Binance's BNB Hits New All-Time High

The 5th largest cryptocurrency by market capitalization, Binance's BNB, is celebrating this week. It has indeed reached a price of 805 dollars, an all-time high. This is a last surge of 17% over the week that allowed it to surpass the symbolic threshold of 800 dollars:

The rise in the price of BNB is part of a context of euphoria in the altcoin market. Solana's SOL has gained 22% over the week, while Dogecoin (DOGE) has exploded by 32%.

But this does not fully explain the strong performance of BNB, whose market capitalization has again surpassed that of SOL. This morning it stands at 110 billion dollars, compared to 08 billion dollars for Solana's asset.

Reasons for This New Record

Several reasons have combined to drive the price of BNB. First of all, there has been significant institutional buying: Nano Labs purchased 120,000 BNB this week on the OTC market, which directly contributed to the surge.

Additionally, it is noteworthy that the price of BNB had surpassed the threshold of 690 dollars, which it historically struggled to exceed. This thus created a momentum effect, leading to further increases.

Beyond speculative factors, it is also important to highlight the dynamism of the BNB Chain lately, which is itself fueled by BNB. The blockchain saw a record in June, with 311 billion dollars in volume over a month. And while these volumes have been pointed out as concerning, they have certainly contributed to boosting the price of the cryptocurrency.

Furthermore, there are mechanisms specific to BNB, which operates with a deflationary monetary policy and regular cryptocurrency ‘burns’. The preeminent position of Binance in the ecosystem is also, of course, at play. In the second quarter, the exchange platform accounted for more than 35% of global spot volumes, far ahead of its competitors.

Source: TradingView