Bancor (BNT): What it Means, Purpose and Trends

Aug 16, 2023
A photo of the Bancor (BNT) logo

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Hey, YouHodler fam! Welcome to the first edition of our “Token/Coin of the Week” series. Each week, we will feature a new coin or token that is showing recent signs of activity. We’ll also introduce each one to the community so you can better understand this market and learn of new opportunities.

This week, Bancor (BNT) is our focus. It’s been a very exciting seven days for BNT and we’ll get into all of that shortly. But first, let’s start with an introduction. 

What is Bancor (BNT)?

Bancor is a decentralized, open-source protocol ecosystem that promotes on-chain trading and liquidity. Yes, that’s a lot of technical jargon. To put it simply though, it’s a DeFi protocol that lets users swap cryptocurrencies directly and instantly as opposed to exchanging them on cryptocurrency exchanges. 

To fund these trades, Bancor uses something called an automated market maker (AMM). An AMM uses smart contracts to execute trades and liquidity pools to fund them. These liquidity pools consist entirely of cryptocurrency deposited by Bancor clients. Then, Bancor rewards these clients with interest payments - similar to a savings account at your traditional banks. The interest payments are funded via trading fees that other users pay for trading on Bancor. 

BNT is the native token of Bancor. It’s the primary token used within the Bancor network and its main use case is an intermediary currency when tokens are traded.

Bancor (BNT) price analysis: Carbon protocol, PayPal, and more

BNT/USD chart by TradingView

Over the past month, we saw BNT transition into a bullish trajectory after several months of quiet consolidation. Currently, the token is trading at $.43, up 13.8% on the month but down 21.60% on the week.

After spiking up considerably at the beginning of August, BNT went through several days of volatile spikes before settling on a steady decline starting on August 11. 

The main reason for this is the release of Bancor’s new trading protocol, Carbon. On August 6th, Bancor released a primer on this new trading protocol, which they say is

“a new groundbreaking approach to on-chain trading and liquidity.”

With many trading experts praising these advancements, one can expect the BNT price to be active in the coming weeks. 

Institutional investors bullish on Ethereum (for now)

Similar Ethereum-based DeFi tokens are having success like BNT. One possible explanation is the multiple asset management firms that have applied to launch Ether-based exchange-traded funds (ETFs).

Furthermore, PayPal, one of the world’s largest global payment service providers launched a new dollar-based stablecoin (PYUSD) on the Ethereum mainnet. With a user base of 400 million users, this means more eyes on Ethereum and more active users, which bodes well for Ethereum-based projects like Bancor. 

BNT price prediction

BNT and other cryptocurrency markets are showing signs of recovery in recent months. We expect this recovery to continue although with plenty of volatility in between. Be prepared for both bullish and bearish swings and be sure you have the tools to help you capitalize on those movements. 

With YouHodler’s MultiHODL service, for example, you can multiply BNT in both bull and bear markets thanks to the feature’s unique “chain of loans” engine. To learn more about MultiHODL and to open a BNT position, simply click the button below. 

Disclaimer: “The content should not be construed as investment advice and does not constitute any offer or solicitation to offer or recommendation of any investment product. It is made available to you for information and/or education purposes only.

You should take independent investment advice from a professional in connection with, or independently research and verify any information that you find in the article and wish to rely upon.”

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