Exploring the Potential Surge: Factors Driving Binance’s BNB Towards Record Peaks

Exploring the Potential Surge: Factors Driving Binance's BNB Towards Record Peaks

BNB Price Rally: A Closer Look

BNB (BNB) price is heating up again after a four-day correction that saw it lose 16% of its value. BNB climbed from a low of $500 on March 20 to an intra-day high of $539. At the time of writing, the price was hovering around $550, up 5% over the last 24 hours, according to data from CoinMarketCap.

BNB’s performance has been bullish over the last month. The layer 1 token has soared 50% over the last 30 days and 61% in March alone to reach $645 on March 16, its highest value since November 2021. This rally brought BNB within 7% reach of its all-time high of $690 reached on May 10, 2021.

This has left many traders wondering whether the BNB price will return to its all-time highs. Let’s look at the factors that could potentially bolster BNB higher.

Bullish Factors for BNB

1. Binance Exchange Dominance

Binance crypto exchange appears to be holding on to its market share even after regulatory challenges in the United States and abroad marred its operations. After a wild legal ride in 2022 that ended with the former Binance CEO Changpeng Zhao stepping down and a $4.3 billion fine for the exchange, Binance has recovered its trading volume market share.

  • Data from CCData shows that Binance’s market share continued to rise since October 2023, climbing for the fifth consecutive month to more than 40%.
  • According to CoinGecko, Binance accounted for $41.7 billion of the total 24-hour trading volume on all crypto exchanges at $178 billion on March 20.

2. Increased Activity on BNB Smart Chain

Just as the exchange has overcome the negative branding impact of its regulatory challenges, the exchange’s BNB Smart Chain (BSC) is also “making a comeback of its own,” according to K33 Research.

  • Data from DefiLlama shows that BNB Chain’s TVL increased by 54% in 2024, suggesting that users and developers are interacting more with the network.
  • According to DappRadar, the BNB Chain remains a powerhouse among layer 1 blockchains, handling 7.07 million transactions in the last 30 days against Ethereum’s 1.2 million transactions.

3. Proximity to All-Time High

BNB price is currently 21% below its all-time high of $690. The K33 Research report claims that even though Solana (SOL) has stolen the limelight in the recent past, “BNB has had an equally impressive move this year and is significantly closer to record highs.”

In a March 14 post on X, independent analyst Batman spotted BNB very close to all-time highs, saying that the “$BNB price has been on a monster run lately.”

The price was trading 20% below the all-time high at the time of publication. The moving average convergence divergence (MACD) indicator was still in the positive region above the zero line, suggesting that the market conditions still favored the upside.

The key levels to watch above this are $550 and $600. The bulls have to flip this supply zone back into support before pushing the price toward all-time highs at $690 and ushering BNB into price discovery.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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