BNB News Today: BNB's Record Prices at Odds with Fading User Growth, Volatility Looms

BNB, the native token of the BNB Chain, has surged to record highs, with prices reaching $1,223 in recent trading sessions, driven by a combination of institutional interest, regulatory developments, and network upgrades. The token's 17% weekly gain and 12.3% monthly rise reflect robust short-term demand, fueled by a 570% increase in total value locked (TVL) on the Aster Protocol and renewed participation from corporate entities like Kazakhstan's Alem Crypto Fund. However, this bullish momentum contrasts sharply with a decline in on-chain activity, raising questions about the sustainability of BNB's rally.

On-chain metrics reveal a 12% drop in daily transactions on the BNB Chain, with new addresses declining by 25%. While the network processed 52.5 million active addresses in September, surpassing Solana, the drop in transaction volume and user engagement signals weakening adoption. This divergence between price and usage metrics is compounded by heavy liquidations: nearly $400 million in losses, including $268 million from short sellers, were recorded in a single 24-hour period, underscoring the token's volatility. Analysts attribute this to the dominance of momentum traders and bots, which amplify price swings and create a high-stakes environment.

The price surge has been bolstered by macroeconomic tailwinds, including expectations of a 25-basis-point Federal Reserve rate cut and broader institutional adoption. Binance's regulatory compliance progress and ecosystem upgrades-such as reduced gas fees and the opBNB Layer 2 integration-have enhanced the network's efficiency, attracting decentralized trading and staking activity. Institutional demand has further accelerated, with entities like Jiuzi Holdings and Kazakhstan's Alem Crypto Fund adding BNB to their treasuries.

Technical analysis highlights both optimism and caution. BNB recently tested key resistance at $1,223, with support levels identified around $1,148–$1,158. Despite maintaining gains above $1,200, a late-session pullback to $1,201 suggested profit-taking by larger holders. Projections for further gains to $1,480 rely on sustained buying pressure, though analysts warn of potential corrections if Bitcoin's trajectory or macroeconomic conditions shift.

The interplay between BNB's price performance and user activity underscores a critical risk for investors. While institutional backing and network upgrades provide a foundation for growth, the declining on-chain activity and heavy reliance on speculative trading raise concerns about long-term viability. Market participants are advised to monitor liquidity trends and regulatory developments, as any shifts in policy or investor sentiment could trigger sharp reversals.

[1] BNB Surges to Record High, but Sustainability and Risk ... (https://thefinancialanalyst.net/2025/10/04/bnb-surges-to-record-high-but-sustainability-and-risk-loom/)

[2] Why is BNB Up Today? Price Tops $1.2K as Chain Activity and ... (https://www.coindesk.com/markets/2025/10/06/bnb-tops-usd1-2k-in-4-rally-as-chain-activity-and-institutional-demand-accelerate)

[3] Analyzing the Causes of BNB's September 2025 Price Surge (https://bsc.news/post/bnb-price-surge-reasons)

[4] Binance News: BNB Hits All-Time High Above $1,100 Amid (https://coinpedia.org/news/bnb-hits-new-all-time-high-1108-key-reason-behind-the-jump/)

[5] BNB Faces Declining Demand and Rise in Sell-offs: What Lies ... (https://icoinmarket.com/news/bnb-faces-declining-demand-and-rise-in-sell-offs-what-lies-ahead/)