Binance has suffered during the last while, it really is quite an impressive performance by any standards. It is quite clear that BNB is being seen and interpreted as a store of value, utility, and “insurance” in a market that can be extremely volatile. Crypto users are associating a level of “stability” with BNB and it shows in the price! Thanks for visiting and see you soon!
Disclaimer
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This article was first published on Sapphire Crypto.
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