BNB Chain ecosystem projects experienced a surge in activity, token prices and trading volume.
The BNB token price hit an all-time high of more than $710.
The increase is attributed to several factors including token burns, the large user base in the Eastern world and technical features that enable the development of low-cost projects.
Projects across the BNB Chain ecosystem recorded a jump in activity, token prices and trading volume as the blockchain’s native BNB token hit a record price above $710 during the Asian morning.
Trading volumes of BNB Chain-based tokens surged 124% in the past 24 hours, CoinGecko data shows. Dog-themed meme coin floki (FLOKI), based on both Ethereum and BNB Chain, where it is the biggest meme token, led gains with an advance of more than 25%. Decentralized exchange PancakeSwap’s CAKE jumped 15%.
Among projects with a market capitalization of under $200 million, the price of trading service Sensi’s SENSI rocketed 900%, with trading volumes increasing from $14,000 on Monday to $100,000 as of Wednesday morning.
The value locked on BNB ecosystem projects rose nearly 8%, data tracked by DefiLlama shows, led by PancakeSwap and lending application Venus. Net inflows into the ecosystem topped $2.4 million as of Wednesday morning, breaking a trend of net outflows since May 30.
While there was no immediate catalyst for BNB’s price gain, some market observers suggested several existing activities had boosted the token’s fundamentals.
“BNB’s price is benefiting from years of token burns and token lock initiatives for their launchpad program,” Nick Ruck, head of growth at bitcoin yield project BitU, wrote in a Telegram message. “BNB protocols have also ramped up campaigns and activities due to cheaper gas fees and have cultivated a large and energetic user base.”
Burns are the permanent deletion of tokens from circulating supply by sending them to an address not controlled by anyone. Since 2021, these burns have been based on removing a portion of the gas fees spent on BNB Chain transactions. Nearly $400,000 of the tokens were burned in the past seven days, blockchain trackers show.
“BNB chain is perhaps the most underrated chain in all of crypto, partly due to some anti-Binance/BNB narratives being pushed in some quarters,” said a Floki developer identified only as B. “However, from a fundamentals perspective, the BNB chain is one of the best chains to build on: it is fast, scalable, and arguably the most used chain by the majority of the non-Western world.”
BNB Chain was initially developed as Binance Smart Chain and the world’s largest exchange still supports its development and funding.
“We are prioritizing the BNB chain for the Floki Trading Bot, which will be going live soon, as well as for several other products. This action has paid dividends: Floki currently has 5 times more holders on the BNB chain than ETH, and the vast majority of our community is made up of people who use the chain,” B said.
