BNB price is beating Ethereum and Bitcoin; CZ responds

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As a seasoned researcher with over two decades of experience in the dynamic world of finance and technology, I find myself intrigued by the remarkable performance of Binance Coin (BNB). Over the past year, it has outperformed some heavyweights like Ethereum (ETH) and Bitcoin (BTC), which is a testament to its robust fundamentals and potential.

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

Over the past year, Binance Coin (BNB) has outperformed both Bitcoin (BTC) and Ethereum (ETH), delivering a staggering 220% return compared to BTC’s 133% increase and ETH’s 71% growth during the same timeframe. This impressive performance was brought to light in an X post, to which Binance CEO, Changpeng Zhao, responded by pointing out that investors frequently fixate on short-term fluctuations within a day, neglecting the significant long-term gains that can be reaped from strategic investments.

Instead of focusing solely on recent performance, which is often within the past 8 hours, it’s essential to remember that significant, lasting successes usually come with time and patience. Many individuals chase short-term victories, only to overlook the substantial long-term benefits.

— CZ 🔶 BNB (@cz_binance) December 5, 2024

The surge in Binance Coin’s (BNB) price appears to be fueled by its robust underlying strengths and chart patterns. Fundamentally, the value of decentralized finance (DeFi) locked within the Binance Smart Chain (BSC) ecosystem has soared nearly to $6 billion, positioning it as the fourth-largest blockchain platform after Ethereum, Solana, and Tron.

In recent months, the protocols of Decentralized Exchange (DEX) provided by BSC (Binance Smart Chain) have experienced a significant surge, fueled by the ongoing cryptocurrency market rally. Over the past 30 days alone, it has processed tokens valued at $9.91 billion, and cumulatively, it has managed transactions worth approximately $1.17 trillion since its inception.

Moreover, it’s worth noting that the BNB Chain has been consistently destroying coins as part of its strategy. In the latest quarter, a staggering 2.02 million coins were taken out of circulation. The vision behind this is Binance’s aim to eventually lower the total number of Binance Coins in existence to just 100 million.

After Binance introduced BFUSD, a stablecoin offering nearly a 20% return, the value of BNB has also shown strong performance. These advancements have significantly increased the usefulness of the Binance Coin.

One factor fueling the surge of BNB is the resolution of regulatory issues. The incarceration term for Changpeng Zhao, the founder of Binance, has been served in the U.S., thereby lessening some of the regulatory uncertainty surrounding the coin.

BNB price has strong technicals

Currently, Binance Coin’s technical indicators are robust, suggesting potential for significant price growth beyond its current level. On a weekly basis, the coin has developed a cup and handle pattern, a bullish signal often seen in market trends. It has now surpassed the upper boundary of this pattern, indicating that the buying pressure (bulls) is stronger than the selling pressure (bears).

The space from the top to bottom of the cup could imply a prospective 70% increase in value. If we use this measurement starting from the breakout point, it might suggest a potential goal of around $1,170.

The Murrey Math Lines indicator indicates a positive outlook for BNB, as it has surpassed the “vulnerable, halt and reverse” point, hinting that the price might rise towards the “excessive surge” level of $875.

If the price falls below the crucial “reversal pivot” point at $625, it would contradict the current optimistic forecast.

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2024-12-05 17:46