BNB Price Outpaces Bitcoin and Ethereum
Binance Coin (BNB) is setting some records in the cryptocurrency market; it has outpaced Bitcoin and Ethereum with an impressive 220% gain over the past year. By contrast, both Bitcoin and Ethereum have grown just 133% and 71%, respectively.
Changpeng Zhao, Binance’s founder, pointed out how well the cryptocurrency has been doing, saying that traders often focus on short-term price movements and fail to look at the bigger picture of BNB’s growth story.
Key Drivers Behind BNB’s Rally
Robust DeFi Ecosystem on Binance Smart Chain
The Binance Smart Chain ecosystem has gained significant traction, amassing up to $6 billion in total value locked, thus positioning it as the fourth largest DeFi platform in the world, after Ethereum, Solana, and Tron. Moving on to the BSC-based DEX protocols, the volume for the last 30 days was $9.91 billion, while the cumulative is $1.17 trillion.
Deflationary pressure is supported through the consistent coin burns seen on BNB. To date, in the recent quarter, Binance burned 2.02 million coins. With this, Binance hopes that over a longer-term focus, the entire supply could taper down to just 100 million coins for scarcity, encouraging price appreciation in return.
Utility Addition Through Stablecoin BFUSD
The introduction of BFUSD has really increased the utility of BNB, Binance’s new 20%-yielding stablecoin. This new offering would attract investors and create fresh momentum for the coin.
Regulatory Clarity
Regulatory uncertainties, especially those surrounding Binance, have reduced. Changpeng Zhao recently settled all legal issues in the U.S. There are fewer market fears now, ensuring more stability for Binance and its coin, BNB.
Technical Indicators Show More Upside
The BNB technical charts indicate more growth ahead:
- Cup and Handle Pattern: The formation of the bullish pattern on the weekly chart points to a possible 70% rally toward $1,170.
- Murrey Math Lines: The movement of the coin above the “weak, stop & reverse” level could propel it to as high as $875. For now, however, if it drops below $625, the prediction will be void.
Conclusion
With strong fundamentals, robust technical indicators, and reduced regulatory concerns, BNB is well-positioned to continue higher. If the current trends continue, BNB could achieve new highs, targeting $1,170. Investors, however, should monitor key support levels to manage risks.
