Binance’s token BNB has smashed a new ATH. This is crucial amid recent price surges in Ethereum and Solana, driven by renewed interest in the DeFi and NFT ecosystems these platforms pioneered. While ETH maintains its dominance as the leading smart contract platform, Solana, on the other hand, has gained traction as an alternative L1 due to its high throughput and low fees. However, the more intriguing narrative is that the Binance token smashing past ATH.
Often regarded as an underdog to ETH DeFi dominance, BNB’s price action indicates that the market’s sentiment towards the token might be shifting. Market experts doubled down on the token’s potential to play a key role in the Altseason uprising. Despite being less popular than ETH or SOL, BNB’s ecosystem has integrated notable dapps and recorded a high user activity or so in the previous cycle. Some of these are PancakeSwap, Venus, Trust Wallet, Alpaca Finance, etc.
Sustaining high velocity and revenue accrual to key dapps would further validate the BNB investment thesis. Ultimately, while speculative, the confluence of ETH/SOL DeFi pumps combined with the token’s breakout sets the stage for a potential alt season centered around the ecosystem.
Bybit’s BNB Perpetual Contact Drama
If the token continues the momentum, experts feel that it could lead to a “BNB-Beta” run, and people might start investing in other projects on the Binance Smart Chain. Examples of notable projects include coins like the FLOKI, CAKE, AI, ID, TWT, XVS, BEL, and WHY. From an on-chain perspective, experts recommend monitoring the coin’s transaction volumes, DEX activity, lending/borrowing rates, and protocol revenue to gain insights into whether this narrative is materializing.
While BNB is on the price discovery path, the price of the coin on Bybit Perpetual Contact unexpectedly lost -5% in just a few minutes. On-chain sleuths cited the drop to a wave of liquidations of long traders, especially those who used large leverage. “Such a sharp drop was not observed on any other exchange, as well as on the BNB/USDT spot pair on Bybit itself”, he wrote.
