BNB, the fourth-largest cryptocurrency by market capitalization, has set a new historic high today after skyrocketing past the $700 key level. BNB is the native token of the BNB Chain ecosystem. The token registered a record price of $710.86, a gain of over 8.4% in the past 24 hours. In so doing, BNB outperformed the wider crypto market, which climbed 2.3% during the same timeframe.
BNB Bulls Back In Charge
After hitting a new all-time high, Binance’s BNB token surprised the crypto market today. CoinGecko data shows that BNB’s market cap is nearing $110 billion, which puts the token ahead of major Wall Street companies such as UBS, Dell, and Starbucks.
Notably, there is no clear fundamental catalyst behind BNB’s price outperformance today compared to the rest of the crypto market. Nonetheless, some commentators suggested that the token’s price was benefiting from the years of token burns and token lock initiatives for their Launchpool program. The platform lets users participate in new token offerings on Binance, the world’s largest exchange by volume, by holding and staking BNB.
Burns are the permanent removal of coins from the circulating supply by sending them to an inaccessible wallet. Since 2021, these burns have been based on eliminating a portion of the gas fees spent on BNB Chain transactions. The BNB burns will be stopped when the total circulation of BNB falls below 100 million. Currently, BNB has a 154 million circulating supply.
The BNB price has been somewhat of a laggard in recent years possibly due to Binance’s regulatory challenges in several jurisdictions, including the U.S., Nigeria, and the Philippines. Last November, Binance reached a $4.3 billion settlement with U.S. regulators for money laundering and sanctions violations. Changpeng “CZ” Zhao, the exchange’s founder, pleaded guilty to violating the Bank Secrecy Act and resigned as CEO.
BNB Primed For Rapid Surge To $1,000 Next?
The plea deal concluded long-running US probes into Binance. However, the dust didn’t fully settle until CZ recently reported to a California facility to start his four-month prison sentence.
Despite the legal challenges, BNB has proven resilient, firmly remaining among the top 10 cryptocurrencies for over a year. The token ranks directly below Bitcoin (BTC), Ethereum (ETH), and Tether (USDT).
The bullish momentum appears ready to resume in the crypto market after a period of range-bound action following the April block subsidy halving. Bitcoin (BTC) tapped the $71,000 level on June 3. Other major cryptocurrencies like Toncoin (TON), have also seen considerable gains, with TON jumping to a new ATH of $7.76 in the last 24 hours.
Successfully defending the $700 level could start the next leg of BNB’s uptrend to the target of $800 and soon $1,000 highs.
