BNB Reaches All-Time High as Altcoin Momentum Grows in a Changing Regulatory Landscape
Cryptocurrencies that have been under regulatory scrutiny are among the top performers recently, driven by growing optimism that a more favorable U.S. regulatory approach to digital assets could materialize under Donald Trump’s leadership.
BNB, the native token of the Binance-affiliated BNB Chain, hit a new all-time high on Wednesday, following the trend of large-cap cryptos such as Bitcoin (BTC), Solana (SOL), and Tron (TRX), which have all set fresh records. BNB reached a session peak of $793 before pulling back slightly, breaking through the $700-$720 resistance level that had held for over three years. The token was last trading at $730, marking a 14% increase in the past 24 hours and outperforming Bitcoin’s 0.4% gain and the broader CoinDesk 20 Index, which rose by 2.7%.
This surge comes as Bitcoin has stalled below the critical $100,000 level, prompting traders to rotate capital into altcoins to capitalize on potential gains. Older cryptocurrencies facing regulatory hurdles, such as Ripple’s XRP and TRX, have also performed strongly, fueled by the belief that the regulatory environment for digital assets is shifting toward a more crypto-friendly stance.
Launched by Binance in 2017, BNB powers the BNB Chain, previously known as Binance Smart Chain, and is used for transaction fee payments and trading discounts on the Binance exchange. Despite its utility, BNB faced significant challenges in 2023, with the token lingering around $200 for much of the year due to regulatory issues surrounding Binance. However, these challenges have lessened in recent months, particularly after Binance’s founder, Changpeng “CZ” Zhao, was released from prison in September following a guilty plea for violations of the Bank Secrecy Act. Binance has also strengthened its compliance operations to address regulatory concerns.
BNB’s rise is further bolstered by Binance’s quarterly token burn program, which reduces the circulating supply of BNB tokens based on blockchain activity. In the most recent burn, Binance destroyed more than 1.7 million BNB tokens, valued at $1.07 billion at the time.
Along with the price increase, BNB Chain has experienced a rise in user engagement. Data from Artemis.xyz reveals that both daily active addresses and transaction volumes have reached their highest levels in at least three months, reflecting increased activity within the BNB Chain ecosystem.
