- Binance Coin (BNB) is nearing a new all-time high after a strong recovery and growth in the Binance Smart Chain’s ecosystem.
- The launch of new projects and robust on-chain activity are driving demand, positioning BNB for potential further gains.
Binance Coin (BNB) is positioning itself as a top contender to achieve a new all-time high (ATH). After recovering from its August lows, BNB has demonstrated remarkable strength, outpacing even leading cryptocurrencies like Bitcoin (BTC). As the native coin of the Binance Smart Chain (BSC), BNB’s recent momentum and the BSC’s expanding ecosystem make it a strong candidate to hit new heights.
BNB’s Price Surge: Closer to a New ATH
BNB traded at $583 at press time, marking a 44.11% increase from its lowest point earlier this month. Like most cryptocurrencies, BNB experienced a dip at the beginning of August, but its swift recovery has brought it back to pre-crash levels. The coin is now just 23% away from reaching a new ATH, a feat that could be within reach if the current trend continues.
One key indicator supporting this bullish outlook is the Relative Strength Index (RSI), which suggests that BNB still has room for further gains before entering overbought territory. With most top cryptocurrencies trading at significant discounts from their ATHs, BNB stands out as one of the few nearing this milestone.
BSC’s Expanding Ecosystem Boosts BNB Demand
The Binance Smart Chain’s growth is another factor driving BNB’s strong performance. The BSC has announced the addition of four new projects to its Builder Program, aimed at expanding the network’s decentralized finance (DeFi) offerings. These projects are expected to create more investment opportunities within the BSC ecosystem, further boosting demand for BNB.
BSC’s total value locked (TVL) peaked at over $22 billion during the 2021 bull market but experienced a sharp decline during the subsequent crypto winter, bottoming out at $164 million in October 2023. Since then, the TVL has rebounded to $4.39 billion as of press time, reflecting a significant recovery. While still below its previous high, this resurgence signals renewed interest in the BSC.
On-Chain Activity: Sustained Growth Despite Market Fluctuations
In addition to TVL growth, BSC’s on-chain volume and transaction activity remain robust. During the last bull run, BSC averaged billions in daily volumes. Though current volumes have stabilized between $400 million and $600 million, the network’s transaction count has held steady, ranging between 2 million and 4 million daily transactions over the past two years. Notably, BSC saw a spike to 12.8 million daily transactions in December 2023, highlighting its capacity for high activity.
With BNB’s strong price action, expanding ecosystem, and sustained network growth, a new ATH seems increasingly likely. As the Binance Smart Chain continues to innovate and attract DeFi projects, BNB’s potential for further gains is hard to overlook.
