BNB price is outperforming Ethereum and Bitcoin; CZ responds

Binance Coin continued its strong performance this week, reaching an all-time high of $794.

Binance Coin (BNB) has outperformed some big coins like ethereum (eth) and bitcoin (btc) over the past 12 months. It has gained 220%, compared to 133% for btc and 71% for eth in the same period. In response to an x post highlighting this performance, Changpeng Zhao noted that investors often focus on 24-hour performance, overlooking broader long-term gains.

<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter“>

BNB price momentum is being driven by its strong fundamentals and technicals. Fundamentally, the total DeFi value locked in the BSC ecosystem has jumped to almost $6 billionmaking it the fourth largest chain after ethereum, Solana and Tron.

BSC protocols in the DEX industry have also seen a sharp rise in recent months, helped by the current cryptocurrency rally. It has handled tokens worth $9.91 billion in the last 30 days and $1.17 trillion in total.

Furthermore, the BNB chain has been actively burning coins. The most recent quarterly burn removed 2.02 million coins from circulation. Binance's long-term goal is to reduce the total supply of Binance Coin to 100 million coins.

BNB price has also been performing well after Binance launched BFUSD, a stablecoin that promises a return of almost 20%. These developments have created greater utility for Binance coin.

Another driver of the BNB rally is the resolution of regulatory concerns. Changpeng Zhao, the founder of Binance, recently completed his prison sentence in the United States, reducing some of the regulatory overreach affecting the currency.

BNB Price Has Strong Technicals

Meanwhile, Binance Coin has strong technical aspects that could make its price much higher than today. On the weekly chart, the coin has formed a cup and handle pattern, a popular bullish sign. It has now moved above the upper side of this pattern, a sign that the bulls have prevailed.

The distance between the top and bottom edges of the cup suggests a potential 70% rally. Applying this move from the breakout point indicates a possible target of $1,170.

The Murrey Math Lines tool also supports a bullish outlook, showing that BNB has moved above the “weak, stop and reverse” level, suggesting it could advance to $875, the “extreme overshoot” level.

However, a fall below the key support level of $625, identified as the “strong inverse pivot” level, would invalidate the bullish outlook.