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Joel Frank
Joel Frank
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Why Trust Cryptonews
BNB (BNB) has pumped an impressive 10% on Wednesday, as the broader crypto market posted a surprise rebound following the release of hotter-than-expected US inflation data that forced markets to downsize bets on more Fed rate cuts this year.
That impressive rebound makes BNB easily the best-performing crypto in the top 10 by market cap over the past 24 hours, per CoinMarketCap.
The BNB price was last around $700, a stunning 40% rebound from last Monday’s “flash crash” lows just above $500 per coin.
The market leading rebound shouldn’t come as too much of a surprise in wake of recent positive BNB/Binance-related news.
Namely, the new pro-crypto SEC just agreed with Binance to pause their case against the world’s largest exchange for 60 days.
Given its association with Binance, BNB is set to be one of the biggest beneficiaries of the abrupt end of the US regulatory crusade against crypto.
Meanwhile, in the background, BNB Chain continues to see impressive user growth, recently surpassing 500 million unique wallets.
Where Next for BNB (BNB)?
Its ties to Binance and concerns that it might be a “centralized” coin mean that BNB sometimes struggles to get the limelight it perhaps deserves.
It remains one of the fastest, cheapest and most accessible to use blockchain’s in the business, with a lot of adoption to justify its lofty $100 billion market cap.
Today’s US inflation report highlighted that the economic backdrop remains challenging for risk assets – Fed rate cuts are becoming increasingly unlikely this year and US bond yields are rising.
That said, positive adoption and regulatory tailwinds coming from Washington’s new overtly pro-crypto stance suggest price risks remain heavily skewed to the upside this year, even if unfavorable financial conditions trigger volatility and act as a headwind.
BNB is currently attempting to push to the north of a downtrend from the December record highs at $800.
A break above here could open the door for renewed bullish momentum and a retest of record highs.
With former Binance CEO CZ back out of jail and openly advocating for the blockchain again, the best is likely yet to come for BNB.
How High Could It Go?
Ethereum has previously shown the market that a smart contract blockchain can achieve a $500 billion market cap.
Assuming rapid adoption continues in the years ahead and BNB remains a leading blockchain, a valuation 5x above current levels is not at all out of the realm of possibility.
This would imply a price in the $3,500 region.
Something to note about BNB is also that there is no issuance schedule set to hurt its price in the years ahead, unlike XRP (XRP) and Solana (SOL), both of which have a huge amount of supply to unlock.
For those looking to gain exposure to broad crypto adoption in the coming years would do well to add BNB to their portfolio, alongside household names like BTC, ETH and SOL.
