BNB reached a new all-time high of $1,114.67 this Friday (3), driven by a short squeeze and reduced fees on the network, resulting in the strongest rally among major cryptocurrencies.

According to CoinGecko, at the time of publication, the token was trading at $1.108, registering a 6.1% increase for the day and accumulating a weekly gain of 17.2%.

Among the ten largest cryptocurrencies in the market, BNB leads the gains, outperforming Bitcoin (+1.5%), Ethereum (+2.5%), XRP (+1.8%) and Solana (+2.7%), while Dogecoin showed a decrease of 0.6%. Its market capitalization now exceeds $154 billion, maintaining the fourth position in the global ranking.

According to Dean Chen, an analyst at the brokerage Bitunix, over $7.7 million in short positions were liquidated, causing a short squeeze and accelerating the appreciation. He also highlighted that the reduction of fees on the BNB Chain to just $0.005 per transaction attracted more users and developers. The break of resistance at $1,084 reinforced the optimistic sentiment, with projections aiming for $1,200.

Despite this, Chen warned that the RSI is nearing the overbought zone, indicating the possibility of a correction in the short term.

A report from Animoca Brands shows that, in a year, the monthly active users of the BNB Chain doubled to over 2 million, while daily transactions grew from 1 million to 10 million. Meanwhile, activity in spot DEXs surged from 120,000 to over 200,000.

For Illia Otychenko, chief analyst at CEX.IO, the surge in BNB is the result of a combination of 'network updates, on-chain growth, and increased institutional demand.' He added that new improvements are expected in the coming months, which is likely to further strengthen the positive outlook.

The Aster effect

Projects like Aster and PancakeSwap 'have driven a wave of new users and capital, raising the supply of stablecoins by nearly $2 billion, or 17%, in the last two weeks,' added Otychenko.

Aster is a multichain perpetual futures exchange backed by YZi Labs, co-founded by Binance's CZ, while PancakeSwap is the largest decentralized exchange on the BNB Chain for token swaps and liquidity staking.

In addition to the fundamentals of the network, 'speculation around a possible spot BNB ETF in the U.S. and the new demand for BNB as a treasury asset' also fueled the rally, noted the analyst, 'reinforcing the token's positioning as more than just a utility asset.'

Chen stated that the long-term path of BNB depends on whether network updates generate 'sustained demand' and how 'global regulatory developments — especially the stance of the U.S. Securities and Exchange Commission (SEC) — impact institutional adoption.'

He classified the overall moment as 'positive', but advised that 'investors should watch if the support zone between $1,000 and $1,084 holds to confirm the continuation of the uptrend.'