As Bitcoin (BTC) buyers consolidate their positions in anticipation of the next rally potentially surpassing $100,000, the altcoin sector is experiencing remarkable growth. Prominent players like Ripple Labs XRP, Binance Coin (BNB), and Tron (TRX) are leading the charge. The TOTAL3 index, which excludes Bitcoin and Ethereum, recently soared to an unprecedented all-time high (ATH) of approximately $1.14 trillion, marking the commencement of a much-anticipated altseason.
BNB’s Impressive Performance
In a striking 24-hour period, the price of Binance Coin (BNB) surged over 15%, reaching a new ATH of about $771.60 before settling around $750 during the early Asian trading session on Wednesday. This significant price movement saw BNB breaking out from its multi-year resistance range between $697 and $725, thereby entering the highly anticipated discovery phase of the macro bull cycle.
The Expansion of the Binance Ecosystem
The Binance ecosystem has matured into a major player in the Web3 project space, encompassing numerous DeFi projects. With a fully diluted valuation of approximately $107 billion, BNB has witnessed a 100% increase in its daily average traded volume, achieving around $5.2 billion. Over the years, Binance has fostered a dynamic online community of developers and investors.
As of this writing, the total value locked (TVL) on the Binance Smart Chain (BSC) stands at about $5.57 billion, with a stablecoins market cap exceeding $6 billion. Furthermore, the Binance exchange has recorded the highest growth in stablecoins inflows across various chains in recent times. With over 240 million registered global users, Binance Exchange is strategically positioned to evolve into a trillion-dollar company amid the mainstream adoption of BNB.
Midterm Targets for BNB
After a triumphant bullish breakout to new ATH, BNB’s price is now strategically poised to reclaim its previous fourth position in terms of market capitalization. From a technical analysis perspective, BNB is aiming for the next major psychological milestone of at least $1,000, which could pave the way for a parabolic rally in the months ahead.
However, for a successful bullish breakout to be validated, BNB’s price must consistently close above the resistance level of approximately $725. Additionally, the weekly Relative Strength Index (RSI) is attempting to rally above the 70% threshold for the first time since early this year, indicating potential further price gains.
Frequently Asked Questions
What is driving the surge in BNB price?
The surge in BNB price is primarily driven by the growth of the Binance ecosystem, heightened DeFi activity, and robust inflows of stablecoins on the Binance Exchange.
How does Binance’s ecosystem impact BNB price?
The expansion of the Binance ecosystem, including a $5.57 billion TVL on BSC and over 240 million global users, significantly boosts BNB’s adoption and contributes to its price growth.
