- BNB surges 11%, hitting a six-month high after the launch of Sleepless AI on Binance Launchpool.
- Challenges for BNB include maintaining a market cap over $46 billion and addressing regulatory concerns.
- Despite hurdles, BNB’s Smart Chain continues to showcase demand through effective DApps usage.
In a surprising turn of events on December 26th, Binance Coin (BNB), the native token of Binance, experienced a remarkable 11% surge, standing out amidst the broader crypto market trends. This surge propelled BNB to its highest level in the last six months. The driving force behind this upward trajectory was the unveiling of Binance’s 42nd project on Launchpool – Sleepless AI (AI).
For Binance traders, the exciting opportunity to farm AI tokens became a reality as they could stake BNB, FDUSD, and TUSD for a seven-day period starting December 28, 2023. Sleepless AI stands out as an innovative gaming platform that seamlessly integrates artificial intelligence (AI) and blockchain technology. With a distinctive approach and a team of experts, Sleepless AI aims to revolutionize the gaming industry, promising enticing rewards in the era of AI dominance.
Learn more ⤵️ https://t.co/qzrGvuKGGV
— Binance (@binance) December 27, 2023
Despite initial challenges in breaking the $300 resistance, the rally successfully closed the market capitalization gap left by Solana. Formerly the 4th-largest cryptocurrency, BNB now faces the challenge of maintaining a market cap exceeding $46 billion to reclaim its former position. A substantial part of BNB’s value is attributed to reduced trading fees and exclusive launchpad offers and services provided by Binance.
Investor concerns initially arose when Binance’s founder, Changpeng ‘CZ’ Zhao, pleaded guilty to U.S. Federal charges on November 21st. However, fears of a swift market share loss proved unfounded, at least until the trial concludes and Binance must report all trades to a designated watchdog.
Mitigating regulatory risks, Binance engaged with the U.S. Commodity Futures Trading Commission (CFTC) on December 18th. Nevertheless, Binance coin faces selling pressure due to concentrated ownership among Binance’s founders and team, along with transparency issues surrounding the initial distribution of BNB tokens and changes in the token burn mechanism.
Smart Chain Dynamics: BNB’s Impact on BSC Chain
Despite these challenges, the BNB Smart Chain’s effective use of decentralized applications (DApps) underscores the demand for the BNB token. The BSC Chain currently holds $3.368 billion in total value locked (TVL), a fraction of Ethereum’s $28.156 billion.
Notably, BSC Chain lags behind Ethereum’s top scaling solutions like Arbitrum, Optimism, Polygon, and Base, holding less TVL than these competitors. While BSC Chain’s TVL increased by 25% in the past 30 days, Solana and Avalanche experienced more substantial gains of 142% and 50% during the same period, respectively.
Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.