The BNB token, the native cryptocurrency of the BNB chain, has shown stability despite its recent price fluctuations. Although its price declined over the past month, its movements in June had a negligible impact.
This relative stability can be attributed to strong support from long-term holders (LTHs) and the ongoing growth of BNB use cases, particularly within the decentralized finance (DeFi) sector.
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Long-term investors (LTHs) are one of the key factors behind BNB's price stability. These investors, who hold their assets for long periods, exert a significant influence on the market. In the case of BNB, their minimal selling activity has been beneficial for the asset.
This activity indicates that LTH coins have rarely changed their positions over the past five months, and the continuous decline in the index suggests this. The decrease in LTH coin movements helps prevent large sell-offs, providing a fundamental price support. This stability creates an environment conducive to gradual recovery, allowing BNB to maintain price stability.
Another critical factor contributing to the stability of BNB's price is its role in the wider cryptocurrency market. The total value locked (TVL) of the BNB Smart Chain (BSC) is $5.95 billion, significantly contributing to BNB's ongoing growth and stability.
BNB's dominance in the decentralized finance (DeFi) sector is one of its most significant advantages compared to other cryptocurrencies, such as XRP, which still lags behind in this sector. With over 900 protocols operating on BSC, the use of BNB continues to expand, ensuring ongoing demand for it in the decentralized finance market. This increasing usage contributes to solidifying BNB's position as a leading digital currency.
Nevertheless, the strength of XRP lies in institutional demand for it, an area where BNB has not yet gained significant momentum. The appeal of XRP among financial institutions and its potential for widespread adoption in cross-border payments make it a strong competitor in the market.
In the coming months, institutional demand for XRP may surpass BNB's dominance in the decentralized finance space, potentially creating challenges for BNB's long-term growth.
The price of BNB holds up in the volatile market
The price of BNB has remained relatively stable, hovering around $651 despite market fluctuations. This stability, with only a 1.5% decline over the month and a 5.6% drop since the beginning of 2025, is a positive indicator, allowing room for recovery. The alternative currency has shown resilience in the face of market volatility and is likely to experience a rebound.
However, the currency is currently facing a downward trend that may weaken its upward momentum. Breaking this downward trend is essential for BNB's continued growth. The key support level for BNB is $646, and a rebound from this level may help the cryptocurrency break through the resistance level at $667.
BNB has struggled to break through this resistance level since May, but if the price can convert $667 into a support area, it may pave the way for further gains. On the other hand, if market conditions worsen overall, BNB may see a decline below $646.
In this scenario, the next support levels are at $628 and $615. If BNB breaks through these levels, it may invalidate bullish expectations, putting its price under pressure and potentially prolonging the downward trend.