Despite facing regulatory hurdles, Binance Coin (BNB) has seen a remarkable surge of 51% over the past month, hitting a new high of $475, a level not seen in two years. This surge highlights BNB’s resilience and growing prominence in the crypto landscape, as it has reclaimed its 4th position from Solana with a market cap of $73 billion. Now, let’s explore the factors driving the upward trajectory of BNB price.
Factors Driving Up BNB Price
BNB price surge may have been partly influenced by overall market gains. However, there are other factors fueling BNB recent price increase.
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1. Increased BNB Chain Activity
BNB’s rally has been supported by increased activity on the BNB Chain, the blockchain underpinning Binance’s ecosystem. Despite a slight decrease in smart contract deposits over the past month, BNB Chain has witnessed a significant uptick in decentralized application (DApp) volume, ranking third overall in blockchain DApp activity. Notably, the number of active addresses engaging with BNB Chain’s DApps has reached an impressive 5.6 million.
2. Binance Launch of Futures NEXT
The launch of Futures NEXT by Binance has driven the increase in Binance Coin (BNB) price. This platform allows users to predict token listings on the USDⓈ-M Futures market and earn rewards. By purchasing “Picks” and allocating them to preferred tokens, users can earn Futures trading vouchers for successful predictions. This innovative initiative showcases Binance’s commitment to user engagement and innovation in the cryptocurrency market, fostering a dynamic and rewarding trading environment. It has likely contributed to the bullish momentum of BNB as traders and investors anticipate the potential benefits offered by Futures NEXT. BNB’s price surged over 6% following the announcement.
Introducing #Binance Futures NEXT!
Predict which token will be listed on Binance Futures in USDⓈ-M, and get rewarded if your prediction is accurate. Nominate your top token to add it in the pool.
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— Binance Futures (@BinanceFutures) March 7, 2024
3. Binance Robust Infrastructure
While other major exchanges like Coinbase grappled with outages during surges in cryptocurrency volumes, Binance’s trading remained unaffected, showcasing its robust infrastructure. This reliability, coupled with its leadership in spot and derivatives trading volumes, has attracted users looking to benefit from reduced trading fees and participation in token launches.
4. Commitment to Structured Corporate Governance Framework
Initially, doubts loomed over BNB’s ability to reclaim such heights, especially after Binance’s founder and former CEO, Changpeng Zhao (CZ), faced legal challenges related to the exchange’s alleged involvement in illicit activities. CZ’s guilty plea deal with the US federal court and subsequent settlement with the US Commodity Futures Trading Commission (CFTC) in December 2023 helped alleviate uncertainties surrounding BNB’s future. Binance’s commitment to implementing a structured corporate governance framework and CZ’s adherence to remaining in the US until sentencing have further bolstered investor confidence.
Market Performance of Binance Coin (BNB) Price
The market performance of Binance Coin (BNB) reflects its RAPID rise in the cryptocurrency space. Presently, BNB coin price is trading at $487.77, with a notable 24-hour trading volume of $3.4 billion, showcasing significant investor activity. In the past day, BNB has increased by 3.96%. Ranked 4th on CoinMarketCap, BNB’s market capitalization is $72 billion. Out of 149 million circulating BNB coins, the value has risen by 19% in the last week and an impressive 69% in the last year. These metrics collectively portray BNB as a dynamic and attractive asset for investors, with sustained upward momentum and growing market dominance.
Will BNB Price Hit $500?
Based on the technical analysis of Binance Coin (BNB) various indicators provide insights into potential price levels and key levels of support and resistance.
The moving averages indicate a long-term bullish sentiment, with both the exponential moving averages (50) and (200), and simple moving averages signaling a buy across different. The MACD (Moving Average Convergence Divergence) level of 33.3 suggests a buy signal, indicating upward momentum in the price of BNB.
Considering the technical indicators, the highest price BNB can reach is potentially influenced by resistance levels, with $505.3 (R2) acting as a significant barrier. If BNB manages to break above this resistance level, it could aim for higher price targets, possibly reaching levels around $636.2
On the downside, the lowest price BNB can reach might find support at $321.4 (S1) and $243.5 (S2), which could provide temporary relief during downward movements. Nonetheless, if support levels are breached, it could lead to more downward movement, potentially reaching around $112.6 (S3). Despite indicators pointing towards a positive trend for BNB, caution is advised for traders and investors to keep an eye on support and resistance levels.
