The recent increase in BNB’s price has caught a lot of attention in the crypto community. Even though the BNB Chain’s main token has dropped more than 2. 5% in the last day, the cryptocurrency hit a new highest point above $1,300 earlier this week.

The recent increase has moved BNB ahead of Ripple’s XRP and Tether’s USDT stablecoin. As of now, BNB is the fourth biggest cryptocurrency, worth $170 billion based on CoinMarketCap.

BNB Chain recently saw a big surge in trading meme coins. On October 8, the total trading volume on BNB Chain reached about $20. 5 billion, while on Solana it was about $12. 7 billion, which means BNB Chain had around $7. 8 billion more in trades.

Earlier this week, a trader took $3,000 and turned it into $2 million in just a few days by quickly buying a popular meme cryptocurrency on the BNB Chain. The rise of BNB Chain’s meme coins stopped quickly when Binance’s founder, Changpeng “CZ” Zhao, said that his social media posts shouldn’t be seen as advice or suggestions for trading.

What’s causing BNB to go up

Forget the memes and hype; experts think that BNB’s recent increase is because of how big Binance is and how many users it has. The well-known cryptocurrency exchange received $14. 8 billion last quarter, which is directly linked to increased activity on the BNB Chain.

Zac Cheah, one of the founders of Pundi AI—a system for managing data on the BNB Chain—told Cryptonews that BNB has always been useful because of real things happening on the BNB Chain. Cheah thinks this relationship has become even stronger as the system develops.

“Whenever gas fees go down or new apps in DeFi, GameFi, or AI become popular, it leads to more activity on the blockchain and strengthens BNB’s role as the main currency of the ecosystem,” Cheah said.

So, Cheah thinks that the rise in BNB’s price shows how strong the network is. “BNB Chain has recently seen a steady number of users, a lot of transaction activity, and more developers getting involved,” he said.

Marwan Kawadri, the DeFi leader and head of EMEA at BNB Chain, told Cryptonews that the ecosystem is starting to show more real-world examples of use.

“We’re noticing increased use of real-world assets turned into tokens, payments, and decentralized finance (DeFi), all made possible by very low fees and fast processing. ” Kawadri said that people in the market see that this isn’t just talk; it’s the usefulness and growing use of the product that is causing a lot of activity.

YCharts reports that on October 9, the amount of money moved on Binance Smart Chain was $27. 49 The month before, the transaction amount was $13 million, which is more than double.

BNB Chain’s Technical Upgrade

The increase in transactions on the BNB Chain is due to recent improvements in the network. Kawadri said that the BNB Chain technology has improved. It now provides quicker transactions, can handle more activity, and has lower fees all the time.

“We’re creating a big system for trading that can grow easily. ” He said that mix is appealing to both active traders and companies.

For example, the BNB Chain’s Maxwell update in June this year cut block times in half, going from 1. 5 seconds to 0. 75 This is the fastest improvement the network has made so far. This upgrade made BNB Smart Chain the fastest big Layer-1 (L1) blockchain, which makes BNB Chain more appealing for dApps, traders, and developers.

Keeping this in mind, Cheah said that BNB Chain strikes a good balance between speed, ease of use, and how developed its ecosystem is. “It gives developers a useful tool: a quick and cheap way to grow their products easily. ”

He explained that the new 0. 05 Gwei gas fee makes the BNB Chain one of the cheapest options available. This is important for AI and data-heavy applications like ours.

Kawadri also mentioned that BNB Chain plans to make more improvements this year. These include increasing the block gas limit by 10 times, making transactions complete faster (down to 450 milliseconds on the main network), and keeping fees very low.

A Successful Community of Builders

The BNB Chain community for builders is doing really well. On October 8, it was announced that BNB Chain has a $1 billion Builder Fund, supported by YZi Labs, which aims to help current and future developers on the network. The announcement also says that the BNB Chain system has more than 460 million users right now.

The BNB Most Valuable Builder program and the new $1 billion Builder Fund show that BNB Chain is committed to developing new ideas for the future. It’s not just about trends in funding; it’s a useful source of money for things like AI, DeFi, and real-world assets. “This interests developers who want to create things that will last for the next ten years, not just for the next market upturn,” Cheah said.

Money Coming from Institutions and Government Budget Spending

Besides being technically advanced and having a strong community of builders, the rise in BNB’s price is probably also because many companies and organizations have revealed that they own a lot of BNB.

For example, CEA Industries (BNC) is said to have added BNB to its funds. On October 7, the company that sells consumer products announced that it owns 480,000 BNB tokens, which it bought for an average price of $860 each. This is about a total investment of around $412. 8

Also, B Strategy, a company that invests in digital assets and was started by former Bitmain executives, just announced they will create a $1 billion fund to invest in BNB.

Things to Think About

Although the BNB Chain is becoming more popular, it still faces several problems.

Mati Greenspan, the founder and CEO of Quantum Economics, told Cryptonews that how people see the BNB Chain ecosystem is still a big challenge.

“Many think it is too focused on one place and too connected to Binance. ” “The technology is good, but it needs to be used in real life before a lot of people start using it,” said Greenspan.

Because of this, Greenspan thinks that for a little while, the crypto world will see more excitement and silly trends about it. He said that if the BNB Chain keeps improving on speed and privacy, it could become a strong foundation for many uses in the future.