Institutional Confidence Lifts BNB to New Heights Amid Centralization Concerns

BNB continues to demonstrate resilience in the face of broader market declines, with its Total Value Locked (TVL) reaching a record $13.4 billion in 2025—the highest level since 2022. This surge in TVL is attributed to a combination of sustained user engagement and the token’s strong price performance. The BNB Chain has maintained over 14 million active addresses for nine consecutive weeks, indicating robust adoption and ecosystem activity. Meanwhile, the price of BNB has remained just 3% below its all-time high, even as most leading cryptocurrencies have seen significant corrections from their peak values.

The strength in BNB’s performance is further reinforced by institutional adoption, which has played a pivotal role in the token’s growth. Publicly traded companies such as Windtree Therapeutics, Nano Labs, and Liminatus Pharma have added BNB to their corporate treasuries. Notably, BNB Network Company, a subsidiary of CEA Industries Inc., recently acquired 200,000 BNB valued at approximately $160 million, with the firm aiming to become the largest publicly traded BNB treasury company in the United States. This trend signals growing institutional confidence in BNB as an alternative to Bitcoin and Ethereum.

Interestingly, institutional interest extends beyond corporations. Bhutan’s sovereign wealth fund, Druk Holding & Investments, has also disclosed BNB holdings, a development that briefly pushed the token’s price near $870. These institutional and corporate movements have not only contributed to BNB’s market capitalization but have also enhanced its visibility in traditional financial markets. At one point, BNB’s market value even surpassed that of major equities such as Nike and DoorDash, underscoring its growing appeal among institutional investors.

Despite this institutional support, the BNB ecosystem remains highly centralized in terms of token distribution. According to BSCScan, the top 11 wallets control over 55% of the BNB supply, with Binance itself holding a significant portion through various wallets. One single whale address alone holds 19.9% of the supply, reflecting extreme concentration. This distribution raises concerns about market manipulation and centralization, particularly in a sector that often emphasizes decentralization as a core principle. Analysts have pointed out that the influence of these large holders over price, liquidity, and governance could limit the token’s long-term viability as a decentralized asset.

BNB’s tokenomics also play a critical role in shaping its market dynamics. Binance’s quarterly token burn program, which permanently removes a portion of BNB from circulation, has contributed to a deflationary trend. As supply decreases, the token becomes scarcer, potentially increasing its value. However, the same mechanism also intensifies the concentration of holdings, as the remaining tokens become a larger portion of the total supply. This dual effect has led to both bullish and bearish interpretations of BNB’s future, depending on market conditions and regulatory developments.

Regulatory scrutiny has also intensified in 2025, particularly in the U.S. and European Union, where authorities are examining whether BNB should be classified as a security. Binance’s dominance over the token’s distribution and governance has drawn attention from regulators, who are increasingly concerned about centralized control in what is otherwise a decentralized ecosystem. While DeFi platforms and liquid staking protocols have begun to diversify some of BNB’s usage, the overall structure remains heavily influenced by a small group of stakeholders.

Source: [1] BNB Defies Market Retreats With Record TVL of $13.4B (https://cryptopotato.com/bnb-defies-market-retreats-with-record-tvl-of-13-4b/) [2] BNB Rich List 2025: Binance, Whales and Who Really ... (https://www.ccn.com/education/crypto/bnb-rich-list-binance-whales-control-token/)