Once considered to be one of the most popular cryptocurrencies for those looking to turn a quick profit, Binance Coin (BNB) was widely projected to reach as much as $100 by the end of the year.
But instead, the price of Binance Coin has faltered, with it falling to current lows of $15.65—its lowest value in more than 6 months. Binance Coin has witnessed 18% of its value cleaved off in the last 24 hours alone.
Starting the year at a measly $6.19, Binance Coin witnessed one of the most impressive rallies of 2019, gaining more than 600% to reach its all-time highest value of $39.52. The digital asset was also one of the few to gain against Bitcoin during this period, almost tripling its value when measured in Bitcoin between January and April.
Its growth is largely due to Binance's aggressive buyback scheme. Every quarter, the exchange burns 20% of its profits in Binance Coin, reducing the total supply in the hope of driving up its price. This tactic appears to have run out of steam.
The altcoin has seen losses over all short-term timeframes: 7% loss in the past 6 months, 57% in the last 3 months and 30.3% in the last week.
But all is not over for the coin. Binance CEO Changpeng Zhao tweeted that Binance's newly launched futures trading platform has seen higher volumes than standard trades on the exchange. He said, "Last 24hr was $700m Futures vs $800m spot. Talk about demand and fast-up take." With a seemingly successful new stream of revenue, this could drive up Binance's quarterly profits, leading to a larger Binance Coin burn. But if the price keeps dwindling, burning is unlikely to bring better days for the beleaguered coin.