BNB Price Surge Amidst Co-Founder’s Imprisonment
BNB, a cryptocurrency associated with Binance and its co-founder Changpeng Zhao, has recently reached a historic high amidst significant developments.
This surge coincides with Zhao’s initiation of a four-month prison sentence in the United States, positioning him as the wealthiest individual within a federal prison. Zhao’s imprisonment is linked to allegations of inadequate measures to prevent money laundering on the world’s largest crypto exchange.
According to data sourced from CoinGecko, BNB’s price soared to $717.48 on Thursday, pushing its market capitalization to $109 billion. Remarkably, the token has more than doubled in value since the beginning of the year.
BNB’s Performance Reflects Binance’s Fortunes
The trajectory of BNB’s price mirrors the fortunes of Binance itself. The exchange’s total asset value has surged from approximately $80 billion in early January to $125 billion presently, solidifying its dominance. This resurgence follows a tumultuous period last year, culminating in Binance agreeing to a historic $4.3 billion fine to resolve a case with U.S. authorities.
BNB holders benefit from trading fee discounts on Binance, and the token serves as the currency for fees on the BNB Smart Chain, a popular blockchain utilized by various crypto applications, including gaming platforms and exchanges.
Analyzing BNB’s Recent Rally
Insights from Kaiko analyst Dessislava Aubert shed light on the recent rally of BNB. Aubert points out that the surge was preceded by discernible patterns in derivatives market trading towards the end of May. Subsequently, spot demand surged in June, with buying activity consistently surpassing selling from June 2nd to 5th.
Aubert emphasizes that BNB is traded on numerous centralized exchanges, setting it apart from other exchange tokens primarily traded on affiliated platforms. Notably, Binance still commands 85% of BNB’s global trading volume.
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