Binance Coin Price News: BNB Active Addresses Spike Above 3m – Next Stop $1,000?

BNB Coin (BNB) had been quiet for most of the year but has now exploded as transaction volumes and daily active addresses within the BNB Chain have been on a strong uptrend lately.

Just 14 hours ago, BNB Coin made a new all-time high after surging to 882.60 for the first time in its history. As a result, the token is now one of the best-performing assets in the top 5 with year-to-date (YTD) gains of 20.5% – just 45 basis points under BTC’s annual performance.

BNB Chain Daily Active Addresses – Source: BSC Scan

BNB Coin is now the only altcoin that has made a new all-time high during this bullish cycle. However, other top tokens in this category like Ethereum (ETH) and XRP (XRP) have moved quite close to their respective ATHs at $4,749 and $3.65 respectively.

Daily active addresses have once again moved above 3 million for the first time since June 20 when they reached their current all-time high of 3.55 million. This indicates that usage levels and interest in the BNB Chain ecosystem have accelerated significantly this year.

BNB Chain Leverages Binance’s Huge User Base to Grow

The BNB Chain was launched by Binance many years ago to allow investors to store their assets out of the exchange via hot and cold wallets. The network offers low transaction fees and supports thousands of assets.

However, the crypto community has complained that it is not a decentralized chain as it relies heavily on Binance-controlled validators. Hence, the risk that the chain could be impacted by operational issues at Binance – the exchange – is a factor that deep-pocketed investors often consider.

BNB Coin is also bought by Binance users to get discounts on trading fees. This is a big source of demand in addition to transaction settlement.

In our previous BNB Coin price prediction, we favored a strong push toward $900 after the token reached $800 nearly a month ago. We also anticipated a much-needed pullback as the rally seemed overextended and momentum indicators were already flashing sell signals.

The key area of support we highlighted back then at around $740 held quite well and the token has now rallied near the $900 level for the first time in its history. The chart shows the key trend line support to watch moving forward as BNB Coin takes a breather.

BNB Is On Track to Hit $900 as Trend Line Support Holds

After a 5.5% move higher yesterday, the token is retreating by 3.2% already today. Traders should keep an eye on what appears as a bearish engulfing candle in the making in the daily chart.

If yesterday’s gains are wiped out, the odds favor another push to the trend line support at around $820. That would be a good entry for late buyers if you expect an upcoming move to $1,000 over the next few days.

BNB/USD Daily Chart (Binance) – Source: TradingView

Meanwhile, the $770 – $800 could also be retested from above if that trend line support fails to hold. It all comes down to how strong FOMO will continue to be at this point.

The long-term outlook remains bullish primarily as altcoin season seems to be just getting started. It would be difficult to envision a scenario where other top assets like XRP, Ethereum, and Solana do not make new all-time highs at a point when macro tailwinds are all favoring a move higher.

A weaker U.S. dollar, the launch of new spot ETFs for multiple altcoins, a crypto-friendly President and SEC, and supportive legislation like the Genius Act being passed on by Congress, just to name a few, are all strong catalysts that could fuel the next leg up for BNB Coin and other assets.