Binance Coin (BNB), despite seeing a significant drop earlier this year due to market volatility and the SEC lawsuit against Binance and its founder Changpeng Zhao (CZ), has shown a remarkable recovery and promising prospects.
Recent data indicates a resurgence in the price of BNB, driven by the growing use of decentralized applications (DApps) on Binance Smart Chain (BSC).
Furthermore, BNB's fundamentals, including impressive market capitalization numbers and revenue growth, further contribute to the positive momentum.
BNB Price Rally Driven by DApp Adoption?
After witnessing a sharp drop from its yearly high of $350, BNB saw a drop to the $203 level following the SEC lawsuit against Binance and CZ. However, recent price movements show signs of recovery and bullish sentiment.
In the last 24 hours, BNB has gained 4.5% and its performance in the seven, fourteen and thirty day periods demonstrates an upward trend, with gains of 20%, 24% and 38%, respectively.
One of the driving factors behind BNB's price rally is the increasing use of DApps on Binance Smart Chain. Data from DappRadar reveals an increase in DApp volume, currently at $4.83 billion, representing a 12% increase.
The BNB chain has a ecosystem of 5,120 DApps and has recorded 4.89 million transactions, reflecting an increase of 12.73% in the last seven days. These figures indicate a growing demand for BNB as it acts as the primary token within the BSC ecosystem.
Comparing BNB with ethereum (eth), DappRadar data highlights BNB's outperformance across several indicators such as contracts, total unique active wallets (UAW), decentralized finance (DeFi), total value locked (TVL), and non-fungible token (nft) volume.
The BNB chain has held the top position for the last 24 hours, demonstrating its usage and adoption. This outperformance contributes to the positive market sentiment around BNB and bolsters its price.
Binance Coin Market Cap Rises to $48 Billion
Further Boosting Prospects for Binance Coin, Token Terminal data reveals impressive market capitalization figures for BNB, with a circulating market capitalization of $48.02 billion, up 14.18%.
Furthermore, BNB's fully diluted market capitalization remains at the same value, reflecting a growth of 28.32%. The revenue generated by BNB in the last 30 days increased by 28.51%, reaching $1.47 million.
Furthermore, BNB has recorded significant rate growth, with a rate increase of 27.98% in the last 30 days and annualized revenue of $187.56 million. These fundamentals contribute to the positive sentiment surrounding BNB.
Overall, Binance Coin has seen a strong recovery, demonstrating a notable price rally driven by the increasing usage of DApps on Binance Smart Chain. However, there is a bold prediction by a crypto analyst that could further increase sentiment and enthusiasm around the token.
Will Binance Coin Hit New Yearly High?
According According to Captain Faibik, a top crypto analyst at X (formerly Twitter), Binance Coin is set to hit a new yearly high in the first half of 2024.
This prediction is based on an analysis of the 1-week chart of BNB, which reveals a breakout of a descending triangle pattern, signaling the end of the macro bearish trend and starting a new uptrend phase for BNB.
Looking at the chart below, Faibik suggests that BNB price could see an impressive 171% uptrend in the first few weeks of 2024. This surge would push the token's price above the current all-time high (ATH) of $686.
However, several levels of resistance must be overcome for this projection to materialize. Notably, at the current trading price of $307, BNB is facing a major seven-month resistance barrier, which is currently hindering its rise to the $314 level, the next resistance level in the near term.
Analyzing the 1-day chart, it is evident that reaching the all-time high would require breaking through additional macro resistance levels, including $329, $402, $450, $563, $607, $639, and $653.
While the theory proposed by Faibik is promising, the actual realization of Binance Coin's new yearly high in the early months of 2024, along with a sustained bullish trend, is yet to be seen.
Featured image from Shutterstock, chart from TradingView.com
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