The Binance Coin price has surged and is nearing its all-time high as demand for the token jumps. BNB jumped to a high of $720 on Thursday morning, about 10% below its all-time high of near $800.
PancakeSwap, Thena, and Venus prices are soaring
The BNB price surged this week as ecosystem data show that the most of its tokens were in a strong uptrend.
PancakeSwap, one of its biggest ecosystem tokens soared to a high of $3.40, its highest level since December 13, and up by almost 200% from its lowest level this month.
Thena price soared by over 77% in the last 24 hours to $0.8464, while Venus token jumped by 40% to $8.83. Other top players in the ecosystem like Dodo and Lista DAO continued soaring by double digits.
This rebound happened as the BNB ecosystem continued doing well. For example, PancakeSwap had a seven-day volume of $20.2 billion, higher than popular DEX networks like Raydium and Uniswap. It has handled over $1.02 trillion in volume since its inception,
Thena also had a high volume as it handled over $872 million of these tokens, bringing its cumulative volume to $28 billion. Uniswap’s volume on BNB Chain more than doubled to $538 million, while Dodo and Woofi saw a strong performance.
These numbers mean that the BNB network is doing well, a move that may lead to higher fees in the network.
The Binance Smart Chain has a total value locked (TVL) of over $5.6 billion, a 11% increase in the last seven days. Its bridged TVL has jumped to over $12.9 billion, while the stablecoin assets moved to about $7 billion.
These networks make BNB one of the industry’s biggest chains. Most notably, unlike Solana, it has not been boosted by meme coins since its network has just a few meme tokens.
The BNB network will also benefit from the upcoming Tapswap airdrop that happens on its network on Friday.
Binance Coin token burns
The other potential catalyst for the BNB price is the fact that it is a highly deflationary token. It achieves that by having two burning mechanisms. The real-time token burn happens when part of the fees is incinerated. This burn typically burns tokens worth almost $1 million a week, which has brought the cumulative total burns to $180 million.
BNB also has the quarterly burn that is determined by the number of blocks produced each quarter. This mechanism normally burns tokens worth over $1 billion a quarter.
Altogether, Binance Coin hopes that it will reduce the number of tokens in circulation from 144 million to 100 million.
A combination of higher network fees and token burns means that the staking yield will keep on rising. The yield has jumped to 16.4%, making it higher than US government bonds and the popular Schwab US Dividend Equity ETF.
In a note to Invezz, an analyst at TapRot said:
“BNB is one of the most underrated coin in the industry. It is highly uncorrelated with Bitcoin, and its ecosystem is thriving. It has strong technicals and fundamentals that may push it much higher in the coming months.”
Read more: 4 reasons the Binance BNB price will surge to $1000 soon
BNB price forecast
Binance coin price chart by TradingView
The BNB price has some of the best technicals in the crypto industry. It has risen to $715, up by over 40% from its lowest point this month.
The coin has fomed a cup and handle pattern, a popular bullish view. It has also remained above the 50-week and 100-week moving averages, a sign that bulls are in control for now.
Therefore, by measuring the cup’s depth, we can assume that the token will eventually jump to over $1,000 in the coming weeks. A rise to $1,000 would point to a 41% jump from the current level.
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