BNB Chain Projects See Surge in Activity, Token Prices and Trading Volume as BNB Hits Record High

Projects across the BNB Chain ecosystem recorded a jump in activity, token prices and trading volume as the blockchain’s native BNB token hit a record price

Activity on the BNB Chain ecosystem surged, with token prices and trading volumes skyrocketing.

According to CoinGecko, trading volumes of BNB Chain-based tokens increased by 124% over the last 24 hours. Among the tokens, floki (FLOKI), a dog-themed meme coin present on both Ethereum and BNB Chain, led the gains with a surge of over 25%. Other tokens that saw significant gains include PancakeSwap’s CAKE, which rose by 15%.

Among projects with a market capitalization of less than $200 million, SENSI, the token of trading service Sensi, experienced a remarkable surge in both price and trading volume. The price of SENSI soared by 900%, while trading volumes increased from $14,000 on Monday to $100,000 on Wednesday morning.

Data from DefiLlama showed that the total value locked (TVL) on BNB ecosystem projects increased by nearly 8%. PancakeSwap and lending application Venus led the gains in TVL.

Meanwhile, net inflows into the BNB ecosystem amounted to over $2.4 million, breaking a trend of net outflows that had persisted since May 30.

While there was no immediate catalyst for BNB’s price increase, several ongoing activities may have contributed to boosting the token’s fundamentals.

“BNB's price is benefiting from years of token burns and token lock initiatives for their launchpad program,” explained Nick Ruck, head of growth at bitcoin yield project BitU, in a Telegram message.

“BNB protocols have also ramped up campaigns and activities due to cheaper gas fees and have cultivated a large and energetic user base.”

Burns permanently remove tokens from the circulating supply by sending them to an address that is not controlled by anyone. Commencing in 2021, these burns are determined by a portion of the gas fees used in BNB Chain transactions. According to blockchain trackers, nearly $400,000 of BNB tokens were burned in the last seven days.

“BNB chain is probably the most undervalued chain in all of crypto, partly due to some anti-Binance/BNB narratives being pushed in some quarters,” said a Floki developer who wished to be identified only as B.

“But from a fundamentals perspective, the BNB chain is one of the best chains to build on: it's fast, scalable, and—arguably—the chain that is used the most by the majority of the non-Western world.”

Binance Smart Chain, which was initially developed by BNB Chain, continues to receive support for its development and funding from the world's largest cryptocurrency exchange, Binance.

“We are prioritizing the BNB chain for the Floki Trading Bot, which will be going live soon, as well as for several other products,” B said. “This strategy has paid off: Floki currently has 5 times more holders on the BNB chain than on ETH, and the vast majority of our community consists of people who use the chain.”