QCP analysts explained the growth of the BNB rate by the activity on Binance Launchpool

The platform allows exchange users to earn tokens of new projects in exchange for blocking BNB

14.03.2024 - 13:35

140

2 min

What’s new? Analysts of the trading company QCP Capital have analyzed the dynamics of the rate of the native token of the crypto exchange Binance (BNB) and concluded that it is closely related to the activity on the platform for launching new projects Binance Launchpool. QCP noted that the exchange “has managed to create a virtuous self-reinforcing cycle” for BNB through Launchpool.

QCP’s report

What else is known? Binance’s Launchpool platform, which was launched in September 2020, allows you to block BNB or FDUSD stablecoins to provide funds to a liquidity pool and be rewarded in return with tokens of new projects as part of a farming program. Farming typically lasts for a few days, after which Binance conducts a distribution and listing of the new asset.

QCP noted that users often sell farmed assets to reinvest the funds into BNB tokens that can be locked for rewards in new farming programs. Thus, users seek to increase the profitability of participation in a new project.

At the same time, QCP emphasized that recently new projects on Binance Launchpool appear very often, in connection with which reinvestment in BNB token occurs almost weekly.

By March 14, 49 projects had launched on the Binance Launchpool. Some of the latest were tokens of Aevo, a decentralized crypto derivatives trading exchange, ether fi, a decentralized liquid restaking protocol, and Pixels, a Web 3.0 game.

On March 14, the BNB exchange rate rose to its highest since December 2021 at $601,98, but it is still 11% below the record set in May 2021 ($675,1). Meanwhile, the asset has added 37,3% in the last week and 93,3% since the beginning of the year.

Author: