Key Highlights:
- Binance Coin (BNB) surged beyond $1,230, which is a new all-time high, having increased 5.8% today.
- In September, BNB Chain saw a spike in leading decentralized trading and lending, reporting 52.5 million active addresses, beating Solana.
- Now, BNB is close to overtaking XRP as the third-largest cryptocurrency by market cap (excluding stablecoins).
This week, Binance Coin (BNB) continued its upward trend, surpassing its previous peak with a fresh all-time high of $1,237.50 by nearly 6% in the last 24 hours. BNB is currently the fourth-largest altcoin by market cap with a valuation of about $172 billion. The token is close to overshadowing Ripple’s XRP, which has a market cap of approximately $179 billion and a market price of $3.
What’s Happening with BNB Chain?
The most recent spurt was precipitated by a junction of matters such as increasing institutional involvement, exploding network traffic, and augmented trading volumes on centralized and uncentralized forums. The ecosystem growth of BNB Chain, and especially in decentralized finance (DeFi), has been a significant wind in the sails of its native token.
According to the TokenTerminal data, the BNB Chain recovered its status as the most actively used blockchain by the number of active addresses in September, recording 52.5 million active wallets and passing Solana in the first place since August. The rise was mostly contributed to by the rise in the involvement of decentralized exchanges and lending sites.
One of the new DeFi initiatives on the BNB Chain, called Aster Protocol, stated that user participation and liquidity have increased sharply. As reported by DeFiLlama, its total value locked (TVL) had increased by 576% in the last month to $2.43 billion. This activity spurt cemented the leadership of BNB Chain in DeFi adoption and on-chain transactions.
There were also indications of retail enthusiasm coming back to the ecosystem, which were also observed by the market observers. A major memecoin trader supposedly transformed a holding of less than $3,000 into almost $2 million after new speculation following a posting by Binance founder Changpeng Zhao, which made a wave among short-term holders.
Institutional investors have also been very prolific. According to the recent disclosure, Jiuzi Holdings, an electric vehicle manufacturer, and Azghakh International-based Alem Crypto Fund included BNB in their corporate holdings, which demonstrates the increasing interest in digital assets as a component of treasury management algorithms.
The rally was paralleled by the wide-ranging optimism in the crypto market as it was expected that the U.S. Federal Reserve would pull interest rates down by a quarter point later this month. There was also a recent upgrade of the BNB Chain network that reduced the minimum gas fee to 0.05 Gwei, which increased further on-chain participation, as the transaction became cheaper.
Binance Coin Price Update
In the technical analysis model by NameCoinNews, BNB is trading between $1,148.12 and $1,238 throughout the session. The most intense price movement was when the token broke out of the $1,200 level, and there was a sharp increase in the trading volume that was almost five times the average of the daily trading volume.
This activity burst signified $1,223 as a resistance level that was broken shortly after, whereas a steady purchasing force was witnessed at the support region of $1,148 and $1,158. To traders, demand would recur over and over in this range, indicating that the institutional bids may be piled up at these lower levels to absorb short-term corrections.
Nevertheless, BNB has retained its power above $1,200, despite a slight depreciation at the end of the day. The heavy volume, indicating the pullback, was an indication of profit-taking by large holders, but not a general sell-off. Observers have pointed out that the price activity is an extension of accumulation and consistent weight on the underlying fundamentals at BNB, as the trading momentum has been high.
Also Read: Ethereum Price Soars as BlackRock Purchases $127.5 Million in ETH
