Binance Coin (BNB) has faced its fair share of challenges, including market volatility and the SEC lawsuit against Binance and its founder Changpeng Zhao (CZ), which led to a significant decline earlier this year. However, recent developments indicate a remarkable recovery and promising prospects for BNB.
Driving Factors Behind BNB’s Price Rally
One of the key factors contributing to BNB’s price rally is the growing usage of decentralized applications (DApps) on the Binance Smart Chain (BSC). Data from DappRadar reveals a surge in DApp volume, currently 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, reflecting a 12.73% surge.
Comparing BNB to Ethereum (ETH), BNB outperforms in various indicators such as contracts, total unique active wallets (UAW), decentralized finance (DeFi) total value locked (TVL), and non-fungible token (NFT) volume. This superior performance positions BNB as a dominant player within the BSC ecosystem, driving its demand.
BNB’s market cap figures further contribute to its positive momentum. According to Token Terminal data, BNB has a circulating market cap of $48.02 billion, marking a 14.18% increase. The fully diluted market cap stands at the same value, reflecting a 28.32% growth.
Additionally, BNB has recorded notable increases in revenue. In the past 30 days, the revenue generated by BNB has grown by 28.51%, reaching $1.47 million. The significant fee growth of 27.98% over the same period, with an annualized revenue of $187.56 million, highlights the robust fundamentals backing BNB.
While BNB’s recovery and positive market sentiment are evident, there is a bold prediction by a prominent crypto analyst, Captain Faibik, that could further bolster the token’s outlook. Faibik suggests that BNB is poised to achieve a new yearly high in the first half of 2024.
Based on an analysis of BNB’s 1-week chart, Faibik identifies a breakout from a descending triangle pattern, signaling the end of the macro downtrend and initiating a new uptrend phase for BNB. According to Faibik’s projections, 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 come to fruition. 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. Reaching the all-time high would require surpassing additional macro resistance levels, including $329, $402, $450, $563, $607, $639, and $653.
While the theory proposed by Faibik holds promise, it remains to be seen whether Binance Coin will achieve a new yearly high in the early months of 2024 and sustain an uptrend.
Despite the challenges faced earlier this year, Binance Coin has demonstrated a strong recovery, driven by the increasing usage of DApps on the Binance Smart Chain. The superior performance of BNB in various indicators, impressive market cap figures, and increased revenue contribute to its positive market sentiment.
While a bold prediction suggests a promising future for BNB, it is important to approach it with caution. Overcoming multiple resistance levels will be crucial for BNB to achieve a new yearly high. As with any investment, it is advised to conduct thorough research and consider the risks involved before making any decisions.