Can BNB mirror Solana’s $295 cycle high pathway amid Binance Wallet massive growth?
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Binance Wallet onboarded 4.3 million users and controlled over 90% of the weekly crypto swap market.
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BNB could be the key beneficiary in the long run if the growth continues.
In just one week, Binance Coin [BNB] Wallet onboarded 4.3 million new users on-chain, extending its weekly crypto swap market share to +90%.
If the trend continues, this could set up the native BNB token’s further rally.
Source: Dune Analytics
BNB’s Flywheel Dynamics
According to Dovey Wan, founder of Primitive Ventures, 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,” she stated.
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 the BNB token and a significant growth funnel for the wallet, noted Wan.
Furthermore, Wan mentioned that this surge could have been boosted by the OKX wallet’s temporary discontinuation in late 2024.
In the past week alone, Dune Analytics data showed that Binance Wallet managed over $3B in weekly swapped volume.
When examined at the chain level, BNB Chain/BSC was the second most dominant in weekly DEX volumes at 19%, compared to Solana’s [SOL] 28%.
Source: DeFiLlama
In fact, DEX volumes across the BNB chain ecosystem witnessed a remarkable 128% increase last week, nearing $19B.
This surge underscores the chain’s robust traction during a risk-on market sentiment. If this positive sentiment continues, the most effective way to capitalize on this trend may be through exposure to BNB.
For reference, SOL reached a cycle high of $295 in January driven by the debut of a popular memecoin. This surge was largely attributed to the skyrocketing demand for the token, which serves as transaction fees within the Solana DeFi ecosystem.
A parallel scenario could unfold if the growth of Binance Wallet and the overall BNB chain expands significantly.
On the 3-day price chart, BNB briefly encountered selling pressure after tapping the $690-$720 supply zone. However, the $640-645 price zone remained a key short-term support level, situated above the mid-range of a multi-month channel.
In the immediate term, BNB may oscillate within the $600-$720 range; however, a bullish breakout from the two-year channel could propel it towards $900.
Source: BNB/USDT, TradingView
Conclusion
As BNB continues to leverage the massive growth of the Binance Wallet, its potential for significant price movement becomes increasingly evident. Monitoring market conditions will be essential for investors looking to capitalize on this trend. The developments in user engagement and transaction volumes could very well condition the price trajectory of BNB in the coming weeks.
