BNB, the native token from the Binance brokerage, appreciated nearly 360% last month, when it found new use cases in various products on its blockchain. The cryptocurrency is trading close to $ 200 this Thursday (18th).

The token was trading at $ 50 earlier this month, reaching a high of $ 197 earlier this morning. As a result, the BNB ecosystem has reached a capitalization of $ 27 billion with its circulating offer of 147 million tokens and is now the fourth most cryptocurrency with the highest market value.

The currency has soared in the past few days, as shown in the image below, and remains in a steady uptrend for now. High prices mean that there is currently a lack of a predetermined “resistance” level, where sellers intervene to “make a profit” on their stakes.

BNB has reached its ATH. Image: BNB / USD via TradingView.

This is the highest price for the token since its launch in 2017. It raised nearly $ 15 million in its initial coin offering (ICO), with revenue earmarked for building Binance, which today has become the largest broker of the world. At the time, it was used only to reduce exchange rates.

However, in recent years, BNB has ceased to be an exchange-only asset for one that powers both Binance Chain and Binance Smart Chain (BSC), the two blockchains built and maintained by Binance. This helped to increase the value of the token, especially as the decentralized finance projects (DeFi) built at the BSC have gained more popularity.

One of these projects is Pancakeswap, a decentralized exchange (DEX) that competes with companies like Uniswap and SushiSwap, based on Ethereum. Pancakeswap allows users to perform point-to-point transactions at high speeds and low rates, compared to Ethereum's expensive DEXs, where fees can reach $ 1,000 during periods of network congestion. However, the underlying blockchain has centralized elements, allowing for such benefits, but adding potential risk.

Pancakeswap is now the second largest DEX on the market, behind Uniswap. He recently overtook SushiSwap and came in second.

The project has its own token, “CAKE”, but BNB is used to set up multiple liquidity pools – where users place their own assets and earn a portion of the fees for each trade made at DEX. Similar projects based on BSC and DEXs emerged last month as well, which helped to further increase retail demand for BNB.

Binance also periodically "burns" – or permanently withdraws – a portion of the BNB tokens each quarter. This movement reduces supply while increasing demand or keeping it stable. This, in turn, can help to push the price up.

* Translated and edited with authorization from Decrypt.co

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