BNB Hits Record High of $1,311 as Trading Volume Surges 9%

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Binance Coin (BNB) is currently trading at an all-time high of $1,311, a 7.55% surge in the last 24 hours. This is due to a 9.36% increase in trading activity, resulting in over $8.56B in trading volume.

The token is also sitting as the third-largest crypto by market cap, surpassing both stablecoin Tether (USDT) and the rival token XRP.

BNB Price action | Source: CoinMarketCap

Core Drivers

Fundamentally, this surge in price is mostly driven by ecosystem adoption. Just recently, BNB’s market valuation moved past the $182 billion mark. Therefore, the asset secured a key position ahead of major competitors.

At the same time, On-chain data shows BNB Chain monthly active addresses have now hit a record high of 60 million users. This milestone confirms genuine growth and usage across DeFi, gaming, and DApps built on the network

In addition, the Total Value Locked (TVL) in decentralized finance protocols across the chain has seen massive growth. For example, the Aster Protocol saw its TVL increase by more than 570% to reach $2.4 billion. This shows a huge boom in trading and lending activities across the platform.

Finally, the temporary shutdown of the U.S. government has created financial uncertainty for investors. This political instability delays the release of crucial economic data, making markets nervous. Consequently, investors often look to alternative assets like decentralized cryptocurrencies.

Technical Analysis & Future Outlook

Looking at the daily chart, BNB is in a definitive price discovery mode after breaking past its previous all-time high of $860, which also happens to be a resistance level. Since then, the market has printed an impressive 66% surge in price, turning the resistance level into a support level.

Going forward, the intense surge in price suggests that the price might just push towards $1300 and $1400. However, Indicators like the RSI, which is used to monitor the momentum of the market, suggest that the price is currently overbought, sitting at the 76.52 level.

This means that we might see a retest of the $860 support level before a more significant push to the upside.