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BNB Surges Above $1,000 On The Back Of Memecoins And Technical Improvements
Amid the chatter around BNB’s meteoric rally to reach a new peak of $1,005, Changpeng Zhao has deflected claims of being directly responsible for the price surge. The Binance founder disclosed that he is not technically involved in the BNB project in the same manner as Ethereum’s Vitalik Buterin.
In an X post, Zhao noted that the BNB’s rally is intricately tied to the warm embrace of cryptocurrencies by the US government since the start of the year. With the US openly declaring support for digital assets and several countries adopting a pro-crypto stance, CZ opined that price rallies are expected.
Furthermore, Zhao pointed to the resurgence of memecoins on the BNB Chain as a key catalyst for the rally beyond $1,000. The Binance founder admitted to previous mistakes of underestimating the impact of memecoins on ecosystem activity as memecoin activity ballooned on the BNB Chain.
“Earlier this year, memes made a comeback on BNB Chain,” wrote Zhao. “I actually made some mistakes that may have hindered meme coin progress on BNB Chain. I never aped meme coins before.”
 
Apart from memecoins, Zhao highlighted a string of technical improvements to the blockchains, particularly around innovations to reduce MEV attacks. For Zhao, the steady reduction of block time from 3 seconds to 0.75 seconds played an integral role in the march to surpass the $1,000 milestone.
Furthermore, the 10x reduction of gas fees and the significant improvement of BNB Chain’s capacity led to a spike in average daily transaction volumes. In the lead-up to the new all-time high, stablecoins, AI, and RWA tokens joined memecoins to pull impressive transaction volumes, leveraging BNB Chain’s low gas fees and faster block times.
Dropping Of The SEC’s Case And Fed Rate Cut Powers Rally
Zhao added that BNB’s price received a boost following the shuttering of SEC cases against Binance and its US arm. In May, the SEC dropped its lawsuit against Zhao in what the Binance founder describes as “removing the last attack on BNB potentially being a security.”
Furthermore, Zhao recognized the impact of multiple corporate entities adding BNB to their balance sheets. CEA Industries and Nano Labs are leading the vanguard for the corporate adoption of BNB amid a wave of VC firms backing ecosystem projects.
Finally, the Binance founder pointed to the 0.25% interest rate cut by the US Federal Reserve as the final catalyst for the price rally. Following the first interest rate cut of the year, cryptocurrency prices surged to consolidate their $4 trillion market capitalization, with capital rotating out of Bitcoin to altcoins.
Source: https://zycrypto.com/binances-changpeng-zhao-reveals-reasons-behind-bnbs-rally-to-1000-heres-all/