BNB Chain Crosses $400, Fueled by Multiple Growth Factors
BNB Chain’s native token, BNB, has crossed the significant threshold of $400, marking a notable milestone and solidifying its position as one of the leading cryptocurrencies. This surge can be attributed to several key factors contributing to the overall growth of the BNB Chain ecosystem.
1. Growing DeFi Activity Boosts BSC TVL
BNB Chain’s Total Value Locked (TVL) has seen a steady rise throughout 2024, reaching $4.88 billion at the time of writing. This signifies a significant increase compared to the $3.48 billion recorded at the beginning of the year, showcasing the expanding presence of decentralized finance (DeFi) protocols on the chain, according to data from DefiLlama.
2. Increased On-Chain Activity
On February 28th, BNB Chain witnessed a significant surge in on-chain volume, reaching a peak of nearly $1.4 billion. This represents the second-highest daily volume recorded on the chain in over a year and the highest volume observed in 2024, as per DefiLlama. This spike in activity indicates heightened user engagement and potential growth within the ecosystem.
3. Binance VIP Program Expansion
Binance recently expanded its VIP program to encompass traditional asset trades, catering to high-volume investors, including new crypto users and standard asset users. This move is expected to attract individuals who have previously withdrawn from the crypto market due to volatility and regulatory concerns. The program requires a minimum trading volume of $1 million to qualify for VIP status.
This expansion aligns with Binance’s previous efforts to bridge the gap between traditional and crypto markets. Notably, the June 2023 launch of the tokenized stock trading program offered users the ability to trade shares of popular companies using crypto tokens with 24/7 availability.
4. PORTAL Airdrop Farming Hype
The recent rally in BNB’s price can be partially attributed to the excitement surrounding the airdrop farming campaign initiated by the web3 gaming project Portal. Binance’s Launchpool integration enabled users to participate in Portal’s PORTAL token airdrop, further driving interest and activity within the BNB Chain ecosystem.
5. Positive Crypto Market Sentiment
The broader crypto market sentiment has also played a role in BNB’s positive performance. Bitcoin’s recent surge above $60,000, coupled with a total market capitalization exceeding $2.28 trillion, signifies improved investor confidence. Additionally, the Fear and Greed Index currently sits at 80, indicating “extreme greed” among investors, further contributing to the bullish momentum.
Technical Analysis (BNB/USD)
Bullish indicators:
- Price action is currently above both the 50-day and 200-day moving averages, indicating an upward trend.
- The Relative Strength Index (RSI) has reached 75, suggesting the asset might be nearing overbought territory.
Resistance levels: The immediate resistance level lies around $420, followed by the psychological level of $450.
Support levels: The first support level sits around $380, followed by the recent low of $365.
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