Binance-affiliated BNB Chain has rebounded after a interval of stagnation in 2023 amid accelerating institutional and decentralized finance (DeFi) adoption.
Through the previous yr, BNB Chain has benefited from multibillion-dollar inflows into DeFi, US exchange-traded funds (ETFs), and rising buying and selling quantity at affiliated centralized trade (CEX) Binance.
Consequently, the blockchain community’s native BNB token (BNB) has emerged as among the market’s most resilient cryptocurrencies, surpassing all-time highs within the first quarter of 2025 even because the broader crypto market trended downward.
“This resilience is not nearly worth motion — sturdy fundamentals additionally again it,” Joao Wedson, CEO of investing analytics platform Alphractal, said in an April X publish. “Binance has constructed a large ecosystem the place BNB is used extensively,” Wedson added.
Asset supervisor Customary Chartered expects the BNB token’s price to continue to rise, reaching highs of $2,775 by the top of 2028. As of Might 7, BNB trades at round $600 per coin. It has a market capitalization of practically $85 billion, according to CoinMarketCap.
In the meantime, asset supervisor VanEck proposed on Might 5 the first BNB ETF in the United States.
Associated: Standard Chartered predicts BNB will more than double in 2025
DeFi inflows
Because the begin of 2024, BNB Chain’s TVL has elevated from round $3.5 billion to greater than $6 billion, according to knowledge from DefiLlama. It nonetheless hasn’t recovered absolutely to all-time highs of greater than $20 billion in 2022.
As of Might 7, BNB Chain ranks fourth amongst layer-1 blockchain networks by TVL, the info reveals.
In response to Customary Chartered, BNB Chain’s “use circumstances stay nearly solely on decentralised exchanges [DEXs], lending protocols, and liquid staking. This makes it a way more concentrated and ‘old school’ good contract platform than rivals,” it stated in a Might analysis word reviewed by Cointelegraph.
“Whereas this caps upside potential, it additionally offers a level of stability,” in response to the asset supervisor.
PancakeSwap is amongst BNB Chain’s largest DEXs, with roughly $1.5 billion in TVL, in response to DefiLlama.
Institutional adoption
Institutional adoption is rising on the blockchain community, with efficiency partly pushed by its ties to Binance, the community’s affiliated CEX.
The trade clocked an all-time excessive buying and selling quantity of round $76 trillion in 2024. It accounts for roughly 40% of spot buying and selling volumes globally, in response to Customary Chartered.
As well as, US President Donald Trump-backed stablecoin USD1 has been issued totally on the BNB Chain. Information from BscScan reveals that greater than $2 billion value of USD1 — or 99% of its circulating provide — has been issued on BNB Chain.
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Cointelegraph by Alex O’Donnell Binance’s BNB Chain rebounds from slump cointelegraph.com 2025-05-07 21:05:11
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