The BNB price continued its strong surge this month as it reached its highest level on record. Binance Coin was trading at $1,100 on Friday, up by 120% from the lowest level this year. It has beaten most coins, including the popular names like Bitcoin and Ethereum. This article explores whether it has more room to run in October.
Top reasons why the BNB price has surged this year
The Binance Coin price has jumped this year and is now hovering at its highest point on record. There are several reasons why this surge is happening.
First, the network delivered several major upgrades that boosted its performance. The most recent upgrade was the Maxwell hard for that reduced its block time from 1.5 seconds to 0.75 seconds. This upgrade doubled its throughput, reduced the risk of mised votes, and boosted its peer-to-peer messaging.
Second, BSC Chain has had one of the fastest network growth metrics this year. For example, it has constantly been in the top three of the most active chains in the DEX industry. For example, DEX protocols in its network handled over $92 billion in the last 30 days. This made it the third-biggest network after Solana, which handled $125 billion and Ethereum’s $109 billion.
BSC is growing its stablecoin business
The BSC Chain has also had robust success in other areas in the crypto industry. For example, it is now the fourth-biggest chain in the stablecoin sector. Its stablecoin supply jumped by 15% in the last 30 days to over $13 billion.
Also, the number of transactions in the network jumped by 58% to 376 million in the same period. BSC handled over $218 billion in stablecoins in the last 30 days. This growth is notable as many experts believe that stablecoins are the future of payments because of their lower costs and faster transaction speeds.
BNB price also benefited from its deflationary nature. The network does two types of token burn. The real-time burn involves burning its network fees. This approach has burned 270,615 coins worth almost $300 million over time.
The other approach is the quarterly burn, which incinerates tokens based on the number of produced blocks. This approach burns tokens worth over $1 billion a quarter. The ultimate goal is to reduce the number of tokens in circulation from the current 139 million to 100 million over time.
The BNB price has also jumped because of the rising hopes that Donald Trump will ultimately grant Changpeng Zhao a full pardon. CZ has hired lobbyists for to advocate for this, and his company is the biggest player in the USD1.
Binance Coin price technical analysis
The daily timeframe chart shows that the BNB price has jumped in the past few months, as we predicted. It has jumped from a low of $502 earlier this year to a record high of $1,125.
The coin has jumped above the important resistance level at $1,083, it highest point on September 23. Moving above that level invalidated the double-top pattern.
BNB price has jumped above all moving averages, a sign that bulls are in control. Also, the price is nearing the extreme overshoot level at $1,125.
Therefore, the most likely scenario is where the token continues rising as bulls target the important resistance level at $1,500. A drop below the support at $1,000 will invalidate the bullish forecast.
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