Key Takeaways
Why is Binance outperforming despite the market shakeout?
Strong on-chain activity, robust bid zones, and a track record of consecutive ATHs are backing the token’s price action.
Does the recent compensation affect BNB’s momentum?
The payout calms social chatter, but doesn’t undermine the token’s fundamentals.
The recent market shakeout was a real stress test.
Technically, it showed which assets could rebound hardest, 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 12 October, BNB recovered 100% of its losses with a 14% rebound, reinforcing its bid support. However, in doing so, it exposed a market split, creating a gap that could either make or break the next leg up.
Market moves, big payouts, and questions of trust
Binance Coin is sprinting like it’s in a league of its own.
Two weeks into Q4, its monthly ROI of 28% is already leading the charts, with no other high-cap even close. What’s more, BNB is on track to close its fourth straight monthly candle higher after recently printing a $1.3k ATH.
In short, BNB has posted four straight ATHs since Q3. However, it wasn’t until the recent crash that its resilience came under the microscope. Suddenly, chatter around “manipulation” picked up as traders tried to read the move.
Source: X
As the largest CEX, BNB held its ground through a chop that briefly de-pegged USDe, BNSOL, and WBETH. Traders are still sizing up whether this crash was led by Binance-triggered liquidations cascading into the de-peg.
Ethena Labs’ CEO called it into question too. However, Binance quickly rolled out a $283 million compensation plan for affected users, only stoking the chatter over whether this crash was orchestrated or not.
In this context, does this swift compensation signal a commitment to user trust? Or is it a strategic move to quell mounting criticism? Either way, BNB is now at a key inflection point, with its on-chain flows under growing scrutiny.
CZ, Binance, and BNB’s on-chain strength
Binance founder CZ stepped in too, reinforcing BNB’s on-chain strength.
“Many projects have a market maker. BNB doesn’t. I am not aware of any of my affiliated entities buying or selling BNB in the past days/weeks. BNB have builders. BNB have community. BNB is deflationary.”
On-chain, BSC racked up 31 million transactions with an average block size of 195k. It nearly matched its all-time high of 32.68 million back in November 2023, signaling robust network utilization.
Technically, the surge in network activity is syncing up with BNB hitting $1.3k, showing that on-chain flows are backing the move. Meanwhile, its TVL climbed to a yearly high of $9.21 billion, retracing back to its 2022 levels.
Simply put, BNB’s recent run can be supported by real on-chain action. In this context, Binance’s growing scrutiny might be more noise than a real threat to the chain, with FOMO keeping its Q4 momentum largely unobstructed.
