Table of Contents
BNB, the native cryptocurrency of the BNB Chain and closely associated with Binance, has reached a new all-time high. This is a new world for crypto natives, one that displays a continued shift of investor interest towards altcoins. The milestone comes as other large-cap tokens, including Solana (SOL), Tron (TRX), and Bitcoin (BTC), have also seen significant gains. Simply put, it is now a period of robust altcoin rotation.
Earlier on Wednesday, BNB price soared to $793 before settling slightly lower. It managed to break through the $700-$720 resistance level that held it back for over three years. BNB currently trades at $738, which is a 14% surge in the past 24 hours. The token’s performance outpaced Bitcoin’s modest 0.4% gain and the CD20 Index’s 2.7% advance, highlighting its standout momentum.
Altcoin Rally Gathers Pace
With Bitcoin struggling to break the psychological $100,000 threshold, investors have pivoted to altcoins in search of better returns. The trend has also benefited older cryptocurrencies, such as Ripple’s XRP and TRX. These have surged on optimism fueled by a more crypto-friendly regulatory outlook following Donald Trump’s presidential victory.
The Evolution of BNB and Its Role in the Binance Ecosystem
Launched in 2017, BNB is integral to the BNB Chain (formerly Binance Smart Chain) ecosystem. It is used to pay for transaction fees and offers discounts on Binance trading fees. Despite its critical role, the token faced headwinds throughout 2023 due to regulatory challenges.
Read Also: Countries, Cities and Companies That Made Bitcoin a Reserve Currency
Last year, BNB’s price hovered near bear market lows of $200. It was weighed down by scrutiny of Binance and its founder, Changpeng “CZ” Zhao. However, these issues have largely subsided. In September, CZ completed a four-month U.S. prison sentence for violating the Bank Secrecy Act. And Binance has since strengthened its compliance framework, alleviating concerns among investors.
BNB Tokenomics and Ecosystem Growth
Binance’s token-burning program actively bolsters BNB’s price. It reduces supply based on the blockchain’s activity. In October, the exchange burned over 1.7 million BNB tokens worth approximately $1.07 billion, a move that further tightened supply.
Read Also: Yet Another Solana Hack Swooshes $160k
User activity on the BNB Chain has also surged alongside its price. According to Artemis.xyz, daily active addresses and transactions recently hit their highest levels in over three months. And this is nothing but a robust growth in network activity.
Altcoins Take Center Stage
BNB’s breakout underscores the growing appeal of altcoins as Bitcoin faces resistance near the $100k level. With regulatory challenges easing and ecosystem activity on the rise, BNB places itself as a key token in the ongoing altcoin rally. It is a new trend, where the new market sentiment is favouring diverse digital assets.
Feature image by Rodion Kutsaiev
