Why BNB Matters: Key Drivers Behind The Rally and BNB Chain’s Growth

Core Insights - The recent surge in BNB's price has garnered significant attention, with BNB reaching an all-time high above $1,300 earlier this week, despite a 2.5% decline in the last 24 hours [1] - BNB has surpassed Ripple's XRP and Tether's USDT, currently ranking as the fourth-largest cryptocurrency with a market cap of $170 billion [1] Group 1: Market Activity - BNB Chain experienced a "meme coin frenzy," with total trading volume reaching approximately $20.5 billion on October 8, significantly higher than Solana's $12.7 billion [2] - A trader reportedly turned $3,000 into $2 million by sniping a meme coin on BNB Chain, although the rally halted after Binance founder Changpeng Zhao clarified his social media posts were not trading endorsements [3] Group 2: Drivers of BNB's Surge - Industry experts attribute BNB's surge to Binance's scale and user reach, noting $14.8 billion in inflows last quarter, which correlates with increased BNB Chain activity [4] - Zac Cheah, co-founder of Pundi AI, emphasized that BNB's utility is tied to real activity on BNB Chain, which has strengthened as the ecosystem matures [5] - Cheah noted that lower gas fees and the traction of new applications in DeFi, GameFi, and AI drive on-chain usage, reinforcing BNB's position as the ecosystem's native fuel [5] Group 3: Real-World Use Cases - Marwan Kawadri, DeFi lead at BNB Chain, highlighted the emergence of real-world use cases, including tokenized assets and payments, supported by low fees and high-speed execution [6][7] - Transaction volume on Binance Smart Chain reached $27.49 million on October 9, more than doubling from $13 million the previous month [7]