BNB Gains Over 10% Amid Market Liquidation Event
BNB demonstrated resilience during a market downturn that saw nearly $20 billion in liquidations. Initially, BNB dropped only 2-3% before rebounding by over 10% within 24 hours, reaching above $1,130.
Response from Changpeng Zhao
- Changpeng Zhao (CZ), former Binance chief, dismissed concerns about BNB's price stability on social media.
- CZ emphasized the community and infrastructure behind BNB as reasons for its strength.
- BNB was among the top-five coins with minimal losses during the liquidation event, alongside Bitcoin.
Factors Supporting BNB's Performance
- BNB offers trading fee discounts, increasing its value during high volatility and trading volume.
- The token's deflationary design supports its price under stress.
- No market maker involvement; reliance on community and core functions to absorb shocks.
Market Analysis and Reactions
- Analyst Altcoin Sherpa noted BNB's strong performance, highlighting its outperformance even amid a market rebound.
- BNB's intraday loss turned shallower than its seven-day decline, indicating renewed buying interest after the sell-off.
- Some crypto tokens fell up to 80%, while BNB's dip reached about 17% before recovering.
