BNB Reaches New All-Time High, Breaking Out of a 3-Year Range as Altcoins See Increased Attention

BNB Hits New Highs as Capital Rotates Into Altcoins Following Regulatory Shifts

Older cryptocurrencies, which have been overshadowed by regulatory concerns in the past, have seen notable gains recently, driven by expectations of a more favorable regulatory environment for digital assets under a potential Trump presidency.

BNB, the native token of the Binance-affiliated BNB Chain, surged to an all-time high on Wednesday, marking another significant achievement for large-cap cryptocurrencies following the record-breaking performances of Bitcoin (BTC), Solana (SOL), and Tron (TRX). BNB reached a peak of $793 during the day before retreating slightly, surpassing the $700-$720 resistance level that had held for over three years. The token was last trading around $730, up 14% in the past 24 hours, outperforming Bitcoin’s 0.4% rise and the broader CoinDesk 20 Index, which gained 2.7%.

The surge in BNB’s price came as Bitcoin struggled below the key $100,000 threshold, prompting traders to rotate their capital into altcoins in search of greater returns. Cryptos with lingering regulatory concerns, like Ripple’s XRP and TRX, were among the top performers over the past month, fueled by the market’s optimism over a potential shift in U.S. regulatory policy.

BNB was launched by Binance in 2017 and powers the BNB Chain, formerly known as Binance Smart Chain. It is used within the Binance exchange ecosystem for transaction fee payments and trading discounts. Despite its strong use case, BNB faced headwinds in 2023, with the token trading at near bear market lows around $200 for much of the year due to Binance’s ongoing regulatory issues. However, these concerns have eased in recent months, especially following the release of Binance’s founder, Changpeng “CZ” Zhao, from prison in September after he pled guilty to violating the Bank Secrecy Act. Binance has also bolstered its compliance efforts.

BNB’s rally is further supported by Binance’s token burn program, which reduces the supply of the coin based on blockchain activity. In the most recent burn, Binance destroyed more than 1.7 million BNB tokens worth $1.07 billion at the time.

Additionally, BNB Chain has seen an increase in user activity. Data from Artemis.xyz shows that daily active addresses and transaction volumes have reached their highest levels in over three months, signaling growing demand for the platform.