CZ denies any market maker involvement in the BNB price rally, crediting its strong price surge to builders, community, and deflationary design.
Binance founder CZ recently addressed BNB’s strong price performance publicly. He confirmed that the native token operates without market maker involvement. This sets BNB apart from many other crypto ventures around the world. He stated that he is not aware of any related party involved in trading. These related companies include those that recently bought or sold BNB. This transparency is a differentiation factor for the BNB ecosystem.
CZ Attributes BNB Strength to Builders, Community, and Deflationary Model
CZ also pointed out the true reason for BNB’s strength. He credited its success to its dedicated builders and loyal community. Besides, the inherent deflationary nature of the token plays an important role. This kind of design decision can help to reinforce its long-term value proposition. This is very important during periods of high market volatility.
Many cryptocurrency projects hire a professional market maker to their cause. However, CZ emphasized that this is not the case for BNB. He made it very clear that there were no affiliated companies that had traded BNB. This ban applies to the previous days and weeks of the recent rally. This gives an unusual insight into how the token works.
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In terms of digital asset liquidations, the recent market crash was one of the biggest ever. For example, Bitcoin fell to a deep low of below $102,000. Also, ETH became too volatile during the turmoil. Thus, the following strong bounce-back was closely monitored by analysts. BNB’s performance was most interesting during this recovery period.
Binance market data indicates a strong recovery. Namely, ETH recovered above the $4,000 level. It recorded a decent 4% increase over 24 hours. One is that BNB appeared to be stronger right off the bat. It broke out above the $1300 resistance level.
BNB is trading at a high of almost $1,280 after the pump. This is a 13% increase from the same 24-hour time period. This performance reaffirmed a bullish market for numerous traders. It meant that the ecosystem of BSC/BNB is now the main venue for trading.
Altcoin data also supports the strong ecosystem performance. For instance, CAKE made a stunning comeback. It was worth $3.27, up 18%. Also, the ASTER token managed to record some major gains. ASTER ended at $1.50 and had a 15.37% gain over the period.
BNB Outshines Market with Utility-Backed Momentum
This network strengthens the intrinsic value of the system as a whole. There is a large developer and user activity in the BNB ecosystem. Thus, this organic demand is the reason for the price appreciation. This growth is contrary to the trend of price movements based on external market manipulation. This offers a greater degree of stability to investors.
CZ did say with some surprise at the power shown. He characterized the BNB price move as “insanely strong.” He stated that all major cryptocurrencies were rebounding slightly. However, the high performance of BNB was definitely evident. This validates the increasing trust in the network.
CZ’s open approach is crucial for investor confidence. Most smaller projects are highly dependent on market makers for liquidity. This dependence tends to raise issues of artificial price support. Thus, CZ’s explicit denial reassures the community. It confirms that the momentum is based on basic applications.
The BNB is outperforming the market with a clear message. It means real ecosystem utility tends to trump outside considerations. This is a good indication of the maturing crypto market in general. Ultimately, the token’s power comes from its architecture and active user base. This puts BNB in a great position for future market growth.