BNB Bucking Trend, Approaching All-Time High Once More
Text Rebuilt
Kickin' it with Ritika Gupta and Jibin Mathew George
- Share
- Toot it
Hey there, folks! Look at BNB cruising strong amidst the cryptocurrency chaos. With just a 17% distance from its All-Time High (ATH), BNB has already breached the $700-mark twice in 2024.
Compared to other large-cap tokens that are hanging around 40% below their ATH, BNB's resilience is nothing short of impressive. In fact, it's one of the very rare large-caps that managed to log new highs during the last year's "Trump pump." The only other altcoin that can say the same is Solana (SOL), but it's a whopping 47% away from its ATH.
But what makes BNB stand out? Is there a less noticeable, yet massively impactful element helping it break free from the pack? Something you shouldn't be snoozing on?
Market Discord - BNB's Resilience Isn't Just a Fluke
No doubt, the 2021 cycle was a pivotal breakthrough for altcoins. Popping their first monumental parabolas. Ethereum [ETH] smashed through the $4k barrier, and even Dogecoin [DOGE] caught fire, skyrocketing to $0.73 in a historic Doge-powered rally.
BNB jumped on the train too, reaching just shy of $700 at the cycle's peak. However, while most top-tier tokens have been struggling to reclaim those levels, BNB has faced the challenge and triumphed—breaking its previous high not once, but twice in 2024. It even touched a new ATH of $793 in early December.
As we speak, it's close to 17% away from testing that peak again. According to our analysis, BNB's fundamentals have been strong as an ox too. Derivatives liquidity hasn't gotten too hot, TVL hit a three-year high above $6 billion, and stablecoin supply reached a two-year pinnacle. These clues suggest that a significant chunk of capital is eager to dive in.
On both the technical and on-chain fronts, BNB's resilience makes perfect sense. Demand is still high, with a considerable portion of tokens locked in staking, keeping supply regulated. However, beyond the numbers, BNB's smart economics and solid tokenomics are what keep it ahead of the game.
Triple Threat - Burns, demand, and increased earnings
In addition to robust fundamentals, the true worth of any coin comes down to supply and demand. BNB's numbers appear to be solid as a rock. BNB began its journey with 200 million tokens and Binance swore never to produce more. What sets BNB apart is the repeated token burns, where chunks of tokens get obliterated every few months. The goal? Bring down the total supply to 100 million, half of what it started with.
Each burn usually eliminates between $800 million and $1 billion worth of BNB, based on the token's price at the time. So far, over 60 million tokens have been incinerated, leaving around 140 million in circulation.
Moreover, a good chunk of these tokens is staked or locked up within the Binance ecosystem, which means even fewer are circulating freely. This scarcity, coupled with a controlled supply, supports BNB's price over the long run. Compared to other top-tier tokens with gigantic circulating supplies, BNB's tight supply dynamics shine bright.
That's why it's crystal clear that Binance Coin is bucking the broader altcoin-led downtrend and inching closer to its ATH once more.
- Subscribe to our must-read daily newsletter Will Chainlink surge beyond $14 and drive a market scramble? - Analyzing...
- Share
- Toot it
Additional Details:
The Magic Trifecta - Ecosystem Strength, Macro Factors, and Innovation
- Binance Ecosystem Power: Binance's dominant position as a top-notch exchange gives BNB a potent boost. The token plays a crucial role in reducing trading fees and participating in Binance's launchpad, amplifying its appeal[2][5].
- On-Chain Activity: A thriving ecosystem based on the Binance Smart Chain (BSC) lends additional strength to BNB thanks to high DEX volumes and heavy user engagement[4].
- Favorable Macroeconomics: Lower interest rates anticipated by the Fed and institutional capital inflows from European fiscal policies indirectly aid BNB's growth by boosting crypto adoption[4].
- Shining New Features: Introduction of AI-based portfolio management tools and streamlined wallet operations are expected to elevate user experience and attract more investors[5].
- Ritika Gupta and Jibin Mathew George discuss the resilience of Binance Coin (BNB) amidst cryptocurrency chaos, with BNB nearly reaching its All-Time High (ATH) twice in 2024.
- Compared to other large-cap tokens, BNB's performance has been impressive, even managing to log new highs during the 2021 "Trump pump," a feat only shared by Solana (SOL).
- The strength of BNB's fundamentals is evident, with derivatives liquidity, TVL, and stablecoin supply reaching significant highs, suggesting a strong demand for the token.
- BNB's repeat token burns, where millions of tokens are destroyed every few months, help to regulate the supply and support the token's price over the long run.
- Beyond the numbers, BNB's smart economics and solid tokenomics keep it ahead of the game, making it less susceptible to the broader altcoin-led downtrend.
- Future innovations within the Binance ecosystem, such as AI-based portfolio management tools and streamlined wallet operations, could further attract investors to BNB and boost its growth.
