- BNT/USD hits $1, a price point not seen since 2018.
- The daily uptrend is extremely strong and could lead to further gains.
- The announcement about getting more liquidity could be the culprit of the recent bull surge.
BNT/USD is currently trading at $1.06 after peaking at $1.096. Bancor is up 26% in less than 48 hours and up 500% since May. The clear daily uptrend remains strong with bulls trading above the daily 12-EMA at $0.86. The RSI is overextended but it’s obviously not a problem as it has been overbought for practically the past month.
BNT/USD daily chart
Bancor V2 is the main factor behind the bull rally
Just before May, Bancor announced its plans to release the V2 platform. The launch is scheduled for Q2 2020 and intends to solve issues with liquidity. Bancor also started using ChainLink in order to build ‘pegged reserve pools where the relative reserve values are not changed’.
The initial announcement didn’t really move the price of BNT until May 17 when the digital asset saw a 35% price increase in 24 hours with a massive surge in volume. On June 22, Bancor posted an update on Bancor V2 and how it’s planning to amplify liquidity not only for stablecoins but also for volatile tokens.
Bancor V2 expands liquidity amplification to volatile tokens through a novel AMM design that relies on Chainlink price oracles to dynamically update a pool’s pricing curve so an asset’s index price tracks its market price.
The recent bull rally only puts Bancor at $73 million market capitalization, currently ranked 89th by mcap on Coinmarketcap. Considering the significant increase in trading volume and the strength of the run, BNT/USD can easily continue going up.
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