Binance’s BNB is on the verge of breaking through the $1,000 mark, having reached a historic high of $710.

By market capitalization, the world’s fourth-largest cryptocurrency, BNB, soared to the critical level of $700 today, setting a new all-time high. BNB is the native token of the BNB Chain ecosystem. The token hit a historic peak of $710.86, with a rise of over 8.4% in the past 24 hours. As a result, BNB’s performance has outshone the overall cryptocurrency market, which rose by 2.3% in the same period.

BNB Bulls Regain Dominance

After setting a new historical high, Binance’s BNB token has stunned the cryptocurrency market today. Data from CoinGecko shows that BNB’s market capitalization is nearing $110 billion, putting the token ahead of major Wall Street firms like UBS, Dell, and Starbucks.

It’s noteworthy that BNB’s price performance has been exceptional compared to other cryptocurrency markets, without any clear fundamental catalysts behind it. Nonetheless, some analysts believe that the token’s price has benefited from years of token burns and lock-up programs for its Launchpool projects. The platform allows users to participate in new token offerings from Binance (the world’s largest exchange by trading volume) by holding and staking BNB.

Burning refers to the permanent removal of tokens from the circulating supply by sending them to an inaccessible wallet. Since 2021, burns have been based on eliminating a portion of the gas fees spent in BNB Chain transactions. The BNB burn will cease when the total issuance falls below 100 million. Currently, BNB’s circulating supply is 154 million.

In recent years, BNB’s price has somewhat lagged, possibly due to regulatory challenges Binance has faced in multiple jurisdictions, including the United States, Nigeria, and the Philippines. Last November, Binance reached a $4.3 billion settlement with U.S. regulators over money laundering and sanctions violations. The exchange’s founder, Changpeng Zhao, admitted to violating the Bank Secrecy Act and stepped down as CEO.

Is BNB Poised for a Rapid Climb to $1,000?

This plea agreement concluded the U.S.’s long-standing investigation into Binance. However, the investigation only truly came to a close when Changpeng Zhao recently began serving a four-month sentence in a California prison.

Despite legal challenges, BNB has shown resilience, consistently ranking among the top ten cryptocurrencies for over a year. The token ranks just behind Bitcoin (BTC), Ethereum (ETH), and Tether (USDT).

After a period of range-bound fluctuations following the halving of block subsidies in April, the bullish momentum in the cryptocurrency market seems poised to resume. Bitcoin (BTC) touched the level of $71,000 on June 3rd. Other major cryptocurrencies, like Toncoin (TON), have also seen significant gains, with TON jumping to a new high of $7.76 in the past 24 hours.

Successfully holding the $700 level may kick off BNB’s next upward trend, targeting $800 and quickly reaching the high point of $1,000.

Sentiment: Positive