BNB (BNB), the native token of the BNB Chain, reached a record high of $720 on June 6 before correcting to $705.
BNB (BNB), the native token of the BNB Chain, reached a record high of $720 on June 6 before correcting to $705. Despite the pullback, BNB has posted a remarkable 19% gain in the first six days of June, significantly outpacing the broader crypto market's 4.2% gain.
Comparing BNB Chain’s activity with Ethereum (ETH), the leading platform for decentralized applications (DApps), provides insight into BNB's sustainability at its current price. The BNB Chain’s low fees, due to its semi-centralized nature, can skew activity data, making direct comparisons challenging. Despite this, BNB Chain remains competitive in DApps volume, showing strength in user engagement.
Analysts initially suggested that BNB's rally was driven by excessive leverage from derivatives traders. This theory gained traction after BNB futures open interest surpassed $1 billion for the first time on June 6. However, data indicates that the rally may not be solely fueled by leveraged positions.
BNB perpetual futures average 8-hour funding rates have stayed below 0.03% over the past six days, which equates to 0.6% per week—a manageable rate for most traders. By comparison, Bitcoin's (BTC) weekly funding rate is 0.2%, while Solana's is higher at 0.5%. This suggests that excessive leverage did not primarily drive BNB's recent price movements.
BNB Chain maintains its position as a top-3 blockchain in terms of DApps volume. Data from DappRadar shows a 23% increase in BNB’s DApps volume over the past seven days, whereas most other blockchains saw declines. Despite this growth, BNB Chain's user base has remained relatively stable, and its seven-day volume of $6 billion is significantly lower than Ethereum's $40.5 billion.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
