Binance’s native token (BNB) jumped to record highs on Wednesday amid a broader crypto market uplift that saw a resurgence in long-time altcoins affiliated with Ethereum and Bitcoin.
BNB surged 8% to a new peak above $788, beating out its previous June all-time high of $710, CoinGecko data shows. The asset is used for trading fee discounts, transaction fees on the Binance Smart Chain, staking, participation in token sales, payments, borrowing, and lending.
Meanwhile, Ethereum Classic (ETC) and Bitcoin SV (BSV) continue to rise, reaching heights not seen since March and April, respectively. ETC is up 21% on the week to $38.37, while SBV is posting similar gains, up 20% to $82.80.
Bitcoin Cash (BCH) has also risen higher over the last seven days, good for a 12% pop to $583.
The tokens originated from Bitcoin and Ethereum hard forks, stemming from disagreements over project direction and philosophy, leading to the creation of separate networks with distinct protocols.
Ideological divides included issues over scalability, transaction costs, and governance, resulting in the splintering of communities.
So what gives?
According to Ryan McMillin, chief investment officer at crypto fund manager Merkle Tree Capital, the recent rally in a host of older tokens better resembles the price action of meme coins.
“Not too surprising as these tokens already possess mindshare from previous cycles and benefit from being listed on major exchanges, which provides easy access for retail investors,” McMillin told Decrypt.
However, McMillin warned seasoned crypto investors are unlikely to “chase the rally” despite the recent momentum witnessed over the last 30 days.
“I expect these tokens to mean revert over time as capital rotates into projects with stronger fundamentals and active ecosystems,” he said. “You are more likely to be used as exit liquidity than catch another leg up.”
In other words, prices are likely to return closer to historical averages once the speculative pump fades, Mcmillin said.
