BNB was just 17% below its ATH at press time, having already broken past the $700-mark twice in 2024
Staking demand has continued to soak up circulating supply
Binance Coin’s [BNB] liquidity dynamics have been looking rock solid lately. If we look closely, while most high-cap assets seemed to be at least 40% below their all-time highs, BNB was trailing by just 17% at press time.
In fact, BNB stood out as one of the very few large-cap tokens to have printed new highs during last year’s “Trump pump” cycle. The only other major alt to match that feat was Solana [SOL].
However, the catch is that while Solana’s spot price was 47% below its ATH, BNB’s marginal 17% gap highlighted a level of market resilience that could be tough to ignore.
Could this divergence be signaling something deeper? Beyond just on-chain flows, is there a less visible, but highly impactful factor helping BNB separate itself from the crowd – One you really shouldn’t be sleeping on?
Market divergence in motion – BNB’s strength isn’t a fluke
No question, the 2021 cycle was a landmark breakout phase for altcoins.
Most high-caps printed their first major parabolic moves. Ethereum [ETH] pierced the $4,000-threshold, and even Dogecoin [DOGE] caught retail fire, hitting $0.73 in a historic meme-fueled rally.
BNB was no exception. It surged to just under $700 at the height of the cycle.
But, here’s where things get technically compelling. While most top-tier assets have struggled to reclaim those levels, BNB has already broken above that ceiling not once, but twice in 2024. It even logged a new all-time high of $793 in early December.
Source: TradingView (BNB/USDT)
As it stands, it’s close to 17% away from testing that level again. According to AMBCrypto’s analysis, BNB’s fundamentals have been rock solid too.
Derivatives liquidity hasn’t been overheating, Total Value Locked (TVL) just hit a three-year high above $6 billion, and stablecoin supply is at a two-year peak. All this is evidence that there’s plenty of capital waiting on the sidelines.
On both the technical and on-chain fronts, BNB’s resilience makes a lot of sense. Demand is still strong, with a big chunk of tokens locked up in staking, keeping supply tight.
However, beyond the numbers, it is BNB’s smart economics and solid tokenomics that are helping it stay ahead of the game.
Triple threat – Burns, demand, and new earnings boosts
Beyond the fundamentals, the real value of any coin comes down to supply and demand. For its part, BNB’s numbers appeared to be rock solid.
BNB started with 200 million tokens total, and Binance has since promised not to create any more. What sets BNB apart is the regular token burns, where they permanently destroy a chunk of tokens every few months. The plan? Slash the supply down to 100 million, half of what it started with.
Each burn usually wipes out between $800 million and $1 billion worth of BNB, depending on the price at the time. So far, over 60 million tokens have been burned, leaving about 140 million in circulation.
Source: Glassnode
Plus, a lot of those tokens are staked or locked up inside the Binance ecosystem, which means even fewer are out there freely trading.
That mix of a capped supply, steady burns, and locked tokens keeps BNB scarce and helps support its price over the long haul. Compared to other high-caps with circulating supplies sitting in the billions, BNB’s tighter supply dynamics stand out.
That’s why it’s clear Binance Coin is defying the broader altcoin-fueled downtrend and steadily closing in on its all-time highs again.