After Bitcoin and Ethereum, the third-largest crypto Binance Coin (BNB), issued by the world’s largest cryptocurrency exchange Binance, has surpassed multiple global financial service players in market cap (m-cap). With $88 billion value, at the time of filing this report, BNB was bigger than BNP Paribas that had an m-cap of $84.92 billion, SoftBank ($81.91 billion), Moody’s ($72.60 billion), ICICI Bank ($69.03 billion), London Stock Exchange ($51.12 billion), and others, data from companiesmarketcap.com showed. BNB was trading at $527 on Monday afternoon with a 24-hour trading volume worth $1.2 billion.
BNB had 25 other businesses in the overall financial services space ahead of it in m-cap. Bitcoin has been the biggest player in this segment with an m-cap of $890 billion, nearly double of $471 billion value of Visa and $467 billion of JP Morgan Chase. Ethereum was the fourth most valuable player in the financial services list with $454 billion m-cap after JP Morgan Chase but significantly higher than Bank of America ($364 billion), Mastercard ($353 billion), PayPal ($221 billion), Morgan Stanley ($176 billion), etc.
However, BNB, Ethereum, Bitcoin, cannot be compared with physical enterprises since cryptos are essentially digital currencies built on the peer-to-peer software system called Blockchain while the latter are for-profit businesses. “BNB is a utility token. It is used on Binance to pay for fees, participate in token sales and more. But more importantly, its use as a utility currency on Binance Smart Chain (BSC) makes it valuable. BSC has about $17 billion in total value locked, with some interesting DeFi protocols built on top of it. BNB is one of the few cryptos that works as an exchange token and a utility token. We are very bullish on BSC as well, and are looking to integrate several tokens from the blockchain on our exchange in the coming days,” Darshan Bathija, CEO & CO-founder, Vauld told Financial Express Online.
In the past 12 months, BNB has jumped nearly 1,200 per cent from $41 at the beginning of 2021, beating Bitcoin and Ethereum, as per data from CoinGecko. The growth rate in BNB price was higher than around 63 per cent growth in Bitcoin and approximately 420 per cent jump in Ethereum last year. BNB had peaked at $675 in May last year before declining to $261 towards the end of May.
“I see a value that Binance brings as an exchange and BSC brings as a blockchain. The common coin between them is BNB. If the exchange and the blockchain do well in 2022, so will the coin. Given the popularity of BNB, we’re integrating BNB with features like fixed deposits, lending, and borrowing on Vauld,” added Bathija.