BNB Soars 80% and Targets New Highs
BNB, the main cryptocurrency of the Binance Blockchain, is having a stellar run. Over the past three months, its price has surged by about 80%, surpassing XRP to become the third-largest cryptocurrency by market capitalization.
Binance network running at full speed
One of the main drivers of the rally is increased activity on the BNB Chain. It works like a highway for crypto transactions – the more traffic it gets, the more fees are collected.
Since June, the number of transactions on BNB Chain has more than quadrupled compared to the start of the year. With rising transaction volume, more fees are generated, and a portion of them is automatically burned – permanently removed from circulation. Binance also regularly buys back and burns its own tokens, reducing overall supply. Lower supply and higher demand naturally push the price up.
New projects and apps attracting users
Another factor behind the growth is the influx of new projects and apps to the BNB Chain. Binance’s massive global user base makes it easy for people to enter the crypto world – through fiat purchases or simple wallet integrations.
The Binance Alpha tool also plays a key role by directing users toward new apps and tokens on the BNB Chain. Additionally, the launch of Aster perp DEX, a new trading platform, attracted traders and boosted trading volumes.
Institutions buying in: Nasdaq-listed firm invests hundreds of millions
Institutional investors have also taken notice. CEA Industries, a Nasdaq-listed company, revealed it holds 480,000 BNB worth over $585 million (as of October 6). The average purchase price was $860 per token, signaling strong belief in BNB’s long-term potential.
Price and interest continue to rise
If the network continues to grow and the supply keeps shrinking, BNB could be on track for new records. It might even challenge Ethereum for the second spot in the future.
Sources:
https://www.theblock.co/data/crypto-markets/exchange-tokens/bnb-burns
https://www.theblock.co/post/373670/cea-480000-bnb-treasury-binance-token-surges