BNB has climbed to make the BNB chain’s native cryptocurrency (the Layer-1 blockchain developed by Binance) become the third largest digital asset by market capitalization.
After surpassing $1,100 for the first time on Friday, BNB (BNB) reached a new major milestone on Tuesday by overtaking Ripple-supported XRP (XRP) as the third-largest cryptocurrency by market capitalization.
According to Coingecko data, BNB increased nearly 30% at $1,326 at publication, and has increased nearly 30% over the past seven days.
This breakthrough coincides with the expansion of BNB adoption in various regions, including the launch of a government-supported BNB fund in Kazakhstan. Meanwhile, some market observers have raised concerns about the potential price manipulation underlying the sharp rise compared to other cryptocurrencies.
BNB’s $38 billion surge stands out amid the wider crypto rallies
BNB’s rally coincides with broader profits across the crypto market, but its growth stands out from the growth of key peers like Bitcoin (BTC) and Ether (ETH).
Bitcoin’s market capitalization has risen by about 5% since October 1, but BNB’s market capitalization has risen by about 28% in just seven days, adding $40 billion to its value.
Ether, the second-largest cryptocurrency with a market capitalization of around $568 billion, recorded an 8.4% increase in market value over the same period.
For comparison, it took BNB more than two months this year to add a similar amount to its market capitalization, which was worth about $100 billion in mid-July.
Since October 1, Crypto’s total market capitalization has increased by just 5.5%, but Bitcoin and ether have gradually lost control.
Community asks about the driving forces of growth
BNB’s oversized profits have sparked controversy across social media, and some commentators speculating about the potential market manipulation behind the rapid rise in tokens.
Some market watchers in Reddit’s Solana (Sol) community have questioned BNB’s utilities compared to tokens like Sol. Several commentators immediately pointed out potential price manipulation.
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“BNB is essentially similar to an FTX token. You cannot wait until the price operation is called in the evidence.
The operational claims also spread on X. There, he accused Defitracer of “purchasing millions of BNBs and liquidating shorts,” suggesting that the exchange could be actively driving BNB price movements.
Does CZ hold 64% of BNB’s circulating supply?
Despite speculations about market manipulation on social media, Binance and its top executives and founder Changpeng “CZ” Zhao have yet to comment on the rumours.
CZ posted on Tuesday “Continue Building a BNB Chain” and reposted an analysis by BNB-focused cryptography enthusiast Momin Saqib.
“It feels like the broader industry is still waiting for direction, but BNB quietly lists the most powerful numbers in the industry,” writes Saqib, referring to the BNB chain’s monthly active addresses of 60 million and the new record highs for BNB.
With BNB’s market capitalization reaching $182 billion, CZ was able to personally hold up to $116 billion for Crypto Asset, as of June 2024, earlier reports suggested that Zhao held 64% of BNB’s distribution supply.
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