BNB Rallies Strong
BNB, the native token of Binance’s BNB Chain has seen an exponential price increase over the past 24 hours, reaching a new all-time high of $794. Data from the BNB/ USDT pair on Tradingview showed that BNB’s value rose by 27% with the altcoin surging from $622 to $794 within the time period.
The increase in BNB’s price coincides with the total value locked (TVL) rising from about $3 billion at the start of the year to $5.85 billion, according to data from Defillama.
The price increase saw BNB briefly rise above solana (SOL) to become the fifth-largest digital asset by market capitalization with a $112 billion market cap. However, it was short-lived with SOL regaining the fifth spot, as BNB experienced a price correction to trade at $738 with a $106 billion market cap.
Comparably, open interest on BNB derivatives contracts which measures the quantity of unsettled futures and options contracts has lately risen to a record high. According to data from Glassnode, BNB’s open interest increased to $955.2 million from approximately $393 million at the start of October. Its volume also increased by 301% to $6.4 billion which points to increased market activity and rising token speculation interest.
Crypto analyst, Ali Martinez shared that “$ BNB could be about to break out. I’m waiting for a weekly close above $662 for a potential move to $1,630!”
Some supporters believe BNB’s impressive rally is a reflection of the strength and resilience of the Binance ecosystem with Binance’s quarterly BNB burns reducing the token’s supply, increasing scarcity, and supporting its value.
