Binance Coin (BNB) has been through a rollercoaster ride this year, facing challenges such as market volatility and the SEC lawsuit against Binance and its founder Changpeng Zhao (CZ). However, despite these hurdles, BNB has shown remarkable recovery and promising prospects. In this article, we will analyze the recent price movements of BNB and explore the factors contributing to its resurgence. We will also delve into the future potential of BNB, considering its fundamentals and market performance.
After reaching an all-time high of $350 earlier this year, BNB experienced a sharp decline to the $203 level following the SEC lawsuit. However, the tide has started to turn, and recent price movements indicate a notable recovery and bullish sentiment. Over the past 24 hours, BNB has gained 4.5%, and its performance in the seven, fourteen, and thirty-day time frames demonstrates an upward trend, with gains of 20%, 24%, and 38%, respectively.
One of the key driving factors behind BNB’s price rally is the growing usage of decentralized applications (DApps) on the Binance Smart Chain (BSC). According to data from DappRadar, there has been a surge in DApp volume on the BNB chain, currently standing at $4.83 billion, representing a 12% increase. The BNB chain boasts an ecosystem of 5,120 DApps and has recorded 4.89 million transactions in the past seven days alone.
Comparing BNB to Ethereum (ETH), DappRadar data highlights BNB’s superior performance in various indicators such as contracts, total unique active wallets (UAW), decentralized finance (DeFi) total value locked (TVL), and non-fungible token (NFT) volume. These figures indicate a growing demand for BNB as it serves as the primary token within the BSC ecosystem.
The positive momentum of BNB is further bolstered by its impressive market cap figures. According to Token Terminal data, BNB has a circulating market cap of $48.02 billion, marking a 14.18% increase. Furthermore, BNB’s fully diluted market cap stands at the same value, reflecting a 28.32% growth. The revenue generated by BNB in the past 30 days has also seen a substantial increase of 28.51%, reaching $1.47 million. Additionally, BNB has recorded significant fee growth, with a 27.98% increase over the past 30 days and an annualized revenue of $187.56 million.
These strong fundamentals contribute to the positive sentiment surrounding BNB and solidify its position as a prominent cryptocurrency.
While BNB has already staged an impressive recovery, there is a bold prediction by a prominent crypto analyst, Captain Faibik, that could further boost the sentiment and excitement surrounding the token. According to Faibik’s analysis of BNB’s 1-week chart, there is a breakout from a descending triangle pattern, signaling the end of the macro downtrend and initiating a new uptrend phase for BNB.
Faibik suggests that BNB’s price could potentially experience an impressive uptrend of 171% in the initial weeks of 2024, surpassing the current all-time high (ATH) of $686. However, it is important to note that several resistance levels must be overcome for this projection to materialize. At the current trading price of $307, BNB faces a significant seven-month resistance barrier, hindering its ascent to the $314 level, the next resistance level in the near term.
Analyzing the 1-day chart, we see that reaching the all-time high level would require surpassing additional macro resistance levels, including $329, $402, $450, $563, $607, $639, and $653. While the theory proposed by Faibik holds promise, the actual realization of Binance Coin’s new yearly high in the early months of 2024, along with a sustained uptrend, remains to be observed.
BNB has showcased a strong recovery, driven by the increasing usage of DApps on the Binance Smart Chain and supported by impressive market cap figures and revenue growth. The future potential of BNB looks promising, with a bold prediction suggesting a new yearly high in the first half of 2024. However, the realization of this projection and the sustainability of BNB’s uptrend are subjects that require ongoing observation. As always, it is crucial for investors to conduct their own research and make informed decisions when considering any investment opportunities within the cryptocurrency market.