Binance Coin (BNB) has arguably been one of the best performing cryptos since the start of the year. However, recent developments and information shared by Alex Kruger, a famous cryptoanalyst, suggests that the altcoin’s market demand would drop in the coming months.
Three days ago, Binance had announced that it was launching a trading service exclusively for U.S. traders. The soon-to-be-launched exchange followed a ban on U.S. citizens, who will from September 12, lose access to its central platform (Binance.com).
“Binance is unable to provide services to any U.S. person,” is the simplest explanation to the exchange’s updated terms of service.
The development, no doubt generated mixed feelings for crypto enthusiasts but could have even more consequences on the value of Binance Coin (BNB), the native token of the Binance Chain and exchange.
In his tweet today, June 17, Kruger tried to analyze the implications that Binance US would have on BNB, mainly if the U.S focused exchange fails to list the coin for regulatory reasons.
“Sharing back of the envelope calculations for US-based Binance users. If no $BNB in Binance US, $BNB demand would drop by about 8%. A large number, yet not a game changer,” the analyst wrote.
He then defends his claims by given a pictorial detail of the potential demand drop on BNB from U.S. based users to be 13% noting the traffic estimate varies by the source. While Similarweb.com showed that 14% of Binance visitors come from the U.S., Alexa.com statistics calculate the same figure at 23%.
“Using Alexa as input, the demand drop would be 13%.”
Kruger however, was quick to point out in an earlier update that the long term prospects for Binance Coin (BNB) remain strong despite the possible drop in demand soon.
Meanwhile, price action around Binance Coin (BNB) shows that the cryptocurrency has reacted well to the supposed negative news. After falling to around $29 following the announcement of Binance US, the altcoin has joined the rest of the market to climb to as high as $34.
BNB’s market cap at press time was $4.7 billion.
Read original at Coinfomania
Author: Rebecca Asseh