Trading volumes of tokens within the BNB Chain ecosystem more than doubled in the past 24 hours, with the meme coin FLOKI leading gains among the larger tokens.
BNB Chain Projects Experience Significant Activity Boost
Projects across the BNB Chain ecosystem have recorded a significant increase in activity, token prices, and trading volume as the blockchain’s native BNB token surged to a record high above $710 during Asian trading hours. According to CoinMarketCap, trading volumes of BNB Chain-based tokens surged by 124% in the past 24 hours. The dog-themed meme coin FLOKI, prominent on both Ethereum and BNB Chain, led the gains with an increase of over 25%, while decentralized exchange PancakeSwap’s CAKE token jumped by 15%.
Smaller Cap Projects Show Impressive Gains
Among projects with a market capitalization of under $200 million, the trading service Sensi’s SENSI token saw a remarkable 900% price increase, with trading volumes rising from $14,000 on Monday to $100,000 by Wednesday morning.
Total Value Locked and Inflows on the Rise
The total value locked (TVL) in BNB ecosystem projects increased nearly 8%, according to data from DefiLlama, led by PancakeSwap and the lending application Venus. Net inflows into the ecosystem topped $2.4 million as of Wednesday morning, reversing a trend of net outflows since May 30.
Factors Contributing to BNB’s Price Surge
While there was no immediate catalyst for BNB’s price increase, market observers pointed to several factors boosting the token’s fundamentals. Nick Ruck, head of growth at Bitcoin yield project BitU, noted that “BNB’s price is benefiting from years of token burns and lock initiatives for their launchpad program. BNB protocols have also ramped up campaigns and activities due to cheaper gas fees, cultivating a large and energetic user base.”
Token burns, which involve the permanent deletion of tokens from the circulating supply, have been a significant factor. Since 2021, these burns have removed a portion of the gas fees spent on BNB Chain transactions, with nearly $400,000 worth of tokens burned in the past seven days, according to blockchain trackers.
BNB Chain’s Potential Recognized by Developers
A Floki developer, identified as B, emphasized the strengths of the BNB Chain: “BNB chain is perhaps the most underrated chain in all of crypto, partly due to some anti-Binance/BNB narratives. However, from a fundamentals perspective, the BNB chain is one of the best chains to build on: it is fast, scalable, and arguably the most used chain by the majority of the non-Western world.”
BNB Chain, initially developed as Binance Smart Chain, continues to receive support from the world’s largest exchange for its development and funding. “We are prioritizing the BNB chain for the Floki Trading Bot, which will be going live soon, as well as for several other products. This action has paid dividends: Floki currently has five times more holders on the BNB chain than ETH, and the vast majority of our community uses the chain,” B added.
