With not-so-easy moves, Binance Coin (BNB) has returned to a price above $700, after surpassing this threshold and reaching $737 on July 17, recording a modest increase of 2.3% in one day. Although this increase is not particularly impressive, it is also a sign of recovery after sharp declines in Q2. However, the question remains: Can BNB maintain this growth momentum in a volatile market?
Positive growth, but not outstanding
In July, Binance Coin increased by about 10%, a rather decent figure for a major cryptocurrency. However, compared to other altcoins, BNB's increase is somewhat modest. Other leading coins such as Ethereum (ETH), Solana (SOL), and Polygon (POL) have recorded outstanding growth, with some even growing more than 20%. Notably, in the past month, nearly $140 billion in new money has flowed into the altcoin market, raising the total market capitalization to $1.47 trillion. Among them, BNB accounted for only $4 billion, an impressive figure but still the smallest increase among the top five cryptocurrencies.
This leads to a notable phenomenon: BNB's market dominance is declining. BNB's dominance rate is currently only 2.6%, down significantly from 3.4% in mid-March. This shows that although BNB is still rising in price, this coin is gradually being left behind in the race of altcoins.
Highlights that cannot be overlooked
Although BNB is struggling to maintain its leading position, it cannot be denied that there have been significant technological advances and ecosystem development. One of the recent highlights is the Maxwell upgrade on the BNB Smart Chain, which improves performance with block processing time reduced to just 0.75 seconds and network throughput doubled. This is a welcome improvement, especially for developers building applications or tokenizing real assets.
In addition, Binance's Zero Fee Carnival program has been extended until the end of July, allowing users to transfer USDT and USD1 without incurring fees. This program has strongly boosted the use of the BNB network while increasing interaction and trust from the community.
Another sign of BNB's development is that tokenized stocks are now available on the BNB Chain through a partnership with Kraken and Backed Finance, launching the xStocks product. This demonstrates that Binance is gradually expanding the use of BNB, not only in cryptocurrency transactions but also into traditional finance sectors.
Institutions are looking for opportunities, but whale investors are withdrawing?
An interesting point in BNB's development is the participation of large institutions. Recently, Windtree Therapeutics announced plans to raise $200 million to launch a BNB fund, while also aiming for a public stock listing. This is a move that could help Binance Coin officially enter the Wall Street stock market, opening up a new opportunity for development and growth.
However, there is a notable anomaly: the number of wallets holding more than 10,000 BNB is gradually decreasing and has now hit a three-month low. While other major coins like Solana are witnessing strong growth in wallet numbers, BNB holders are showing signs of withdrawal. This indicates that whale investors may be cutting back on their participation in BNB, although this coin still maintains stability and high liquidity.
Nevertheless, a positive signal is that Binance has just completed its 32nd token burn, destroying 1.59 million BNB worth over $1 million. This contributes to tightening supply, facilitating BNB's long-term value growth.
Technical analysis: Current situation and future prospects
Currently, BNB is trading at $737.7. On the technical chart, the upward momentum looks quite positive, as the price has surpassed key moving averages and the MACD indicator is flashing strong bullish signals. The RSI is currently at 79.39, indicating that BNB may be slightly 'overbought', but it has not yet reached a level strong enough to signal a clear reversal.
The nearest support level for BNB is at $643.71 and $601.25, while the current resistance level is at $736.56. The 52-week high is $749.72, a potential price that BNB could reach if the upward momentum continues.
Overall, BNB is still maintaining a fairly good technical state, but in a vibrant altcoin market, it will need to make further efforts to stand out. Other coins are attracting more capital and attention, so the question now is: Can BNB catch up or is it gradually losing its advantage? Only time will answer this question.
Binance Coin is currently undergoing a period of stable growth, but it is not the 'bright star' in the cryptocurrency world. Nevertheless, technological improvements, ecosystem expansion, and promotional programs are still helping this coin maintain a solid position. However, without stronger moves to solidify its market position, BNB may gradually be left behind as other altcoins continue to break through.
