Binance Continues Crypto Dominance With New NFT Marketplace

NFT mania has just gone bigger, with Binance, one of the worlds largest cryptocurrency companies, announcing its intention to launch a marketplace for the new species of digital assets.

Dubbed as Binance NFT, the platform will see its first light of the day in June. The Malta-based company stated that the new marketplace would bring together “artists, creators, and crypto enthusiasts from around the world” and would enable them to conduct premier art exhibitions and collaborate with other global and regional NFT creators.

“Furthermore,” it added, “Binance NFT will share the same account system as Binance.com, allowing users to access the marketplace alongside our other ecosystem offerings.”

NFT Mania Explained

NFT is a backronym for non-fungible tokens. They represent supposedly unique digital assets secured using blockchain, the same technology that powers global cryptocurrency leaders Bitcoin and Ethereum. NFTs backer treat them as digital certificate of authenticity, insomuch that one of them — an investor who goes by the pseudonym “Metakovan” — ended up buying digital artist Beeples digital collage for a whopping $69.3 million in March 2021.

But the NFT sector also smells like hype to many. For instance, it emerged that Metakoven also owns the world‘s biggest NFT fund. He was already the biggest buyer of Beeple’s work. Therefore, the sale should not represent the collage‘s true value, but more as a PR exercise to attract people’s attention.

But the only difference between Binance and Metakoven is that the former is not shying away from calling NFT a hype.

In its announcement, the company promised to bring forth only “hype-worthy” artist exhibitions, pressing that it would collaborate with top artists and in-demand content exclusively for its Binance NFT platform.

“Our aim is to provide the largest NFT trading platform in the world with the best minting, buying and exchanging experience, by leveraging the fastest and cheapest solutions powered by Binance blockchain infrastructure and community,” said the newly-appointed head of Binance NFT, Helen Hai.

BNB Demand Factor

Binance further promised that it would charge the lowest NFT trading fees in the market, creating another avenue for users to spend its native token BNB. The cost to purchase one BNB has surged more than 1,400 percent in 2021 already. That includes the 6 percent increase in the previous 24 hours.

Binance Coin trades 12 percent lower than its recent record high of $643.65. Source: BNBUSD on TradingView.com

As of Tuesday, the BNB/USD exchange rate was holding a key technical support of 20-day exponential moving average.

Technically, the pair requires a downside correction following its supersonic upside rally all across 2020 and 2021. But, given a lack of super-profitable alternatives outside the cryptocurrency space, the token is likely to stay on its bullish course, now that Binance feeds enough sentiment-boosting updates, such as the NFT platform, to its market.