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Binance Coin (BNB) has gone parabolic and surged to a record high. It has soared for five straight days and moved to a high of $712, giving it a market cap of over $104 billion. That makes it the fourth-biggest cryptocurrency in the world after Bitcoin, Ethereum, and Tether.
Why BNB coin is soaring
There are several reasons why the Binance Coin is in an unstoppable bull run. First, analysts have turned bullish on Bitcoin and other cryptocurrencies. In a statement on Tuesday, Mike Novogratz said that Bitcoin could surge to $100k later this year. He believes that this rally will be confirmed if Bitcoin crosses the year-to-date high of $73,800.
Second, the crypto industry is getting some regulatory clarity as the US Congress considers several crypto-related bills. If these bills passes, it means that many big banks like Goldman Sachs and JPMorgan will be at liberty to offer crypto custody solutions.
Third, Binance Coin is soaring because of the rising volume in its platform. Data by CoinMarketCap shows that the volume of crypto traded in the past 24 hours jumped by almost 20% to over $92.5 billion. Binance handled over $20.4 billion of the spot volume and $58 billion of the derivatives volume.
Further, the BNB Chain ecosystem is doing well. Data by DeFi Llama shows that the network’s Total Value Locked (TVL) has jumped to over $7.8 billion. Also, the amount of stablecoins in the ecosystem has soared to over $5 billion.
The biggest networks in the Binance Chain ecosystem are PancakeSwap, Venus, Solv Protocol, and TokenFi. PancakeSwap handled over $416 million in crypto volume in the past 24 hours.
The BNB token price has soared to a record high as Changpeng Zhao has reported to prison to serve a 4-month sentence. As such, there are high chances that he will get out of prison being richer than he went in. It is unclear how many BNB tokens he owns but Bloomberg puts his net worth at over $38 billion.
BNB price forecast
The daily chart reveals that the Binance Coin has been in a strong bull run in the past few months. It has now crossed the crucial resistance level at $644, its previous all-time high. The token had failed to move above this level several times this year.
It has also moved above the 50-day and 100-day Exponential Moving Averages (EMA), which is a bullish sign. The Relative Strength Index (RSI) and the MACD have continued to point upwards. Therefore, the token’s outlook is extremely bullish, with the next point to watch being at $800.
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