Why BNB Matters: Key Drivers Behind BNB Chain Rally and Growth

The recent surge in BNB price has attracted widespread attention across the crypto community. Although the BNB chain’s native token is down more than 2.5% in the past 24 hours, the cryptocurrency hit a new all-time high above $1,300 earlier this week.

The latest rally has seen BNB surpass Ripple’s XRP and Tether’s USDT stablecoin. At the time of writing, BNB is the fourth largest cryptocurrency, with a market capitalization of $170 billion according to CoinMarketCap.

BNB Chain recently experienced a “meme coin frenzy.” According to GeckoTerminal, total trading volume on BNB Chain reached approximately $20.5 billion on October 8, compared to $12.7 billion on Solana, a difference of approximately $7.8 billion.

Earlier this week, a trader turned $3,000 into $2 million in days by using a meme coin on BNB Chain. However, the BNB Chain meme coin rally came to a sudden halt when Binance founder Changpeng “CZ” Zhao clarified that his social media posts should not be taken as trading indicators or endorsements.

What is driving the rise of BNB?

Meme coins and hype aside, industry experts believe BNB’s recent surge is being driven by Binance’s scale and user reach. The popular cryptocurrency exchange recorded inflows of $14.8 billion last quarter, which directly correlates with the increase in activity on the BNB chain.

Zac Cheah, co-founder of Pundi AI, a data ecosystem infrastructure built on BNB Chain, told Criptonoticias that BNB’s utility has always been tied to actual activity on BNB Chain. Cheah believes this connection has only strengthened as the ecosystem matures.

“Every time gas fees are reduced or new applications in DeFi, GameFi or AI gain traction, it drives greater on-chain usage and reinforces BNB’s position as the native fuel of the ecosystem,” Cheah said.

Therefore, Cheah believes that the BNB price increase reflects the strength of the underlying network. “BNB Chain has recently shown consistent user activity, high transaction volume, and growing developer participation,” he said.

Marwan Kawadri, DeFi leader and head of EMEA at BNB Chain, told Cryptonews that the ecosystem has started to see more real-world use cases.

“We are seeing more real-world usage, from real-world tokenized assets to payments and DeFi, all backed by ultra-low fees and high-speed execution. The market is recognizing that this is not hype; it is activity that drives utility and adoption,” Kawadri said.

According to YCharts, the trading volume on Binance Smart Chain reached $27.49 million on October 9. The previous month, the transaction volume was $13 million, which represents a more than double increase.

BNB Chain Technical Glow

The increased transaction volume on the BNB chain is attributed to the recent advancements of the network. Kawadri shared that BNB Chain’s technology stack has matured and offers faster finality, higher capacity, and consistently low gas costs.

“We are building one of the most scalable environments for on-chain trading. That combination is resonating with both active traders and institutions,” he said.

For example, BNB Chain’s Maxwell update in June of this year slashed block times from 1.5 seconds to 0.75 seconds, demonstrating the network’s most aggressive speed optimization yet. This update positioned BNB Smart Chain as the fastest Layer 1 (L1) blockchain, making BNB Chain more attractive to dApps, merchants, and developers.

With this in mind, Cheah shared that BNB Chain represents a balance between performance, accessibility, and ecosystem maturity. “For developers, it offers something very practical: a fast, low-cost environment where products can scale without friction.”

He added that the new standard gas fee of 0.05 Gwei has made the BNB chain one of the most profitable L1s on the market, which is key for AI and data-intensive applications like ours.

Kawadri also added that BNB Chain has more upgrades in store this year, including a 10x increase in the block gas limit, faster transaction finality up to 450ms on mainnet, and ultra-low fees.

A thriving builder ecosystem

The BNB Chain builder ecosystem is also thriving. On October 8, an announcement indicated that BNB Chain’s $1 billion Builder Fund, backed by YZi Labs, intends to accelerate current and future builders on the network. The announcement further notes that the BNB chain ecosystem currently consists of over 460 million users.

“The BNB Most Valuable Builder program and the new $1 billion Builder Fund are clear signs that BNB Chain is serious about long-term innovation. It’s not just about funding hype cycles; it’s a funding utility, from AI to DeFi to RWA. That attracts developers who want to build for the next decade, not just the next bull run,” Cheah said.

Institutional inflows and Treasury allocations

In addition to technical maturity and a thriving builder ecosystem, BNB’s price rise has likely been influenced by several corporations and organizations revealing sizable BNB holdings.

For example, CEA Industries (BNC) reportedly added BNB to its treasury. On October 7, the publicly traded consumer products company announced that it now holds 480,000 BNB tokens with an average acquisition cost of $860 per token. This represents a total investment of approximately $412.8 million.

Additionally, B Strategy, a digital asset investment firm founded by former Bitmain executives, recently announced plans to launch a billion-dollar crypto treasury focused on investing in BNB.

Challenges to consider

While the BNB chain is gaining ground, several challenges remain for L1.

Mati Greenspan, founder and CEO of Quantum Economics, told Criptonoticias that perception remains a major obstacle for the BNB Chain ecosystem.

“Many see it as too centralized and too tied to Binance. The technology is strong, but it needs real-world applications before the masses jump on it,” Greenspan said.

Given this, Greenspan believes that in the short term, the crypto sector can expect more on-chain noise and mememania. He added that if the BNB chain continues to offer scalability and privacy, it could eventually become a robust infrastructure.

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