BNB Chain’s improving fundamentals and use cases beyond DeFi support BNB run to $600
2024.09.13 17:40
The price of BNB (BNB) rose 7% between Sept. 11 and Sept. 13, trading above $550 for the first time in over two weeks. This movement significantly outperformed the 2% gains seen in the broader altcoin market capitalization during the same period, indicating specific drivers related to BNB Chain and Binance exchange.
BNB/USD (right) vs. altcoin market cap (left). Source: TradingView
From a broader perspective, BNB has struggled to maintain levels above $600 over the past three months. However, this has been sufficient to solidify its position as the third-largest cryptocurrency, excluding stablecoins. The last time Solana (SOL) overtook BNB was on Aug. 8, and the current gap remains a comfortable $17.7 billion.
CZ’s release from US custody and Binance Launchpad developments
According to X user MJ, the BNB price surge is partly driven by Binance’s founder and former CEO, Changpeng “CZ” Zhao, being released from custody on Sept. 29.
Source: peach_1340
A US federal judge sentenced the former Binance CEO to four months in prison after he pleaded guilty to failing to maintain an effective Anti-Money Laundering program while overseeing the crypto exchange. CZ was taken into custody on May 31 but was recently transferred to a residential reentry facility in California.
Additionally, MJ cites the upcoming BNB restaking program and two new Binance launchpad pools are contributing factors to the increase.
The Hamster Kombat (HMSTR) launchpool will run for three days, allowing users to stake both BNB and FDUSD. The Telegram mini-app game reportedly has over 100 million players, and Binance will distribute 3 billion HMSTR tokens to depositors.
In Hamster Kombat, players assume the role of a cryptocurrency exchange CEO, aiming to grow the company through strategic investments, upgrades, and participation in daily challenges. The goal is to earn HMSTR tokens, and no downloads beyond the Telegram app are required.
Similarly, the Catizen (CATI) Binance Launchpad will run for four days. This cat-themed gaming platform, also on Telegram, will distribute 90 million CATI tokens to BNB and FDUSD depositors. As for the BNB restaking program, there is no official confirmation from Binance at this time, with only rumors circulating.
Increasing BNB Chain activity includes projects beyond DeFi
Attributing the BNB rally solely to launchpads and anticipation of an official BNB restaking program overlooks a key aspect of the token’s value—its demand within BNB Chain applications. Beyond decentralized finance (DeFi) cases, a BNB payment processing fee is required for every smart contract executed on the network.
Some successful BNB Chain applications include Cellula, an immersive metaverse game where users create and evolve digital assets in the form of non-fungible tokens (NFTs); StarryNift, a multiplayer metaverse with gaming and social networking features; QORPO World, a gaming platform with an integrated NFT marketplace and Web3 wallet; and ApeBond, an on-chain launchpad for upcoming projects.
In the week ending Sept. 13, volume on BNB Chain decentralized applications (DApps) rose 12% to $5.45 billion, according to DappRadar. By comparison, Ethereum saw a 23% decline in volume during the same period, while Ton Network remained flat at $645 million.
Related: SEC expands Binance lawsuit: AXS, FIL, ATOM now securities
BNB chain top Dapps ranked by 7-day volumes, USD. Source: DappRadar
BNB Chain highlights include a 26% increase in PancakeSwap’s transacted volume and an 88% gain in Avalon Finance. On the other hand, 0x Protocol saw the steepest drop, with an 86% decline in volume compared to the previous week. In terms of active addresses interacting with BNB Chain DApps, the number grew by 20%, according to DappRadar.
Notable highlights include Balance, a Web3 gaming platform, which reached 87,350 active addresses, and GombleGames, an app transforming Web2 classics into immersive Web3 adventures, which amassed 19,170 active addresses within 7 days.
The recent increase in BNB Chain activity, including use cases beyond DeFi, has been a crucial factor in supporting the recent BNB price surge. With strong expectations surrounding CZ’s release and the rumored BNB restaking program, the chances of BNB reaching $600 in the near term appear promising.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
