BNB Token Drops 2.5% After Reaching All-Time High Above $1,300
BNB, the native token of the BNB Chain, fell over 2.5% in the last 24 hours after reaching a record high above $1,300 earlier this week.
Despite recent declines, BNB has grown by 129% over the past year, surpassing the performance of Bitcoin and Ethereum.
High trading volatility is noted, with BNB fluctuating within a $62 range from October 9–10, closing at $1,250.
SKALE Labs CEO Jack O'Holleran attributes the surge to Binance's extensive reach rather than just hype, highlighting its impact on adoption and inflows.
Jasper De Maere from Wintermute likens the current rally to Solana's previous cycle, where increased token prices led to ecosystem liquidity.
The rally is supported by gas-fee reductions, RWA incentives, and liquidity programs, benefiting tokens like CAKE, HENA, HONEY, and MANTA.
De Maere notes the "L1 wealth effect," where rising token prices boost USD gains reinvested into surrounding protocols.
Potential risks include signs of exhaustion if stablecoin balances decrease or capital exits the BNB Chain.
The pattern mirrors Solana's trajectory, emphasizing internal wealth recycling until significant outflows occur.
