BNB Primed for Takeoff? On-Chain Metrics Scream Bullish

Binance Coin’s price action looks suspiciously like a coiled spring—and the data backs it up. Exchange outflows hit a 90-day high this week as whales quietly accumulate. Meanwhile, the BNB chain just processed its highest weekly transaction volume since the 2021 bull run.

Key signals flashing green:

- Burn rate accelerates: Binance torched $500M worth of BNB last quarter—shrinking supply while demand spikes.

- Institutional FOMO: Grayscale’s BNB trust now trades at 18% premium to spot. Wall Street’s late as usual.

- Technical breakout: The 50-week MA just flipped support after 14 months of resistance. Textbook bullish reversal.

Of course, no crypto rally is complete without some absurd leverage. Open interest in BNB perpetual swaps just hit an ATH—because nothing says ’healthy uptrend’ like degenerate traders going 100x long.

Source: Dune Analytics

BNB’s flywheel

According to Dovey Wan, founder of Primitive Ventures, a crypto investment firm, the growth has surpassed other ‘centralized’ wallets like OKX and MetaMask.

She pinned it on meme farming and airdrop hunting. 

“Its market share just rips after launching of the alpha program, turned the wallet into a meme farming engine, token gated airdrop club and yield shovel.” 

Notably, the alpha and airdrop programs often require users to hold or lock in BNB to participate, creating another demand line for the native token. 

As a result, the campaigns, especially the alpha listing, have become a flywheel for BNB token and ‘funnel growth’ for the wallet, noted Wan. 

Additionally, Wan stated that the growth could have been accelerated by the OKX wallet’s temporary discontinuation in late 2024. 

In the past week alone, Dune Analytics data showed that Binance Wallet handled over $3B in weekly swapped volume. 

When zoomed out at the chain level, BNB Chain/BSC was the second most dominant in weekly DEX volumes at 19% against Solana’s [SOL] 28%. 

Source: DeFiLlama

In fact, DEX volumes across the BNB chain ecosystem jumped 128% last week (nearly $19B).

This underscored the chain’s traction during risk-on sentiment. If the positive market sentiment persists, the best way to capitalize on this trend WOULD be via an exposure to BNB. 

For reference, SOL hit a cycle high of $295 in January after TRUMP memecoin debuted. This was due to the massive demand for the token, used as transaction fees, in the solana DeFi ecosystem. 

A similar scenario could play out if the Binance Wallet and overall BNB chain growth explode. 

On the 3-day price chart, BNB briefly faced sell pressure after tapping the $690-$720 supply zone (red). But the $640-645 price zone was also a key short-term support and was above the mid-range of a multi-month channel. 

In the short term, BNB could be range-bound between $600-$720; however, a bullish breakout from the 2-year channel could push it to $900. 

Source: BNB/USDT, TradingView