BNB flips SOL as new set of meme tokens attracts whales

Binance Coin (BNB) is back above $700, flipping Solana (SOL) to rank in the top 5 coins and tokens. BNB Chain keeps generating FOMO from retail, with whale purchases appearing for a new wave of tokens. 

Binance Coin (BNB) recovered from its recent lows, rallying hard despite the overall slide for other altcoins. BNB traded at $705.52, for a total valuation above $103B. The weakness of Solana (SOL) under $200 made it easier for BNB to climb up the ranks. 

BNB also fits the narrative of selected blue chip altcoins, which are now getting higher liquidity allocations compared to older or forgotten smaller coins. The BNB ecosystem is seen as potentially competitive with other established L1 chains.

BNB Smart Chain gets a boost from DEX swaps

The success of BNB reflected the recent rise in BNB Smart Chain usage, driven by a new wave of DEX activity. BNB reached a recent peak with over 1.12B transactions for the past 30 days, with a growth trend for the past three months. 

The recent spike in activity follows upgrades that make the chain faster. In the future, BNB Smart Chain will offer alternative tools to pay for gas, including subsidized gas fees on apps for totally free transactions. The chain remains dedicated to boosting Web3 usage by making it accessible and seamless. 

This turns BNB Smart Chain into the busiest EVM-compatible chain based on transaction activity. However, BNB Smart Chain carries around 1.28M daily active wallets, compared to Solana’s usual activity of 4.8M daily active wallets. What distinguishes BNB Smart Chain is the high activity turnover. 

The traffic may originate from different types of activities, not all of them organic. Some of the activity comes from higher DEX usage, while the rest may be due to specific campaigns and airdrop farming. Despite this, BNB Smart Chain is regaining attention as a viable venue for memes, special incentives and DeFi.

BNB Smart Chain is having a revival after being left behind as activity shifted to Ethereum’s L2 ecosystem and Solana. The chain was left with much lower activity during the 2022 and 2023 bear markets, as focus shifted away from Binance’s collection of gaming tokens. 

In February, BNB Smart Chain is having a meme token revival, once again showing that liquidity and users will seek out the next potential source of growth. BNB Smart Chain has fees of $0.01, remaining accessible enough for rapid experimental trading. 

Additionally, BNB Smart Chain allows for some protection against sandwich attacks. Before the January boom, one of the reasons for slower BNB Chain DEX usage were precisely the risks of losses due to sandwich attacks. 

While sandwich attacks are still happening, they no longer weigh on DEX traffic. The MEV protection on PancakeSwap means BNB Smart Chain carries more successful DEX transactions, and a smaller share of sandwiched trades. 

Despite this, sandwich trades still find their way into BNB. Over 39% of all blocks contain at least some sandwich attack transactions. BNB Chain relies on block building and several protection tools to avoid this source of losses. The majority of blocks contain only successful trades.

New meme token craze continues on BNB Smart Chain

BNB Smart Chain continues to attract whale wallets, who aim to snag the latest trend of meme tokens launches. 

Influencers and fans of BNB Smart Chain are also publicly supporting hot new tokens, especially Test Token (TST). In the past day, BNB influencer @theveeman accumulated TST and CAKE, while remaining bullish for the entire ecosystem. 

New meme tokens like CaptainBNB and CZ’s dog are currently gaining mentions on social media, becoming the main driver for enthusiasm.

BNB Chain memes are slower to grow, as only TST has gone beyond $150M in market capitalization. The Four.Meme platform seeks to boost its liquidity, striking a recent partnership with ListaDAO. The platform will use lisUSD for funding support, with a 20k lisUSD stipend for top meme projects.

The Four.Meme platform will also actively curate meme projects with its Alpha Boost program. The hand-picked projects will receive extra liquidity, with the promise of building and surviving on BNB Chain. The meme platform takes a different approach compared to Pump.fun, by aiming for its memes to survive for the long term and retain a community.

Currently, the meme platform uses BNB to form its pairs and complete the token bonding curves. This increased demand for BNB, leading to the price rally above $700.

Cryptopolitan Academy: FREE Web3 Resume Cheat Sheet - Download Now