Binance introduces 'crypto loan' feature: Will this help BNB hit $600?

Binance introduces ‘crypto loan’ feature: Will this help BNB hit $600?

11 July 2024

in BNB

Reading Time: 4 mins read

Binance expanded loanable assets to enhance user borrowing flexibility.
BNB saw a positive price action following the new loan services announcement.

Binance [BNB], one of the popular cryptocurrency exchange platforms, has unveiled plans to expand its loanable assets offered through Binance Loans (Flexible Rate) and VIP Loan services.

This initiative is designed to cater to the diverse borrowing requirements of users, enhancing their flexibility within the platform.

What’s the purpose?

By introducing new assets available for lending, Binance aims to maintain its position as a versatile provider in the evolving landscape of digital finance.

Interestingly, this move by Binance comes amidst its ongoing legal battle with the SEC, and the recent CEO Changpeng Zhao’s sentencing signaling a refreshing step forward.

Providing further insight into the plan, the team released a press release and noted,

“Binance has added the following loanable assets on Binance Loans (Flexible Rate) and VIP Loan.

Binance Loans (Flexible Rate)- Bittensor (TAO), LayerZero (ZRO), and Lista (LISTA)

VIP Loan- Bittensor (TAO), COTI (COTI), LayerZero (ZRO), Lista (LISTA), Portal (PORTAL), Sleepless AI (AI), and Vanar (VANRY).”

Providing further clarity on their new initiative, the team added,

“To place new Binance Loans (Flexible Rate) orders via the Binance App, please upgrade the App to iOS v2.78.0 or Android v2.78.0, or later. Older app versions no longer support the placement of new Binance Loans (Flexible Rate) orders.”

Effect on BNB?

This development reversed the downward trend observed with BNB for quite some time. As of the latest update, BNB was trading at $530.70 with a 1.39% increase in the last 24 hours.

However, it’s important to note that while the new plan spurred BNB’s price increase, the Relative Strength Index (RSI) remained at 44, signaling bearish sentiment below the neutral level at press time.

Hence, for BNB to reach and surpass $600, it must breach the immediate resistance at $559, paving the way for a sustained bullish phase and the anticipated bull run.