BNB Climbs 129% in a Year as Distribution Fuels Ecosystem Growth
BNB, the native token of the BNB Chain, has surged 129% over the past year, outperforming Bitcoin and Ether, though it fell more than 2.5% in the last 24 hours from a fresh all-time high above $1,300 earlier this week. The token traded within a $62 range from Oct. 9–10 before closing near $1,250, according to CoinDesk Research.
Experts say the rally is driven by Binance’s scale and ecosystem reach rather than hype. Jack O’Holleran, CEO of SKALE Labs, told CoinDesk, “We’re in a phase focused on reach over tech. Distribution is the key driver, with $14.8 billion in inflows last quarter and BNB Chain activity surging.”
Jasper De Maere, strategist at Wintermute, compared the rally to Solana’s late-2024 surge, noting that BNB’s gains—boosted by gas-fee cuts, RWA incentives, and liquidity programs—sparked activity across DeFi, yield, and meme sectors, benefiting tokens like CAKE, HENA, HONEY, and MANTA.
De Maere described the “L1 wealth effect,” where rising token prices generate USD gains that are reinvested within the ecosystem. “Liquidity rotates internally as long as BNB prices hold near highs. Only when outflows accelerate does the loop end,” he said.
For now, the BNB Chain continues to recycle capital internally, echoing Solana’s earlier growth pattern, though signs of exhaustion could appear if funds start leaving the network.
