BNB Surges 129%, Reflecting the Same Distribution Dynamics Seen in Solana’s 2024 Rally

BNB Surges 129% Over the Year as Distribution Drives On-Chain Activity

BNB, the native token of the BNB Chain, has gained 129% over the past year, outperforming Bitcoin and Ether, though it dipped over 2.5% in the last 24 hours from a record high above $1,300 earlier this week. Trading volatility remained elevated, with the token moving within a $62 range from Oct. 9–10 before closing near $1,250, according to CoinDesk Research.

Experts attribute the rally to Binance’s scale and ecosystem reach rather than hype. Jack O’Holleran, CEO of SKALE Labs, told CoinDesk, “Distribution is the key factor driving growth. Binance’s reach is translating into adoption, with $14.8 billion in inflows last quarter and BNB Chain activity surging.”

Jasper De Maere, strategist at Wintermute, likened the rally to Solana’s late-2024 cycle, noting that gas-fee cuts, RWA incentives, and liquidity programs fueled activity across DeFi, yield, and meme sectors, benefiting tokens such as CAKE, HENA, HONEY, and MANTA.

De Maere described this as 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 explained.

The BNB Chain continues to recycle capital internally, echoing Solana’s earlier growth trajectory, though signs of exhaustion could appear if funds begin leaving the network.