The price of BNB (BNB) is once again on the rise after a four-day correction that resulted in a 16% decrease in value. Starting from a low of $500 on March 20, BNB climbed to an intra-day high of $539. As of the time of writing, the price was hovering around $550, showing a 5% increase in the past 24 hours, according to data from CoinMarketCap.
Over the past month, BNB has demonstrated a bullish performance. The layer 1 token has surged by 50% in the last 30 days and 61% in March alone, reaching $645 on March 16. This marks its highest value since November 2021. This rally has brought BNB within 7% of its all-time high of $690, which was achieved on May 10, 2021.
This significant increase has left many traders wondering if the BNB price will reach its all-time highs again. Let’s examine the factors that could potentially drive BNB higher.
Despite facing regulatory challenges in the United States and abroad, Binance crypto exchange, which BNB is associated with, seems to be maintaining its market share. After a tumultuous legal journey in 2022 that resulted in the former Binance CEO Changpeng Zhao stepping down and a $4.3 billion fine for the exchange, Binance has managed to recover its trading volume market share.
Data from CCData reveals that Binance’s market share has continued to rise since October 2023, increasing for the fifth consecutive month to over 40%.
This data is further supported by information from CoinGecko, which indicates that the total 24-hour trading volume on all crypto exchanges amounts to $178 billion, with Binance accounting for $41.7 billion of this on March 20. ByBit comes in second place with a contribution of only $7.5 billion, followed by OKX in third place with $6.5 billion.
The BNB Smart Chain (BSC), which operates on the Binance exchange, is also experiencing increased activity. According to K33 Research, BNB’s price action has resulted in more on-chain activity, reviving the BSC.
Independent analyst and X user Kyledoops observed that the BNB price was trading at $586 before the correction and noted that the growing total value locked on the blockchain is driven by BNB’s surge into price discovery mode.
Data from DefiLlama shows that BNB Chain’s Total Value Locked (TVL) has increased by 54% in 2024, indicating that users and developers are engaging more with the network.
Furthermore, according to DappRadar, the BNB Chain remains a dominant force among layer 1 blockchains, processing 7.07 million transactions in the last 30 days, compared to Ethereum’s 1.2 million transactions.
Using the metric of Unique Active Wallets (UAW), which measures the number of individual crypto wallet addresses interacting with a blockchain’s smart contracts, DappRadar reveals that the BNB Chain leads in total unique address wallets. Over the past 30 days, more than 2 million UAWs have interacted with the layer protocol. This figure significantly surpasses Ethereum’s 585,430 UAWs and Avalanche’s 142,890.
Currently, the BNB price is 21% below its all-time high of $690. According to a report from K33 Research, although Solana (SOL) has gained attention recently, BNB has also made an impressive move this year and is much closer to reaching its record highs.
Independent analyst Batman, in a post on X, noticed that BNB was very close to its all-time highs, with the price trading 20% below the peak at the time of publication. The Moving Average Convergence Divergence (MACD) indicator indicated that the market conditions were still favorable for an upward trend.
The key levels to watch for BNB are $550 and $600. In order for the price to reach its all-time highs at $690 and enter price discovery, the bulls need to turn this supply zone into support.
Please note that this article does not provide investment advice or recommendations. Trading and investing involve risks, and readers should conduct their own research before making any decisions.