- December 29, 2023
- Posted by: [email protected]
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BNB has experienced an 11.16% surge, surpassing Solana (SOL) in market capitalization and sparking various reactions from traders, triggering a renewed push in the altcoin space.
As the year comes to a close, several assets have been on an upward trajectory as bulls aim for favorable positions ahead of the new year, fueled by heightened anticipation for the potential approval of a spot Bitcoin (BTC) ETF by the United States Securities and Exchange Commission (SEC).
Binance’s native token has made significant strides in the last 24 hours, overtaking Solana to reclaim its fourth position in terms of market capitalization. At the current moment, the asset is trading at $327.70, with a notable 21.3% increase in the past seven days and a remarkable 43% rise over the last 30 days.
A key factor contributing to BNB’s surge is the optimistic sentiment within the community surrounding Sleepless AI on Binance Launchpad. This project aims to integrate Web3 and artificial intelligence (AI) gaming and stands as the 42nd project in the Binance Launchpool.
Despite the surge, on-chain metrics reveal that some traders are expressing skepticism about the upward movement, as indicated by the Relative Strength Index (RSI). The RSI currently sits at 78.4 and needs to stay below 65, as a high RSI suggests the possibility of a price correction.
While BNB has achieved a year-to-date (YTD) increase of 34.30%, its growth has been relatively slower compared to other cryptocurrencies like BTC and Ethereum (ETH). Despite BTC and ETH experiencing over a 55% decline in 2022, they have rebounded in the last 12 months, with BTC posting gains of 156% to reach $43,135, and ETH gaining 102%, including institutional product gains after several months in a downturn.
Analysts attribute the sluggish growth of BNB to the recent challenges faced by Binance, including lawsuits from the SEC and the Commodity Futures Trading Commission (CFTC), culminating in a settlement that led to the departure of its former CEO, Changpeng Zhao. Administrative issues aside, spot trading volumes on the exchange have dwindled for consecutive months, resulting in a loss of market share to competitors.
Solana, which dominated discussions in the past 14 days with substantial growth, temporarily displaced BNB as the fourth-largest crypto. However, SOL has experienced a 7.9% drop in the last 24 hours, trading at $105, with a 17% decline in daily trading volumes at $4.3 billion. BNB now leads with a significant $4.6 billion market cap difference.
Other altcoins, such as ETH and Cardano (ADA), have recorded daily gains exceeding 5%, while Ripple (XRP) and Chainlink have seen increases of 2.92% and 10.74%, respectively.
