BNB Chain Ecosystem Surges as Token Reaches All-Time High Above $710

Trading volumes of ecosystem tokens more than doubled in the past 24 hours, with meme coin FLOKI leading gains among larger tokens.

The BNB Chain ecosystem is experiencing a surge in activity, with token prices and trading volumes significantly increasing. The BNB token price hit an all-time high of over $710, driven by several factors including token burns, a large user base in the Eastern world, and technical features that support the development of low-cost projects.

Projects across the BNB Chain ecosystem recorded substantial increases in activity, token prices, and trading volumes as the blockchain’s native BNB token reached a record price above $710 during the Asian morning. Trading volumes of BNB Chain-based tokens surged 124% in the past 24 hours, according to CoinGecko data. Dog-themed meme coin floki (FLOKI), based on both Ethereum and BNB Chain, where it is the largest meme token, led gains with an advance of more than 25%. Decentralized exchange PancakeSwap’s CAKE jumped 15%.

Among projects with a market capitalization of under $200 million, the price of trading service Sensi’s SENSI rocketed 900%, with trading volumes increasing from $14,000 on Monday to $100,000 as of Wednesday morning.

The value locked in BNB ecosystem projects rose nearly 8%, data tracked by DefiLlama shows, led by PancakeSwap and lending application Venus. Net inflows into the ecosystem topped $2.4 million as of Wednesday morning, breaking a trend of net outflows since May 30.

While there was no immediate catalyst for BNB’s price gain, some market observers suggested several ongoing activities had boosted the token’s fundamentals. “BNB’s price is benefiting from years of token burns and token lock initiatives for their launchpad program,” Nick Ruck, head of growth at bitcoin yield project BitU, wrote in a Telegram message. “BNB protocols have also ramped up campaigns and activities due to cheaper gas fees and have cultivated a large and energetic user base.”

Burns are the permanent deletion of tokens from the circulating supply by sending them to an address not controlled by anyone. Since 2021, these burns have been based on removing a portion of the gas fees spent on BNB Chain transactions. Nearly $400,000 worth of tokens were burned in the past seven days, according to blockchain trackers.

“BNB Chain is perhaps the most underrated chain in all of crypto, partly due to some anti-Binance/BNB narratives being pushed in some quarters,” said a Floki developer identified only as B. “However, from a fundamentals perspective, the BNB Chain is one of the best chains to build on: it is fast, scalable, and arguably the most used chain by the majority of the non-Western world.”

BNB Chain, initially developed as Binance Smart Chain, still receives support and funding from the world’s largest exchange. “We are prioritizing the BNB Chain for the Floki Trading Bot, which will be going live soon, as well as for several other products. This action has paid dividends: Floki currently has 5 times more holders on the BNB Chain than on ETH, and the vast majority of our community is made up of people who use the chain,” B added.