BNB, the native cryptocurrency of the BNB Chain, has recently captivated the crypto market with an extraordinary surge, propelling it to the prestigious position of the third-largest digital asset by market capitalization. This impressive ascent has not only redefined its standing but also sparked considerable discussion and speculation within the wider community regarding the drivers behind its rapid growth.
Meteoric Rise and Market Impact
In a remarkable display of growth, BNB officially surpassed XRP to claim the third spot among cryptocurrencies by market capitalization. The asset witnessed a nearly 30% increase in just seven days, trading at $1,326 and boasting a market capitalization of $182 billion. This significant leap contrasts sharply with the broader crypto market's more modest gains, as Bitcoin and Ether saw increases of approximately 5% and 8.4% respectively during the same period. BNB's rapid accumulation of $40 billion in value within a week is particularly noteworthy, especially when compared to the over two months it took earlier this year to achieve similar growth. The climb coincided with increasing adoption, exemplified by the launch of a government-backed BNB fund in Kazakhstan, signaling expanding utility and reach.
Whispers of Controversy and Market Manipulation
Despite its impressive performance, BNB's outsized gains have fueled a wave of speculation and controversy across social media platforms. Market observers on Reddit and X (formerly Twitter) have openly questioned the sustainability and underlying drivers of this rapid appreciation, with some outright alleging market manipulation. Accusations include suggestions that Binance, the entity behind BNB Chain, might be actively "buying millions of BNB to liquidate short positions," thereby artificially inflating its price. Compounding these concerns are unconfirmed reports from June 2024 suggesting that Binance founder Changpeng "CZ" Zhao personally holds 64% of the circulating BNB supply, which would amount to a staggering $116 billion in crypto assets based on current valuations. Neither Binance nor its executives, including CZ, have directly addressed these market manipulation rumors, with CZ's only public comment being a post encouraging continued development on BNB Chain. Meanwhile, official BNB Chain channels have highlighted strong fundamentals, such as 60 million monthly active addresses, to support the token's robust performance.
