benefited from the announcement of the launch of a platform that allows the creation of meme cryptocurrencies on its blockchain, encouraging investors.
The BNB cryptocurrency reached a new price record on Wednesday, the 4th. After accumulating a rise of more than 20% in the last 24 hours, the asset surpassed US$ 788 for the first time in history, according to data from the CoinGecko platform. At the moment, the digital currency has the fourth highest daily appreciation in the crypto market.
The token’s surge came shortly after the announcement of a new platform that will allow the creation of meme cryptocurrencies on the BNB Smart Chain, the cryptocurrency’s blockchain. The surge reflects investors’ expectations that the new functionality will attract users and capital, expanding demand for the token.
The protocol that will enable this creation, PancakeSwap, has already been launched on the network. Despite the surge, BNB’s continued good performance will depend mainly on the project’s ability to effectively attract users and creators of meme cryptocurrencies. Otherwise, the asset could give back much of its recent gains.
The investments follow a similar logic to those in Solana. The blockchain has gained ground as users' preferred network for creating meme cryptocurrencies in 2024, which has helped boost the cryptocurrency throughout this year. SOL, the project's native token, has soared more than 270% year-to-date.
BNB has a similar performance, accumulating a 233% increase in the year, according to CoinGecko, but it has not been among the market highlights in recent months. In addition, the cryptocurrency has also been surpassed by XRP in market value, which has seen a significant appreciation in recent months and has established itself in third place.
Currently, BNB ranks fifth in terms of market capitalization, behind Bitcoin, Ether, XRP, and USDT. Throughout 2024, the cryptocurrency has been in an intense dispute with Solana, which has surpassed the asset on a few occasions and currently has a market capitalization of US$110 billion, compared to the US$112 billion that BNB reached after its record.
The asset's new record also reflects the trend of investors investing in alternative cryptocurrencies to Bitcoin, the so-called altcoins, soon after the largest cryptocurrency on the market broke price records and began bullish cycles. The tradition has benefited several assets, including BNB, XRP and Tron's TRX.
At the same time, potential profit-taking by investors could drive down the asset's price in the coming hours. In the long term, blockchain metrics, such as the number of users and amounts traded, should determine the future price of the digital currency.