Binance Coin (BNB) token price rises by over 10%: here are the reasons why

By: Charles Thuo
Charles Thuo
Charles loves traveling, reading, and sharing his knowledge about blockchain technology. read more.
on May 13, 2022
  • At the time of writing, Binance Coin (BNB) was trading at $310.31.
  • Binance has yesterday halted Terra (LUNA) and TerraUSD (USD) trading before opening their trading again today.
  • Binance CEO had earlier stated his frustration with how Terra handled the UST meltdown.

As Terra continues to crater, BNB, the native crypto for the Binance exchange has rallied over 10% and to become the fourth largest by trading volume.

At the time of writing, BNB is trading at $310.31, up 12.36% after dropping from a daily high of $312.69.

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Increased Binance coin (BNB) transactions on the network

On their Twitter account, the BNB chain posted that the number of transactions on the network has increased, something they had witnessed back in December last year.

Due to the LUNA crash, It seemed like crypto investors rushed to purchase the top 10 cryptos like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Binance coin (BNB).

Changpeng Zhao’s guidelines on how to reverse the crypto crash

Following the recent tweet from Changpeng Zhao (CZ), Binance CEO, to LUNA/UST team detailing some methods on how they should have curbed the market crash for the two coins, BNB started to rally.

In his plan, he noted that there was a need to restore the Terra network, recover the UST peg, and the extra LUNA minted burned, however, he did not receive any positive response from the team.

The CEO tweeted again that he was very disappointed with how the team “handled (or not handled)” the situation.

Binance had to suspend UST and LUNA trading on their platform to protect their customers noting that some traders on Binance were rushing to purchase LUNA following the dip since deposits were not yet forbidden.

Zhao noted that those who rushed to buy LUNA were not aware that they were purchasing newly minted LUNA.

He also said that Binance aims at helping crypto projects that are being affected without criticizing them, but this time they had to break the rule to protect their customers.

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