2020 was an exciting time for the cryptocurrency market. As we make our way through the beginning of 2021, it seems as though the crypto market will continue to gain momentum, bringing with it a new market landscape.
To explore this, we will take a look at the rise of altcoins, specifically focusing on Binance and how the network’s performance is changing the market and introducing new members to its ecosystem.
Binance and the Flippening
Early last month, on February 4th, we saw a kind of “flippening” occur when Binance (BNB) overtook Bitcoin Cash (BCH) in its place as the 9th largest cryptocurrency.
For those that are unaware, a flippening is basically an occurrence where a coin gains momentum and becomes more valuable than Bitcoin. This warrants a title simply because the creation of Bitcoin marked the birth of the cryptocurrency market. So unsurprisingly, when other coins gain value that supersedes the matriarch of crypto coins, it’s considered a big deal.
Now, as we write this almost exactly a month later, we see that BNB has managed to sustain this growth. In fact, according to CoinMarketCap, BNB is now the 5th largest cryptocurrency with a current value of $221.64.
Behind the price increase, we can attribute this growth to three main causes.
Firstly, there has been an expansion of DeFi-related protocols on Binance Smart Chain, which thanks to being EVM-compatible allows for smooth transition of projects away from the congested network of Ethereum. Secondly, Binance’s ecosystem has been growing and creating new partnerships as well as integrations. Finally, trading volumes have risen exponentially and much of this growth is thanks to none other than institutions.
When looking at the growth of the cryptocurrency market over the last year from Bitcoin to now altcoins such as BNB, we are left with strong indications that the crypto market is expanding and it seems as though mass adoption is not as far as we once thought. This is particularly well-reflected in that fact that institutions, a group that is not known for its support of the crypto market, are now making up most of the volume on Binance.
Institutions Are Starting to Adopt Crypto
As stated, in addition to its coin swerving into 5th place as the largest cryptocurrency, Binance is also supporting an influx of crypto adoption by institutions.
During an interview with Bloomberg, Binance CEO, Changpeng “CZ” Zhao spoke about this growth stating that the total size of their userbase has grown rapidly over the last year and couple months. He also stated that institutions and corporate treasuries are making up and contributing to most of the volume on the chain, with the latter bringing with them a new pattern of buying based on micro-strategies.
This is important for the crypto market because for the longest time, cryptocurrency has been seen as something that belonged to a minority group. With more institutions adopting cryptocurrency, we are finally seeing this digital asset get the attention it deserves and are hopefully one step closer to a fully decentralized market where users can enjoy the benefits of financial autonomy.
The Time is Now
If there ever was a time to get involved with crypto, now might just be the perfect moment. With Bitcoin and altcoins gaining popularity, we are seeing the market grow and experience support in a way that it never has.
You can start getting involved by downloading the PumaPay wallet. The app allows you to do everything from buy, store, send and receive cryptocurrency. You’ll also have direct access to exchanges and competitive rates for loads of different coins.
PumaPay also offers high security as a blockchain-based wallet as well as convenient biometric login.
For any cryptocurrency enthusiast, this growth represents an exciting point in crypto history. Although only time will tell, we hope that this pattern of growth continues, bringing in the dawn of a decentralized financial market that benefits everyone.
Ready to join the cryptocurrency market? Get started today with the PumaPay Mobile Wallet.