The cryptocurrency market is in free fall again. Certain assets are down more than 50% from their all-time highs. In such a market dilemma, the question “Which coins should I invest in?” Comes up again. While the referendum has always been for Bitcoin and ETH, 2021 has made altcoins a serious contender. At the moment, BNB could also be a good option.

BNB: Make a difference without What?

Unlike other leading assets like ETH, ADA, LINK etc., BNB does not try to be development-oriented from an innovation point of view. However, there is an inherent value that comes from what it does, its position in the current market, and obviously its association with the Binance exchange.

In terms of market status, Coinbase is arguably a bigger institution given the company’s recent listing. However, Binance does this job too. The exchange consistently has the highest daily Bitcoin futures volume. In addition, the exchange remains the most liquid during bear markets.

Bid / ask range | source: Crookedness

The above chart shows the live bid / ask (bid / ask) spreads of $ 1 million, $ 5 million, and $ 10 million for the major Bitcoin perpetual swaps. The bid / ask spread is the difference between the buying and selling price of an asset. The liquidity of the asset plays an important role in determining the bid / ask spread. The higher the liquidity, the smaller the spread.

Bitcoin bid / ask spread for $ 1 million recorded on Binance at 0.1%, which means that the supply and demand of Bitcoin has been met on the exchange and is moving into a highly liquid market. In addition to this, it also has the lowest bid / ask spreads on sizes of $ 5 million and $ 10 million.

Perpetuals have played a major role in the current decline, and the liquidation has kept the price low. Now, on the way up, the futures market is expected to play an equally important role, with Binance taking center stage.

NBB: more proven after the 2021 rally?

Although BNB became part of the ecosystem in early 2018, it didn’t arouse curiosity until the price skyrocketed. Since the growing interest BNB has surprised the industry and basically BNB is now bringing various projects to success. Binance Exchange is continuously promoting more projects in Binance Smart Chain and BNB is the native token that brings the most benefits. The exchange settlement fees through the BNB are cheaper and the success of Binance will also boost the BNB.

At its current price of $ 314, BNB could prove to be a good long-term investment unless Binance becomes irrelevant in the future, which is the same probability that Bitcoin will climb to $ 0.

Minh Anh

According to AMBCrypto

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