Binance’s BNB price broke another all-time high yesterday. How can this unstoppable growth in cryptocurrency be explained, and will it last?
BNB price hits another all-time high
Yesterday, the price of BNB exceeded $1,080 for the first time in its history, just a few days after breaking the symbolic $1,000 mark. The cryptocurrency of the Binance exchange platform is now worth $143 billion, bringing it closer to the market capitalization of Tether’s USDT ($172 billion at this stage).
Firmly entrenched in 5th place in the ranking of the most capitalized cryptocurrencies, BNB has been breaking records since this summer. Over the weekend, it rose 12%:
Rumors and a possible return of Changpeng Zhao
This breakthrough can be explained by several factors: first, the global context, which has tended to favor cryptocurrencies. But also a string of good news for the exchange platform: rumors are circulating about a relaxation of regulatory oversight for its services.
In addition, other equally persistent rumors indicate that Changpeng Zhao, the company’s long-time CEO, is preparing to return to service. A discreet change to his status on X sparked the rumors.
As a reminder, Changpeng Zhao was banned from participating in the management of Binance in 2023, following a court conviction in the United States. However, he is said to have sought a presidential pardon, which has already been granted to other major players in the cryptocurrency industry.
These two rumors have one thing in common: they point to a likely easing of the restrictions on Binance.
Stronger demand from institutional investors
In addition, other factors more specific to cryptocurrency have also contributed to this price increase. It is worth noting that institutional demand for Binance’s cryptocurrency has been renewed. With the exchange platform showing signs of consolidation, institutional investors have been more inclined to buy BNB. It should also be noted that applications for BNB ETFs are currently pending with the SEC.
All of this has combined to push the price of BNB to new heights. However, some commentators believe that the wave could run out of steam and that a correction is imminent. According to analyst Emmanuel Lazaro, while the $1,200 target remains feasible at this stage, a scenario of decline is also possible:
This bullish expansion may, however, pause for breath. In this scenario, the support zone that currently seems most favorable is between $812 and $886.
