BNB price is beating Ethereum and Bitcoin; CZ responds

Binance Coin continued its strong performance this week, reaching an all-time high of $794.

Binance Coin (BNB) has outperformed some major cryptocurrencies such as Ethereum (ETH) and Bitcoin (BTC) in the last 12 months. It increased by 220% compared to BTC’s 133% and ETH’s 71% increase in the same period. In response to an X post highlighting this performance, Changpeng Zhao noted that investors often focus on 24-hour performance and miss broader long-term gains.

People only care about performance in the last 24 hours, scratch those 8 hours. 😂

Too many people look for a quick win and then miss out on much larger, long-term gains.

— CZ 🔶 BNB (@cz_binance) December 5, 2024

BNB price momentum is due to its strong fundamentals and technicals. Essentially, the total value of DeFi locked in the BSC ecosystem has jumped to almost $6 billion, making it the fourth largest chain after Ethereum, Solana, and Tron.

BSC’s protocols in the DEX industry have also risen sharply over the past few months, aided by the ongoing crypto rally. It handled tokens worth $9.91 billion and $1.17 trillion cumulatively in the last 30 days.

Additionally, BNB Chain is actively burning coins. With the last quarterly burn, 2.02 million coins were removed from circulation. Binance’s long-term goal is to reduce the total Binance Coin supply to 100 million tokens.

BNB price also performed well after Binance launched BFUSD, a stablecoin that promises almost 20% returns. These developments created more benefits for Binance coin.

Another driver of BNB’s rise has been the resolution of regulatory concerns. Binance founder Changpeng Zhao recently completed his prison sentence in the United States, reducing some of the regulatory setbacks affecting cryptocurrency.

BNB price has strong technical features BNB price chart | source: crypto.news

Meanwhile, Binance Coin has powerful techniques that could push its price much higher than it is today. On the weekly chart, the cryptocurrency formed the cup and handle pattern, a popular bullish sign. It has now moved above the top of this formation; This is a sign that the bulls are victorious.

The distance between the top and bottom edges of the cup indicates a potential 70% upside. Applying this measurement from the breakout point indicates a possible target of $1,170.

The Murrey Math Lines tool also supports the bullish outlook, showing that BNB has broken above the “underweight, stop and reversal” level and could rise to the “overshoot” level at $875.

However, a decline below the key support level at $625, defined as the “strong pivot reversal” level, would invalidate the bullish view.