BNB Gains Momentum with Altcoin Push
BNB, the Binance exchange token, has experienced a significant surge in market capitalization, surpassing Solana (SOL) by 11.16%.
The recent days leading up to the new year have witnessed multiple assets making upward movements as traders position themselves before the anticipated approval of a Bitcoin (BTC) ETF by the United States Securities and Exchange Commission (SEC).
At the time of writing, BNB is trading at $327.70, reflecting a 21.3% increase in the last seven days and a notable 43% rise in the past 30 days.
“The rise of BNB can be attributed in part to the community optimism surrounding the Sleepless AI on Binance Launchpad, a project that seeks to integrate Web3 and Artificial Intelligence (AI) gaming. This has made it the 42nd project in Binance Launchpool,” said an industry expert.
However, while BNB has demonstrated impressive growth, on-chain metrics indicate that some traders are betting against its upward movement. The Relative Strength Index (RSI) currently stands at 78.4, and it is crucial for it to stay below 65 as a high RSI often precedes a price correction.
Slow Growth of BNB and the Challenges Faced by Binance
Despite posting a year-to-date (YTD) increase of 34.30%, BNB’s growth has been relatively slow compared to coins like BTC and Ethereum (ETH).
In 2022, BTC and ETH both suffered losses of over 55%. However, they have since rebounded, with BTC gaining 156% and currently trading at $43,135, while ETH has gained 102%. Analysts attribute the sluggish growth of BNB to the recent challenges faced by Binance.
“Binance has encountered lawsuits from regulatory bodies such as the SEC and the CFTC. Additionally, its former CEO, Changpeng Zhao, recently stepped down due to a settlement with the authorities. These factors, coupled with decreasing spot trading volumes on the exchange, have hindered BNB’s growth,” explained an industry analyst.
