The BNB price has rallied this year and is hovering near its all-time high. Binance Coin was trading at $1,018 on Wednesday, up by over 100% from its lowest level in March this year. This article highlights some of the key reasons why the BNB token has reached a record high in September.
BSC Chain Growing Ecosystem
One of the primary reasons why the BNB price has surged is that the BNB Smart Chain network is one of the most active in the crypto industry.
Data compiled by DeFi Llama shows that the total value locked in its decentralized finance ecosystem has jumped to over $11.67 billion, its highest level since March 22. The top dApps in the ecosystem include PancakeSwap, Lista DAO, Venus, and Aster.
More data shows that the decentralized exchange networks on its platform are some of the most active. They handled over $4.3 billion in the last 24 hours, with PancakeSwap being the most active.
Further data reveals that the stablecoin supply in the network has jumped by over $295 million in the last seven days to $11.8 billion. Most of the tokens in the network are Tether, USD1 from World Liberty Finance, and USD Coin.
The ongoing ecosystem growth has led to a sharp increase in the number of transactions and active addresses. Transactions rose by 25% in the last 30 days to 371.5 million, while active addresses rose by 8.1% to 35.8 million.
BNB Token Burns
Another reason the Binance Coin price has jumped is that it is one of the most deflationary tokens in the cryptocurrency industry.
Data by BNBBurn shows that the network has burned 724 BNB tokens in the last seven days and 269,661 since inception. At the current price, these real-time burns are worth about $274 million.
The network also conducts quarterly token burns worth about $1 billion. Its goal is to reduce the number of BNB tokens in circulation to about 100 million. These token burns help boost the price by reducing the inflationary pressure.
Potential Changpeng Zhao Pardon
Another potential catalyst for the BNB price is a potential pardon of Changpeng Zhao by President Donald Trump. Data on Polymarket shows the odds of such a pardon happening have jumped to 64%. In a recent note, Amanda He of ChainUp said:
“The market believes that a pardon could help CZ, Binance, and BNB clear most regulatory concerns,”
BNB Treasury Companies and ETF Approval Hopes
Meanwhile, companies like CEA Industries, Nano Labs, and Windtree Therapeutics are accumulating BNB tokens, and more others will likely follow. This accumulation is likely to lead to increased demand.
Moving into BNB Treasuries makes sense because these companies will start earning staking returns almost immediately.
At the same time, there is a chance that the SEC will approve spot BNB ETFs by the end of the year, leading to increased demand.
BNB Price Has Strong Technicals
The three-day timeframe chart shows that the token has strong technical indicators. It has surpassed all moving averages and the key resistance level at $796, its highest level since December 5 last year.
The coin formed a cup-and-handle pattern, which is a common continuation sign. Therefore, the most likely scenario is where it continues rising, potentially to the important psychological level of $1,500.
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