Binance's native token, BNB, has reached a new all-time high of $711.56, following a significant surge of almost 17% over the last 7 days.
Binance's native token, BNB, has reached a new all-time high of $711.56, following a significant surge of almost 17% over the last 7 days. BNB is currently trading at $703, and has risen by 11.66% in the past 24 hours, significantly outperforming Bitcoin (BTC).
The recent rally in BNB can be attributed to heightened activity on Binance's Launchpad and Launchpool platforms. These platforms require users to purchase and stake BNB in order to earn shares of newly-issued tokens. The latest project to launch was the Telegram-based gaming token, notcoin (NOT), which has rallied 140% in the past 7 days and attracted significant attention.
In combination of that, traders in the BNB derivatives market aggressively increased their long positions, driving funding rates up by 300% in just the first three days of June. Funding rates reflect the ratio of leverage used by long and short traders, with higher rates indicating a dominance of bullish sentiment. This surge in long leverage suggests many traders anticipated BNB's price to continue climbing.
Additionally, Binance's introduction of a new "Lista" megadrop campaign has likely boosted demand for BNB. Users must stake their BNB tokens for a set period to accumulate points redeemable for the new LISTA token. This program has undoubtedly attracted investors seeking to capitalize on the opportunity, further pushing BNB's bullish trajectory.
With the bullish momentum, trading volume has surged to nearly $4 billion over the past 24 hours, making BNB the sixth most-traded cryptocurrency in the past 24 hours. However, this has prompted a cautious approach among options traders. Many are securing put options with strike prices ranging from $550 to $650, suggesting a hedging strategy against potential price drops.
Options contracts, which provide the right to buy or sell an asset at a predetermined price before the contract expires, are being utilized strategically. Buying call options is typically seen as a bullish move, while purchasing put options is considered a bearish bet. Currently, there is $7.5 million worth of open interest in BNB options. If BNB continues its upward trajectory or maintains its current level, many of these put options will expire worthless.
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