- BNB Coin hits a new all-time high of $711.56, driven by Binance’s platform activity.
- Trading volume and incentive programs boost BNB’s value and investor confidence.
With Bitcoin leading the way by rising over $71,000, the global cryptocurrency market is exhibiting clear indications of revival. Furthermore benefiting from this rising trend is Binance Coin (BNB), which on June 5, 2024, hit a new record high of $711.56.
For BNB, the price rise of more than 12% from $625.26 the day before is a major turning point as it crosses the $700 level following three years of consolidation.
Key Drivers Behind BNB Coin’s Surge
A number of things have led to the current price increase for BNB. A main factor is more activity on Binance’s Launchpad and Launchpool platforms. The requirement to buy and lock up BNB in order to acquire parts of recently released tokens is what attracts investors to these platforms.
Beside that, Notcoin (NOT) is the most recent release, a gaming token on Telegram that has increased by 140% in the last week, drawing a lot of curiosity and investment. This increased participation has raised the demand for BNB, which has raised its price.
Trading Volume and Market ActivityÂ
With a sharp rise in trading volume over the last 24 hours, BNB is now the sixth-most traded digital currency. The increase in trading volume is a reflection of the confidence and interest of investors in BNB, which drives up its price even more.
As of right now, CoinGecko data show that the price of Bitcoin is about $704.23, having increased by 12.02% over the last 24 hours and 1.63% over the previous week.
Options traders have also significantly contributed to BNB price movements. A common hedging tactic against possible price declines is to buy put options with strike prices between $550 and $650.
BNB options have an open interest rate of $7.5 million at the moment. Chief Commercial Officer of PowerTrade Bernd Sischka said that 11,250 options were exchanged recently, which helped BNB become more well-known and develop.
Binance’s Incentive ProgramÂ
In order to encourage trading even more, Binance has introduced the $250,000. prize pool Trading Volume Incentive Program, in line with what ETHNews previously disclosed.
With this initiative, traders and ecosystem partners should get rewards, which will encourage more people to trade BNB. The scheme has raised the price and volume of BNB trading considerably.
A further important element driving up BNB’s pricing is the Proposer-Builder Separation (PBS) model’s application in BNB Chain and the use of BEP 322 to solve the Maximal Extractable Value (MEV) supply chain solution.
This paradigm maximizes network users’ profitability by separating the roles of validators and block builders, therefore promoting competition and improving transparency.