BNB, the asset created by the Exchange Binance, does not stop breaking historical price of price after exceeding $ 800.
If you manage to consolidate this upward trend, The native token of the BNB Smart Chain (BSC) network will have enough impulse to reach the 1,000 dollar goala level that its investors have been waiting for years.
Achieving this financial milestone will be the confirmation of BSC ecosystem growth and constant BNB demand.
As observed in the following graph of TrainingViewBNB records a monthly increase that exceeds 30% and, at the time of publication of this note, is negotiated in $ 849.
This solid performance reflects that the asset is gaining land not only for its usefulness within the Exchange, but also for the interest of companies that have incorporated it into their corporate treasury as a reserve asset.
Next, we will analyze the 5 reasons that explain the success of BNB.
1- BNB usefulness in Binance
One of the reasons behind BNB’s good performance is due to Binance leadership as the world’s largest exchango. At the moment, records a daily volume that exceeds 21,000 million dollarsaccording to data of coinmarketcap.
This enormous activity not only gives visibility to Token, but also increases its usefulness within the platform. And this is where BNB becomes essential for many investors and traders because it allows to pay commissions with discounts up to 25% for trading spot (cash) and futures.
That is, it is a key tool for users to reduce costs.
In addition, BNB is necessary to participate in key initiatives of the Binance ecosystem. For example, it is used in Binance Launchpada platform that allows access to exclusive presales of new tokens before they get to the market.
In this case, users must maintain a minimum amount of BNB in their accounts for a given period to qualify and participate in new project tokens presales, which allows them to acquire these cryptocurrencies at preferential prices before they are listed publicly.
In Launchpool, BNB is used to make staking, allowing users to obtain tokens from new projects for free as a reward, without the need to invest directly.
2- Increase of activity in BNB Smart Chain
As Cryptonoticia had reported, the increase in activity ON-CHAIN of BNB Smart Chain anticipated the ATH of the digital asset. An indicator that shows a growing adoption of the network is the increase in daily transactions, which reflects the amount of operations recorded in that environment.
From May 1 to July 28, Daily transactions went from 4.7 million to 10.7 millionwhich represents an increase of 127%.
In addition, the active accounts, which represent the unique purses that interact with the network, They passed From 1.1 million on May 1 to 2.1 million on July 27, an increase of 90%.
This increase in BSC activity generates a greater demand for BNB, both to pay commissions and to participate in staking. That combination Reduce the offer in the market and reinforces the buying pressurewhich contributes to the bunder impulse of the price.
3- BNB deflation scheme
In 2021, BSC launched A deflationary mechanism after the approval of the proposal Bep-95that introduces the real -time burning of the commissions by transaction. Each time a user performs an operation, a fraction of gas rates is eliminated from BNB total supply, while the rest is still intended for validators.
This mechanism reinforces the deflationary nature of BNB, in addition to increasing its value by reducing the circulating offer with each validated block.
As observed in the following graph of TrainingDifferentuntil the end of 2021, the emission rate (violet areas) was positive. This means that new tokens were being added to the supply, a factor that can be bassist for the price of the asset if there is no real demand that accompanies that offer.
Since 2022, the indicator crosses below the zero axis and remains in negative territory for most of the time.
This reflects a negative BNB net emission, which means that more amount is burned than it is issued.
Likewise, the black line that represents the price shows an ascending trend, which suggests that the reduction of the supply could be contributing to the appreciation of the BNB value.
4- BNB institutional investment grows
Another factor that is promoting The BNB price is the growing institutional adoption. As cryptootics, Windtree Therapeutics Inc. and Nano Labs have reported are companies that are quoted in Nasdaq that are accumulating BNB in their corporate treasury to generate extra income through staking.
In the case of Nano Labs, a Chinese company specialized in web3 infrastructure, acquired 74,315 tokens for a value close to 50 million dollars. The firm was set in the long -term objective between 5% and 10% of the Current BNB supply.
This plan would imply withdrawing a significant part of the market, which could generate bullish pressure on its price in the medium or long term.
For its part, Windree will invest a total of 60 million dollars in BNB, with the possibility of expanding the amount to 200 million in future stages.
Institutional adoption reinforces the BNB narrative as a reserve asset and increases its visibility among companies.
5- Macroeconomic context and market rotation cycle
That there is a stable macroeconomic context favors risk assets, such as BNB. This is because financial speculators opt for a stable and without geopolitical tensions to make their investments in this kind of assets.
The most important news is that yesterday, July 27, the United States and the European Union (EU) reached a commercial agreement. So far, the only thing that is known is that there will be a 15% tariff for most EU exports to the US market. There is no information about tariffs for products entering Europe.
Meanwhile, this July 28 began in Stockholm, Sweden, the Meetings Among representatives of the Government of Donald Trump and Chinese officials to negotiate a new extension of the commercial truce. If conversations come to fruition, it will be a bullish factor for cryptocurrencies. If not, there could be a pricing correction.
Here we also have to mention that the good performance of BNB is linked to the good performance that Bitcoin (BTC) is showing, which is lateralizing at $ 118,000, after marking an ATH of $ 123,000.
The good currency performance created by Satoshi Nakamoto It usually expand optimism towards the rest of the market and awakens the appetite for the risk.
Currently, the market is going through a rotation cycle, which occurs when investor money flows from BTC to Ether (ETH), the native currency of Ethereum, and other cryptocurrencies of lower capitalization of the market.
For all this, if the conditions continue to be favorable, BNB will have enough impulse to exceed $ 1,000.
