What to know:
- BNB hit a lifetime high of $793 on Wednesday, gaining 14% over the past 24 hours and outperforming the broad-market CoinDesk 20 Index.
- The token is benefitting from rotation to altcoins, easing regulatory headwinds in the U.S. and shrinking supply through token burning.
As a seasoned crypto investor with a decade of experience under my belt, I must admit that the surge of BNB to a new all-time high is nothing short of exhilarating. I remember when BNB was barely a blip on the radar back in 2017, and now it’s outperforming even Bitcoin!
On Wednesday, the cryptocurrency BNB, associated with Binance and serving as the native token of the BNB Chain, reached a brand-new peak price. This marks another significant crypto joining bitcoin (BTC), solana (SOL) and Tron’s TRX in setting new records. The rotation of capital into altcoins continues to gain momentum.
Earlier on Wednesday, Binance Coin (BNB) reached a peak of $793 in its session, surpassing a resistance level of around $700 to $720 that had held firm for over three years, according to TradingView data. Currently, the token is being traded at $730, representing a 14% increase in the past 24 hours, outperforming Bitcoin’s minimal 0.4% growth and the CoinDesk 20 Index’s more significant 2.7% rise.
The event transpired because bitcoin failed to surpass the significant $100,000 threshold, causing traders to shift their funds towards lesser-known cryptocurrencies, or “altcoins,” in pursuit of profits. Notably, older cryptocurrencies like Ripple’s XRP and TRX recorded substantial growth over the past month as Donald Trump’s election win suggests a more favorable regulatory climate for digital assets.
Initially introduced by the prominent cryptocurrency exchange Binance back in 2017, BNB serves as the driving force behind the blockchain network known as BNB Smart Chain (previously named Binance Chain). This token is not only employed within Binance for covering transaction costs and benefiting from trading fee reductions, but it also plays a crucial role in powering the entire BNB Chain ecosystem.
2023 proved to be a challenging year for BNB as regulatory issues cast a shadow over it. Despite the crypto markets recovering by the end of the year, BNB was lingering near bear market lows around $200. Fortunately, these pressures seem to have subsided. Notably, Binance’s founder and former CEO, Changpeng “CZ” Zhao, completed his four-month prison sentence in the U.S. for Bank Secrecy Act (BSA) violations in September. Additionally, the exchange has bolstered its compliance department, as reported by CoinDesk last month.
The token is similarly profiting from the quarterly token destruction plan of the exchange, a strategy that consistently decreases the token’s circulation due to activity on the BNB Chain blockchain. Last month alone, Binance burned over 1.7 million BNB tokens, valued at approximately $1.07 billion, as reported by the exchange.
The surge in prices on the BNB Chain network saw an increase in user engagement as well. The daily active addresses and transaction volume hit their highest points in over three months, according to data from Artemis.xyz.
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2024-12-04 23:31