Binance’s native Binance Coin (BNB) continues to be undervalued despite its exchange’s uncontested dominance in the crypto space today.
According to a recent report by TokenInsight,
Price to earnings ratio (P/E), price to burn ratio (P/Burn), Implied enterprise multiple is under growth average, indicating the market misprices of Binance Coin resulting in an undervalue of the BNB from its fair price.
BNB was initially issued as an ERC20 token on Ethereum before migrating to its own blockchain. The initial total supply of BNB was 200 million coins, but due to the continuous coin burn, the supply has been gradually decreasing.
Binance has conducted 12 BNB burns up to this date. The recent burn was the biggest one ever recorded: about $60.5 million worth of BNB was flushed down the drain.
This practice has affected trading activity across Binance spot, margin, and futures exchanges, various portfolio projects, and ecosystem partners that use BNB.
Binance Coin is presently the 8th largest cryptocurrency. with a total market capitalization of $3.1 billion, according to CoinGecko. In mid-February, it surged to $26, with gains of around 100% since the beginning of the year. Then the price dropped to around $9.
On September 2, BNB spiked to $25, which was still less than the February price increase. Once again the price started to drop. At the time of writing, BNB is changing hands at $21.35 with a 24-hour trading volume of over $584 million. The price has risen by 2.79%.
Aside from Binance Coin, TokenInsight also showed in the same report that other exchange tokens and coins are undervalued, including Huobi Token (HT), OKEx Token (OKB), and FTX Token (FTX), and more.
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