Basics of BNB Chain Update and Use Cases from DeFi Support BNB to $600
The price of BNB (BNB) increased by 7% between September 11 and September 13, trading above $550 for the first time in more than two weeks. This move significantly increased the 2% gains seen in the broader altcoin market capitalization over the same period, reflecting particular drivers related to the BNB Chain and Binance exchanges.
BNB/USD (right) vs. Altcoin market cap (left). Source: TradingView
From a broader perspective, BNB has struggled to maintain levels above $600 over the past three months. However, this is enough to strengthen its position as the third largest cryptocurrency without adding a stable coin. Solana (SOL) last beat BNB on August 8, and the current gap is a comfortable $17.7 billion.
The release of CZ from the US protection and Binance Launchpad developments
According to X user MJ, BNB's price increase was partially driven by Binance founder and former CEO Changpeng “CZ” Zhao's release from prison on September 29.
Source: peach_1340
A US federal judge has sentenced the former CEO of Binance to four months in prison after pleading guilty to failing to have an effective anti-money laundering program while overseeing the crypto exchange. CZ was taken into custody on May 31 but was recently transferred to a residential rehabilitation facility in California.
Additionally, MJ mentioned the upcoming BNB relaunch program and two new Binance launchpad pools contributing to the growth.
The Hamster Kombat (HMSTR) launch pool will run for three days, allowing users to hold both BNB and FDUSD. Telegram's mini-app game reportedly has over 100 million players, and Binance distributes 3 billion HMSTR tokens to depositors.
In Hamster Combat, players take on the role of CEO of a cryptocurrency exchange, aiming to grow the company through strategic investments, improvements, and participation in daily challenges. The goal is to earn HMSTR tokens, and there is no need to download anything beyond the Telegram app.
Similarly, Catizen (CATI) Binance Launchpad will run for four days. This cat-themed gaming platform will also distribute 90 million CATI tokens to BNB and FDUSD depositors on Telegram. Regarding the BNB reset program, there is no official confirmation from Binance at this time, only rumors are circulating.
The increase in BNB Chain activity includes projects beyond DeFi
Attaching the BNB rally to launchpads only and maintaining an official BNB reset program addresses a key aspect of the token's value – demand in BNB Chain applications. Aside from decentralized finance (DeFi) issues, a BNB payment processing fee is required for every smart contract executed on the network.
Some successful BNB Chain applications include Cellula, an immersive metaverse game where users create and upgrade digital assets with non-perishable tokens (NFTs). Starnift, a multiplayer metaverse with gaming and social networking features; QORPO World, a gaming platform with an integrated NFT marketplace and Web3 wallet; and ApeBond, an on-chain launchpad for future projects.
For the week ending September 13, volume on BNB Chain decentralized applications (DApps) rose 12 percent to $5.45 billion, Dapradar reported. In comparison, Ethereum saw a 23% decline over the same period, while Ton Network remained flat at $645 million.
Related: SEC Expands Binance Charge: AXS, FIL, ATOM Now Securities
BNB chain gains highest dps in 7-day volumes, dollar level. Source: Dapradar
BNB Chain highlights include a 26% increase in transaction volume at PancakeSwap and an 88% increase at Avalon Finance. On the other hand, the 0x protocol saw the biggest drop, with an 86% drop compared to last week. With active addresses connecting to BNB Chain DApps, the number grew by 20%, according to Dapradar.
Notable highlights include Balance, a Web3 gaming platform, which reached 87,350 active addresses, and GombleGames, an app that turns Web2 classics into immersive Web3 adventures, amassed 19,170 active addresses in 7 days.
The recent increase in BNB Chain activity, including use cases beyond DeFi, is a critical factor in supporting the recent BNB price increase. With strong expectations around the release of CZ and the rumored BNB reset program, the chances of BNB reaching $600 in the near future look promising.
This article is not intended for general information purposes and should not be construed as legal or investment advice. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of Cointelegraph.
