2 Reasons Why Binance Coin Is Up 16% In A Week

BNB price has seen a significant rally of 16% over the last month, including a 1.6% increase in the last 24 hours. The overall crypto market picked up following the Trump rally in Butler, Pennsylvania, on Sunday, in which Elon Musk declared he was ‘Dark MAGA.’ However, other additional factors may be driving up the price of Binance Coin.

Why is the BNB Price Rising?

Binance coin has been trending inside a consolidation zone for the past 210 days. While this sucks for investors holding BNB during periods of market runs, it has been of great advantage during the period the crypto market has crashed — August 5 and September 6. Here are a couple of reasons why the Binance Coin price is rising, and there is a chance of a 68% breakout to $1,076.

1. Centralized Exchanges (CEX) Coins Outperformed the Market

In the past week, coins associated with centralized exchanges have outperformed all the other sectors in the cryptocurrency market. According to data from Artemis Analytics, the CEX sector has grown by 6.1% over the past 7 days, closely followed by the Artificial Intelligence (AI) sector at 4%.

Being the largest exchange in the world, Binance coin stands to gain the most from this sector growth. Much of BNB price growth over the years has been attributed to the exchange rather than to the Binance Smart Chain. 

2. Binance Ecosystem Sees $3M Net Inflow

According to Artemis Analytics, there has been a substantial net inflow of volume into the Binance ecosystem over the past week. Nearly $3 million has flowed into the Binance Smart Chain (BSC), putting at rant 7 in with the ecosystems with the most inflows over the past 7 days. 

Out of the $2.8 million in net inflows, $2.2 million came from the Ethereum network, showing that investors are moving from Ethereum to BSC, among other chains. This change in ecosystem preference could be due to market sentiment changing from Ethereum to Binance Smart Chain. 

Can Binance Coin Price Reach $1000?

BNB coin price grew most during bull runs when the Binance Exchange received most of its users.

For instance, in the 2017 bull run, the BNB coin price soared from $0.9 to $25; in the 2021 bull market, it increased from $6.8 to $670. If the coming 2025 bull run is anything like the past, the BNB coin price can surge as high as $1,000, if not higher. 

BNB price looks like it’s in a bull flag setup. The extended consolidation zone is a primer for an explosive move upward when the time for breakout comes.

If the Binance coin price fails to break out to the upside, the price could drop lower to the $500 support level. If sell pressure persists, BNB coin could drop lower to $350 and potentially to $200. 

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Evans Karanja

Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.