BNB May Extend Rally After Record High as Fee Cuts and Institutional Demand Drive Momentum

• BNB reached $1,114.67 after a short squeeze and network fee reductions

• Daily trading shows BNB up 6.1% and weekly gains of 17.2% (CoinGecko data cited as source text)

• BNB market cap exceeds $154 billion; monthly active users doubled and daily transactions rose tenfold (Animoca Brands report, cited as source text)

BNB surge: BNB reaches $1,114.67 after fee cuts and short squeeze; learn why network upgrades and institutional demand pushed market cap past $154B — read analysis.

What caused the BNB surge to an all-time high?

BNB surge to $1,114.67 was driven by a short squeeze, lowered transaction fees on BNB Chain and rising institutional demand, which together boosted trading and on-chain activity. Market sentiment turned bullish after a breakout above $1,084, lifting short-term targets and increasing liquidity flows.

How did fee cuts and short squeezes drive BNB’s rally?

Fee cuts to roughly $0.005 per transfer on BNB Chain reduced friction for users and developers, accelerating network usage. Over $7.7 million in short positions were liquidated in the move, amplifying a short squeeze that compressed supply and pushed prices higher, according to industry analysts.

Why does on-chain activity matter for BNB price?

Front-loaded on-chain metrics show user and transaction growth precedes sustained demand. BNB Chain monthly active users doubled to over two million and daily transactions rose from 1 million to 10 million in the past year, signaling deeper product-market fit and increased utility for the token.

What role did projects and DEX activity play?

Projects like Aster and PancakeSwap increased capital and user inflows. Stablecoin supply on the chain rose by nearly $2 billion (about 17%) over two weeks, supporting liquidity for swaps and futures and strengthening BNB’s utility as a settlement and staking asset.

Frequently Asked Questions

How high can BNB go in the short term?

Analysts cited short-term upside near $1,200 after the breakout, contingent on continued demand and support holding between $1,000–$1,084. Momentum indicators like RSI suggest short-term pullback risk, so targets may be tested on volatility.

Who provided the market commentary on this rally?

Market commentary in this report includes quotes from Dean Chen (analyst at Bitunix) and Illia Otychenko (Lead Analyst at CEX.IO). Network data references an Animoca Brands report and market pricing references CoinGecko as source text.

Key Takeaways

• Price action: BNB reached $1,114.67 and led top-10 gains, up 6.1% on the day.
• On-chain fundamentals: Monthly active users doubled; daily transactions increased tenfold, supporting network utility.
• Investor guidance: Watch the $1,000–$1,084 support zone and monitor RSI for pullback signals before adding exposure.

Conclusion

BNB’s surge reflects a mix of compressed short positions, meaningful fee reductions on BNB Chain and growing institutional interest, lifting market cap above $154 billion. Investors should weigh improved network fundamentals against technical indicators and regulatory developments. For continuing coverage and data-driven updates, follow COINOTAG’s analysis and market briefs.

Published: 2025-10-03 · Updated: 2025-10-03