3 Reasons Why Binance’s BNB Is Going to a New All-Time High
BNB (BNB) price is heating up again after four days of correction after losing 16% of its value. BNB rose from a low of $500 on March 20 to an intraday high of $539. According to data from CoinMarketCap, at the time of writing, the price was around $550, up 5% in the last 24 hours.
BNB's performance was bumpy last month. The Layer 1 token has risen 50% in the past 30 days and 61% in March alone, reaching $645 on March 16. This is the highest price since November 2021. This rally reached a high of $690 for BNB to reach 7%. On May 10, 2021
This has caused many traders to doubt whether the price of BNB will return to its high level. Let's take a look at the factors that could push BNB higher.
The Binance exchange leads in trading volumes
Even after regulatory challenges in the United States and abroad marred its operations, the Binance crypto exchange appears to be holding its market share. In the year After a wild legal ride in 2022 that led to the ouster of former Binance CEO Changpeng Zhao and a $4.3 billion fine, Binance has regained its trading market share.
Data from CCData shows that Binance's market share has continued to grow since October 2023, rising more than 40 percent for the fifth consecutive month.
This is confirmed by CoinGecko data, which shows that the total 24-hour trading volume on all crypto exchanges is $178 billion, compared to Binance's $41.7 billion on March 20. ByBit is in second place with only 7.5 billion dollars, and OKX is in third place with 6.5 billion dollars.
BNB Smart Chain is seeing increased activity.
Just as the exchange overcame the negative branding impact of its regulatory challenges, the exchange's BNB Smart Chain (BSC) is also “coming into its own,” according to K33 Research.
David Zimmerman, DeFi analyst at K33 Research, said BNB's price action has led to more activity on the chain, and there is life on BSC once again.
Independent analyst and X user Kaledops observed that BNB's price was trading at $586 before the correction and said that the total value locked up on the blockchain is increasing because “BNB is in price discovery mode.”
“$BNB TVL surges to levels not seen since June 2022 to $6 billion.
According to Defillama data, BNB Chain TVL will increase by 54% in 2024, indicating that users and developers are becoming more connected to the network.
According to data from Dapradar, BNB Chain remains a powerhouse among Layer 1 blockchains, handling 7.07 million transactions in the last 30 days compared to Ethereum's 1.2 million transactions.
Related: Web3 Gamer: Gods Unchained app drops crypto, Kings of Fighters Arena review
Unique Active Wallets (UAW) is a metric Dapradar uses to describe how many private crypto wallet addresses are connected to blockchain smart contracts.
The image above shows that the BNB Chain manages unique address wallets where more than 2 million UAWs have interacted with the layer protocol in the last 30 days. This is higher than the 585,430 UAWs on Ethereum and 142,890 on Avalanche.
The price of BNB is 21% away from its all-time high
BNB price is currently 21% below its all-time high of $690. Although Solana (SOL) stole the limelight in the recent past, “BNB has shown similar impressive performance this year and is very close to highs,” K33 Research reports.
Zimmerman notes
“BSC was a hotbed for altcoin madness in the previous bull run, and it looks like another run is heating up here.”
In a March 14 post on X, independent analyst Batman sees BNB nearing all-time highs, saying, “The value of $BNB has been in a state of shock lately.”
Batman added,
“Price discovery is not far from BNB. This could lead to a huge rally for altcoins in the BNB ecosystem.
The price was trading 20% below its all-time high at the time of publication. The Moving Average Convergence Divergence (MACD) indicator was still in positive territory above the zero line, indicating that the market is still bullish.
Key levels to watch above are $550 and $600. The bulls need to push this supply zone back to support before pushing the price to the highs of $690 and bringing BNB to a price breakthrough.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
