Binance Coin (BNB), the native cryptocurrency for the layer-1 BNB Chain, has become one of the top gainers within the past week. The asset has seen a decent 6% increase to a trading price of $378 over the last seven days despite a sluggish performance for the overall crypto market during the same period. What is the secret behind BNB’s growth? Here are three key drivers:
Why is BNB Increasing?
BNB’s growth springs from some recent activities within the BNB Chain ecosystem. One was the launch of Binance’s 47th project on its launchpool. On February 21st, Portal, a cross-chain gaming platform, was deployed on Binance’s launchpool. The move enabled BNB and FDUSD holders to stake their cryptocurrencies in pools to farm PORTAL tokens.
According to on-chain analysis from blockchain research team Arkham, the BNB Chain has seen over $400 million cash influx from investors within 24 hours. These funds were poured into farming PORTAL tokens. The largest crypto whale among these sent a whopping $40 million.
Another key driver behind BNB’s recent surge is the onboarding of the decentralized lending platform Aave to the BNB Chain. The move follows discussions about a potential integration. On February 22nd, Aave joined a cohort of top DeFi projects building on the BNB Chain. With a total value locked (TVL) of over $8.5 billion at press time, Aave positions itself as the largest DeFi lending protocol. The lending platform is now available on 12 blockchain networks.
BNB Trades at $378
BNB’s third key driver is its technical chart. In June 2023, BNB saw a significant plunge below the $300 price mark. The downtrend came when Binance faced a lawsuit against the United States Securities and Exchange Commission (SEC). In August 2023, the price downturn deepened as Binance revealed plans to shut down its buy-and-sell service, Binance Connect. The product launched only a year earlier under the name – Bifinity.
Things began looking up for BNB between November and December as it broke out of its lows. The price uptrend continued despite a change in leadership within Binance. Presently, Binance Coin (BNB) trades at $378, representing a 6.29% increase in the past seven days.
Source: CoinStats
