BNB Crypto Price Soars 11 Percent Even Though Binance Is Threatened With Punishment

Binance's BNB crypto asset. (Photo; Doc. InvestorPlace)

JAKARTA - Binance Coin (BNB), the cryptocurrency which is the main asset of Binance Smart Chain, recorded an 11 percent increase in prices on December 26, reaching its highest level since June of $277 (Rp4.28 million). This increase is a continuation of the bullish trend that began last week, when BNB rose from $233 (Rp3.6 million) to $264 (Rp4.08 million) in a short time.

Although the price of BNB fell slightly the following day, the overall trend still shows the potential for further increases, with BNB having strengthened more than 14 percent in a week.

The increase in BNB prices is quite surprising, given that Binance, the world's largest crypto exchange is facing serious legal issues. Binance founder and former CEO Changpeng Zhao has pleaded guilty to money laundering charges and agreed to pay a fine of $4.3 billion (Rp66.5 trillion) to the US government.

In addition, Zhao must also resign from his post and risk imprisonment for up to 18 months. This case is still ongoing and there has been no final decision from the court.

BNB Investors Are Not Affected

Usually, when there is a legal problem like this, investors will stay away from related assets, as can be seen from the massive sale of BNB in November, when prices fell from $272 (Rp4.2 million) to $228 (Rp3.52 million) in a few days.

However, BNB holders do not appear to be affected, even taking advantage of low prices to increase their holdings. This is evident from the increase in BNB prices which passed the November highest level of $264 (Rp4.08 million) this week.

One of the famous crypto analysts, Captain Faibik, assesses that this coin is entering a bullish phase. Faibik shared his views on his 75,000 followers on his X account. He said that BNB had left the station and was ready to go to a new high in the first half of 2024.

One of the factors driving the increase in BNB prices is the growth of the Binance Smart Chain, a blockchain network that supports various decentralized applications (dApps) that are popular among crypto users.

According to data from DappRadar, the number of addresses interacting with dApps on the Binance Smart Chain has increased by 7 percent in the last 30 days, reaching more than 1.2 million unique addresses. Some of the most widely used dApps on the Binance Smart Chain are PancakeSwap, MOBOX, and Venus.

In addition, the increase in BNB prices was also influenced by the general crypto market conditions, which have shown positive momentum since October. Several major cryptocurrencies, such as Bitcoin, Ethereum, and Solana, have recorded significant price increases, reflecting high demand and bullish sentiment among investors.