Binance Coin (BNB) rose more than 12% in the last seven days, amid the cryptocurrency market’s price recovery. However, all indications are that the asset has its own fundamentals to drive the current rally.
BNB is trading at $288, up 3% in 24 hours at the time of writing. The figure represents an increase of more than 31% from its lowest point since 2022 when it stood at $196, according to CoinMarketCap data.
The rise appears to be directly related to increased activity on its native blockchain.
According to blockchain data aggregator DeFi Llama, the total value of deposits in the BNB (Total Value Locked) ecosystem increased to nearly $5 billion.
For Decentralized Finance (DeFi), the Binance exchange’s native token is of utmost importance, given that its blockchain is the second largest in this sector, being surpassed only by Ethereum.
In fact, some of the most widely used decentralized applications (dApps) in the crypto ecosystem live on this network, such as the decentralized exhcnage PancakeSwap and the crypto-lending platform Venus.
On the other hand, the return of traders to Binance could be giving another boost to BNB.
DeFi Llama revealed that more than $1.24 billion has been deposited on the exchange, over the past 24 hours and more than $2 billion in the past 7 days. This is not only a positive sign for the exchange, but also for its utility token, BNB.
Binance buys Voyager
The news about Binance’s acquisition of Voyager Digital also gave a boost to the cryptocurrency.
The world’s largest cryptocurrency exchange by trading volume is on track to acquire the bankrupt digital currency lender, Reuters reported last Wednesday.
After several initial setbacks and opposition from the U.S. Securities and Exchange Commission (SEC), Binance is preparing to complete the $20 million acquisition.
If the purchase is completed, former customers of the bankrupt lender will be able to recoup more than half of their lost deposits.
However, news of Binance’s success with initial approval has fueled a bullish narrative among BNB traders, who pushed the price above $270.
What are the experts saying?
Recent price analysis points to the fact that Binance’s native token could be headed towards $300 in the near term.
Analyst Axel Bitblaze wrote on Twitter that “amid all the deception, misrepresentation and misinformation, BNB is up 25% in recent weeks,” alluding to recent fears in the market about the sustainability of the exchange, following the collapse of the second-largest exchange by market cap, FTX.
“With the negative wave over, or at least greatly reduced, BNB is poised to hit $300 in the coming days,” he highlighted and shared an image with his analysis for the cryptocurrency.
Amidst all the fud, misrepresentation & misinformation, $BNB is up 25% in the last few weeks!
With the negative wave over, or at least greatly reduced, $BNB is set to smash $300 in the next few days imo.
— Axel Bitblaze 🪓 (@Axel_bitblaze69) January 9, 2023
Meanwhile, that other media show in their analysis that the $265 support has been very important for the Binance token and that, if held above that level, it would probably reach $300 very soon.
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