Market Update: BNB and Bitcoin Surge
Trading data reveal that BNB jumped 6% to $262 in around 30 minutes after Bloomberg reported on Nov. 20 that Binance was discussing an agreement to settle a DOJ investigation into potential sanctions violations, money laundering, and fraud. This market reaction indicates that the DOJ decision does not represent a systemic risk to the entire industry.
Bitcoin has joined BNB in the market recovery. Today, BTC has a market cap of $731 billion, reflecting a 49.8% domination. Also, the global crypto market cap is $1.47 trillion today, representing a 79.06% increase over a year ago.
BNB’s Rally on Settlement Talks
Binance‘s native crypto, BNB, rose 6.55% to $ 262.73 on reports of prospective settlement discussions between Binance Holdings Ltd. and the US Justice Department. This increase in value, which represents a three-month high, shows market optimism as Binance potentially gets closer to addressing long-standing regulatory issues.
- BNB hits a 90-day high after settlement talks.
- Binance could pay $4 billion by the end of the month for settlement.
- The settlement reportedly allows Binance to continue functioning.
While the fine is one of the largest ever imposed by the US government on a company, traders and analysts are relieved for the market as a whole. This market reaction indicates that the DOJ ruling does not represent a systemic risk to the entire industry.
Four hours after reaching a peak of $262, BNB fell to $252. However, it surged again to $266 hours later, marking its highest level since June 7. This surge occurred in the wake of a lawsuit filed by the Securities and Exchange Commission against Binance and its CEO, Changpeng “CZ” Zhao, who was accused of violating multiple securities laws.
The 24-hour price increase for the Binance-issued token is the greatest among the 75 largest crypto coins by market cap. BNB is the fourth largest token by market capitalization at over $40 billion at the time of writing.
In spite of the recent surge in price, BNB has gained 6.5% year-to-date but is down 61.4% from its all-time high of $686 on May 10, 2021.
In one possible settlement, Binance would be required to pay a ten-figure fine and remain operational in the United States under specific conditions. Bloomberg reported that a prospective agreement announcement could be made by the end of the month at the latest.
Bitcoin Joins the Surge
As a result, this news not only boosted the value of BNB but it also boosted the value of Bitcoin, which rose 2.1% to $37,768. At the time of writing, the price of Bitcoin is $37,402.17.
The increased trade volume, which indicates substantial market activity and confidence in the BNB’s upward trajectory, strengthens a market recovery. If the trade volume continues to rise, BNB has more upside potential.
Market Caps and Transaction Fees
According to CoinGecko, the global crypto market cap is $1.47 trillion today, a 0.06% increase over the last 24 hours and a 79.06% increase over a year ago. Bitcoin (BTC) has a market cap of $731 billion as of today, reflecting a 49.8% domination. Meanwhile, the market cap of stablecoins is $128 billion, accounting for 8.75% of the total crypto market worth.
Additionally, average daily transaction fees on Bitcoin have reversed with Ethereum in the wake of a Bitcoin network mania involving Ordinals. As of November 20th, Bitcoin incurred an average daily transaction fee of $10.34, whereas Ethereum recorded an average transaction fee of $8.43.
Since October 24th, more than 6 million Ordinal assets have been generated, leading to the redistribution of over 800 BTC in fees, equivalent to $30 million, to the network.
Ordinals inscription activity increased further on November 7, when ORDI, the second largest BRC-20 token by market cap, was listed on Binance. Traders engaged in a greater surge of BRC-20 purchasing activity in response to the listing; the price of the ORDI token increased by approximately 50% on the same day.
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