Key Takeaways
Why Binance is performing better despite the market shock?
Strong on-chain activity, robust bidding zones, and a track record of consecutive ATHs support the token’s price action.
Does the recent compensation impact BNB’s momentum?
The payout calms social chatter, but doesn’t undermine the token’s foundations.
The recent market shock was a real stress test.
Technically, it showed which assets could rebound the fastest, and Binance Coin [BNB] came out on top. After a 12.07% pullback, the high-cap token is now just 3.5% below its all-time high.
In fact, on October 12, BNB recovered 100% of its losses with a 14% recovery, strengthening support for bids. In doing so, however, it exposed a division in the market, creating a divide that could make or break the next leg.
Market moves, big payouts and questions of trust
Binance coin is sprint as if it were in a class of its own.
Two weeks into the fourth quarter, the monthly ROI of 28% is already at the top of the charts, with no other high-cap even coming close. Furthermore, BNB is on track to close higher for the fourth straight monthly candle, having recently printed an ATH of $1.3k.
In short, BNB has posted four consecutive ATHs since the third quarter. However, it was only during the recent crash that its resilience came under the microscope. Suddenly, talk of “manipulation” increased as traders tried to read the move.
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As the largest CEX, BNB held its own for a short time disconnected USDe, BNSOL and WBETH. Traders are still investigating whether this crash was caused by Binance-induced liquidations that went into the de-peg.
CEO of Ethena Labs called it has also been questioned. However, Binance quickly rolled out a $283 million compensation plan for affected users, which only fueled the chatter over whether or not this crash was orchestrated.
In this context, does this quick compensation mean there is a commitment to user trust? Or is it a strategic move to quell growing criticism? In any case, BNB is now at an important turning point, with the flows within the chain coming under increasing scrutiny.
The power of CZ, Binance and BNB in ​​the chain
Binance founder CZ stepped also in, strengthening BNB’s power in the chain.
“Many projects have a market maker. BNB does not. I am not aware of any of my affiliates buying or selling BNB in ​​recent days/weeks.” BNB has builders. BNB has community. BNB is deflationary.”
On the chain, BSC tormented 31 million transactions increased with an average block size of 195k. It nearly matched the all-time high of 32.68 million in November 2023, indicating robust network usage.
Technically, the increase in network activity is in sync with BNB reaching $1.3k, showing that on-chain flows are supporting this move. In the meantime it is TVL climbed to an annual high of $9.21 billion, returning to 2022 levels.
Simply put, BNB’s recent run can be supported by real on-chain action. In this context, Binance’s increasing scrutiny could be more of a noise than a real threat to the chain, with FOMO keeping its momentum largely unchecked in the fourth quarter.
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