Binance Coin (BNB) Hits All-Time High: Soars to $707.05 with $104B Market Cap, Surging 12% in 24 Hours
- Binance Coin (BNB) hit a new all-time high of $711.56, the first since May 2021, with a 12% increase in the past 24 hours.
- BNB’s market cap surpassed $100 billion, and its daily trading volume rose by 62% to $4.18 billion.
Binance Coin (BNB) has achieved a new all-time high, marking a significant milestone for the first time in over three years. The cryptocurrency is currently trading at $705.8, following a 12% increase in the past 24 hours. Earlier today, BNB touched a record high of $711.56, surpassing its previous peak from May 12, 2021.
This recent surge has pushed BNB’s market capitalization beyond the $100 billion mark, a level last seen in December 2021. The daily trading volume for BNB has also spiked by 62%, reaching $4.18 billion. This increase in trading activity signals heightened investor interest and market engagement.
One contributing factor to this bullish trend is Binance’s recent token burn. On April 24, Binance burned 1.94 million BNB tokens, equivalent to roughly $1.17 billion. This reduction in supply has positively impacted the token’s price, bringing renewed momentum to BNB. Currently, there are approximately 147.58 million BNB tokens in circulation.
Increased Volatility and Open Interest
Despite the bullish performance, BNB is experiencing high volatility. Data from Santiment reveals that BNB’s total open interest surged by 32.5% over the past 24 hours, rising from $525.66 million to $696.67 million. This increase indicates that more traders are betting on further price movements, contributing to the volatile trading environment.
Additionally, the funding rate for BNB on Binance has dropped from 0.02% to 0.01% in the past day. This decline suggests an increasing number of traders are wagering on a potential price drop, further adding to market instability.
BNB’s trading volume has also increased substantially, reaching over $4 billion in the past 24 hours. This positions BNB as the sixth most-traded digital asset. The surge in trading activity reflects growing investor confidence and interest in BNB, contributing to its upward price movement.
Launchpad and Launchpool Activity Boosts Demand
BNB’s recent surge can be largely attributed to heightened activity on Binance’s Launchpad and Launchpool platforms. These platforms require investors to purchase and lock up BNB to receive a share of newly released tokens, increasing the demand for BNB. The latest offering, a gaming token named notcoin (NOT) launched on Telegram, has seen a dramatic 140% increase in the past week. This notable performance has attracted considerable interest and investment, driving up the demand and value of BNB.
Options trading has also played a crucial role in BNB’s price dynamics. Many traders are securing put options with strike prices between $550 and $650 as a hedging strategy against potential price drops. Currently, there is $7.5 million worth of open interest in BNB options.
Incentive Programs and Technological Advancements
Binance has introduced the Trading Volume Incentive Program to stimulate trading activity and reward participants with a potential prize pool of $250,000. This initiative aims to incentivize traders and ecosystem partners, drawing more participants to BNB and increasing its trading volume. The program’s success has significantly contributed to BNB’s price rise.
Additionally, the implementation of the Proposer-Builder Separation (PBS) model in the BNB Chain and the adoption of BEP 322 to address Maximum Extractable Value (MEV) have played pivotal roles in BNB’s recent performance.
