BNB Price Rises as Binance Holds Market Share Despite Legal Hurdles
Summary:
The cryptocurrency BNB (BNB) is showing signs of a comeback with its price rising after a four-day drop. It performed strongly over the last month, with its value posting a 50% increase. Despite regulatory challenges, Binance, the exchange backing BNB, has held onto its market share, contributing significantly to global crypto trading volume. The BNB Smart Chain is also gaining momentum, with increased on-chain activity and rising total value locked. Currently, BNB’s price stands 21% below its all-time high of $690 achieved in May 2021.
The BNB (BNB) cryptocurrency's price is heating up once more following a four-day slump in which it lost 16% of its value. On March 20, the cryptocurrency bounced back from a dip at $500 to an intra-day peak of $539. Currently, BNB is exchanging hands at around $550, up by 5% in the past 24 hours, as per the data provided by CoinMarketCap.
Over the past month, BNB has performed strongly. The first-layer token increased its value by 50% in the last 30 days, climbing by 61% in March alone to reach its peak of $645 on March 16th. This is the highest value since November 2021. The surge brought the currency's value within 7% of its all-time high of $690, attained on May 10, 2021.
This performance sparked queries as to whether BNB will soon revisit its all-time highs. Let's explore the factors that could potentially push BNB’s price higher.
Despite facing regulatory hurdles in the United States and across the globe that have affected its operations, the Binance cryptocurrency exchange platform seems to be holding onto its share of the market. After settling a legal scramble in 2022 with its former CEO, Changpeng Zhao, and paying a fine of $4.3 billion, Binance has rebounded and its share of trading volume has steadily increased since October 2023, rising for five consecutive months to exceed 40%.
Data from CoinGecko confirms this, stating that out of the total 24-hour trading volume of $178 billion on all crypto exchanges, Binance made up of $41.7 billion on March 20. In comparison, ByBit recorded a much lower volume of $7.5 billion, while OKX contributed $6.5 billion.
Simultaneously, the Binance BNB Smart Chain (BSC) is also bouncing back, according to a report by K33 Research. David Zimmerman, a DeFi analyst at K33, states that the increase in BNB's price has surged on-chain activity, reviving the BSC ecosystem.
In line with this, an independent analyst identified as Kyledoops observed the increasing total value locked on the blockchain due to "BNB's exploration into price discovery mode." He noted, "$BNB TVL skyrockets to $6 billion, hitting levels unseen since June 2022.”
Data from DefiLlama supports this, showing a 54% uptick in BNB Chain’s total value locked (TVL) in 2024, indicating an increase in network interactions by users and developers. As per DappRadar's data, BNB Chain continues to outperform layer 1 blockchains, managing 7.07 million transactions in the last 30 days, compared to Ethereum’s 1.2 million transactions.
The image above from DappRadar depicts that BNB Chain also outnumbers the total unique address wallets, with over two million Unique Active Wallets (UAWs) interacting with the layer 1 protocol in the past 30 days. This number significantly exceeds the 585,430 UAWs on Ethereum and the 142,890 on Avalanche.
Currently, BNB's price stands 21% short of its all-time high of $690. According to K33's report, although Solana (SOL) has recently grabbed the spotlight, "BNB had an equally impressive move this year and is significantly closer to record highs.”
Zimmerman further commented, “BSC was a prime area for altcoin frenzy in the former bull run, and it appears to be prepping for another rally here.”
In a March 14 note on X, an independent analyst named Batman observed BNB's price as it neared all-time highs, stating that the "$BNB price has been on a colossal surge recently." Batman added, “Price discovery isn't far away for BNB. This has a high potential to trigger a massive rally for altcoins in the BNB ecosystem."
Right now, the price is 20% below the all-time high, but the moving average convergence divergence (MACD) indicator suggests that the market still favors an upwards trend.
Future levels to keep an eye on are $550 and $600. To push the price towards the all-time highs of $690 and steer BNB into price discovery territory, investors will need to convert this supply zone back into support.
Please note that this article does not offer investment advice or recommendations. All investments and trading moves carry inherent risks; therefore, readers are encouraged to carry out thorough research before making any decisions.
Published At
3/21/2024 12:24:09 AM
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