Binance Coin (BNB) has overtaken Tether to become the third-biggest crypto by market capitalization only behind Ether and Bitcoin. Since Bitcoin went on a wild rally at the start of December 2021, the altcoins now seem to be playing catch-up with many of them setting new all-time highs in recent weeks.
BNB is a crypto that is issued by the biggest cryptocurrency in the world, Binance. The coin has hit a major historical milestone as of February 19, 2021, to become the third-biggest coin by market capitalization.
At the time of publication, BNB’s market cap stands above $40 billion, exceeding the biggest stablecoin Tether (USDT) by around $7 billion according to data acquired from CoinGecko.
Binance Coin is trading at $260, up 45% in the past 24 hours and gaining 104% in the last seven days at the time of writing.
BNB also experienced a huge spike in daily trading volumes alongside the propelled growth in market capitalization. The average daily trading volume of the Binance Coin hit a fresh high of $14 billion up from about $9 billion a day ago.
Binance Coin’s entry into the top three coins by market cap comes after a major rally. Based on previous reports, BNB recorded a huge surge on February 18, surpassing XRP to become the sixth biggest coin behind Cardano (ADA) and Polkadot (DOT).
What Is Pushing BNB Up?
The coin’s surge comes amid the successful launch and implementation of Binance Smart Chain-based decentralized exchange, PancakeSwap. This decentralized finance (DeFi) platform has experienced some parabolic surge in recent weeks, exceeding Uniswap to become the biggest decentralized exchange by trading volume on Thursday.
At the time of publication, PancakeSwap’s average daily trading volume is around $1.6 billion, up from $1.2 billion of Uniswap, according to the data acquired from CoinGecko.
Binance CEO Changpeng Zhao highlighted that BNB has been setting new all-time highs in fiat terms and with regards to Bitcoin. Zhao wrote:
“From a humble 0.00001 BTC per BNB, we have grown 480x against BTC in the last 3 and half years.”
He explained that BNB’s performance against BTC has been the primary goal of Binance:
“This has always been our goal, to grow a bit faster than BTC. Not overtaking it, but with so much effort we put in, we want to see it grow a bit faster. Otherwise, we should just buy BTC and not work.”