Here’s Why Binance Coin (BNB) Hit Fresh Annual Highs
Binance Coin (BNB) price is up over 30% in September to trade at new 2020 highs above the $30 mark. The crypto exchange Binance has made another step in its chase after DeFi and granted its decentralized Binance Smart Chain (BSC) access to its centralized exchange (CeFi).
Chasing DeFi boom
Binance is looking to invest $100 million in DeFi projects on BSC. Changpeng Zhao, Chief Executive of Binance, announced this plan at the World of DeFi summit that the exchange held on Thursday. The new plan will create a link between decentralized and centralized finance and integrate Binance with the smart chain.
Binance said that its users will be able to make use of CeFi elements such as futures, margins, savings, DeFi staking and DeFi pooling, as well as elements of DeFi like lending, automated market makers, liquidity mining, yield farming.
A new plan aims to satisfy Binance users who would like to engage in DeFi without completely pulling out of the centralized platform. A platform will provide users who own BNB with broader access to the decentralized governance of the BSC when they take part in staking on the smart chain.
The Binance Smart Chain operates on a Proof-of-Stake Authority (PoSA) consensus mechanism. Binance keeps expanding in the world of DeFi since it first launched its decentralized exchange in April last year.
At the beginning of September, the crypto exchange launched a new product Launchpool that offers users a way to make a profit by staking tokens for yield farming – an approach that allows users to make money in decentralized finance.
Launcpool users can stake BNB token, BUSD stablecoin and the ARPA token and earn interest-bearing rewards, the exchange said. Furthermore, Binance also rolled out a new DeFi platform similar to Uniswap, giving trades access to an automated market maker (AMM).
Fresh annual highs
BNB price exploded higher this month to trade at new 2020 highs above the $30 handle. The buyers are now closing in on the next target above $32, which is the 127.2% Fibonacci extension. Hence, this is the target for investors that are playing BNB/USD to the long side.
Any pullback to $27.50 will also be seen as an opportunity to buy BNB as this level offers an attractive risk-reward. The buyers are likely to stay in control as long as the price action trades above $27.
Binance plans to launch a new platform that will integrate centralized and decentralized finance. Separately, BNB/USD price logged new 2020 highs after gaining more than 30% in September.
Source: invezz.com
