In the context of the altcoin market preparing for a new growth wave, Binance Coin (BNB) continues to affirm its dominant position in the exchange token segment. Thanks to the appeal from both institutions and the community, BNB is becoming a strategic choice for many large investors, despite short-term volatility.
Absolute Leading Position
At the end of July, BNB set a new all-time high (ATH) before a slight correction and is currently trading around $811. With this price, BNB's market capitalization reaches $114.36 billion, surpassing giants like Nike and MicroStrategy.
According to analyst Daniel Nita, the strength of BNB is not only 'aesthetic' but also comes from its dual role in operating both Binance and the BNB Chain. Additionally, the periodic token burn mechanism along with increased on-chain activity helps make BNB supply increasingly scarce.
Currently, BNB accounts for up to 81% of the total market capitalization of all exchange tokens, indicating that the Binance brand and the BNB Chain ecosystem remain a strong 'magnet' attracting capital, especially in the fields of DeFi, NFT, and RWA.
PancakeSwap – the largest DeFi protocol on the BNB Chain – also directly benefits from this price increase. The rising BNB price leads to significant cash flow into the CAKE token, thanks to the close relationship regarding liquidity and market sentiment.
Institutional Cash Flow Inflow
Not only attractive to individual investors, BNB is becoming a strategic asset for institutions. Recently, BNC (listed on Nasdaq, formerly Vape) spent $160 million to purchase 200,000 BNB, becoming the largest BNB holder institution in the world.
Previously, Windtree Therapeutics also planned to raise $520 million to build a BNB reserve, opening up the 'BNB Treasury' trend in the business world.
Potential to Reach $1,200
Analyst Ali noted that the price structure of BNB currently resembles the volatility pattern of Bitcoin. Based on this observation, he predicts that BNB may be entering the early stages of a new bullish cycle, aiming for a target of $1,200.
However, alongside the positive long-term outlook, data from BeInCrypto shows that when BNB reaches new highs, a segment of mid-term investors has started to take profits. This creates certain selling pressure, increasing short-term volatility. Therefore, analysts advise investors to manage risk closely, especially when using leverage, to avoid liquidation during BNB's strong price fluctuations.
