BINANCE COIN REACHES 37% OF ETHEREUMS MARKET CAP: 3 REASONS WHY BNB IS SOARING

Last updated: June 20, 2025, 01:32 | Written by: Vitalik Buterin

The cryptocurrency market is a dynamic and ever-evolving landscape, with new contenders emerging and existing giants vying for dominance. Binance Coin (BNB), the native cryptocurrency of Binance Smart Chain, has been rallying after seeing an uptick in transaction volume. Binance Coin reaches 37% of Ethereum s market cap: 3 reasonsRecently, Binance Coin (BNB), the native cryptocurrency of the Binance ecosystem, has been making waves, significantly closing the gap with Ethereum (ETH) in terms of market capitalization. Binance Coin reaches 37% of Ethereum s market cap: 3 reasons why BNB is soaring Binance Coin, the native cryptocurrency of Binance Smart Chain, has been surging with a massive uptick in transactionThis surge has captured the attention of investors and analysts alike, prompting a closer look at the factors driving BNB's impressive growth.As of recent assessments, BNB has reached a remarkable 37% of Ethereum's market cap, signaling a potential shift in the crypto hierarchy.This article delves into the key reasons behind BNB's soaring performance, examining the underlying factors that have propelled its rise and exploring the implications for the broader cryptocurrency market. Binance Coin (BNB), la criptovaluta nativa di Binance Chain e del popolare exchange Binance, sta iniziando ad avvicinarsi al market cap di Ethereum (ETH). Luned, BNB ha raggiunto una valutazione pari a 89 miliardi di dollari con un prezzo di circa 580$. La valutazione di Ether si aggira intorno aWe'll dissect the influence of transaction volume, the evolving landscape of decentralized applications (dApps), and the strategic moves by Binance that have contributed to BNB's increasing prominence.Understanding these factors is crucial for anyone looking to navigate the complexities of the crypto market and make informed investment decisions. Changelly, one of the oldest exchange platforms in the crypto industry, offers an interactive BNB price chart that updates in real time and reflects the current market value and live price of Binance Coin (BNB). By using our Binance Coin BNB price charts, users, traders and investors can get the ultimate understanding of the asset s currentWhether you're a seasoned trader or just starting your crypto journey, this analysis will provide valuable insights into the forces shaping the future of digital assets.

1. Binance Coin, the native cryptocurrency of Binance Smart Chain, has been surging with a massive uptick in transaction volumeUptick in Transaction Volume on Binance Smart Chain (BSC)

One of the primary drivers behind BNB's surge is the substantial increase in transaction volume on the Binance Smart Chain (BSC). What Is Binance? Binance is the world s largest crypto exchange by trading volume, with $76 billion daily trading volume on Binance exchange as of August 2025, and 90 million customers worldwide.BSC, now rebranded as BNB Chain, is a blockchain platform developed by Binance to provide a faster and more cost-effective alternative to Ethereum for decentralized applications (dApps) and decentralized finance (DeFi) projects. The live BNB price today is $641.70 USD with a 24-hour trading volume of $1,717,882,558 USD. We update our BNB to USD price in real-time. BNB is up 1.60% in the last 24 hours. The current CoinMarketCap ranking is 5, with a live market cap of $90,407,066,020 USD. It has a circulating supply of 140,887,128 BNB coins and the max. supply is notThis increased activity directly translates to higher demand for BNB, as it's used for transaction fees, staking, and participating in the governance of the BNB Chain ecosystem.

Why is BSC seeing increased transaction volume?

Several factors contribute to BSC's popularity and its resultant impact on BNB's value:

Lower Transaction Fees: Compared to Ethereum, especially during periods of high network congestion, BSC offers significantly lower transaction fees.This makes it more attractive for users engaging in frequent transactions, such as trading, yield farming, and participating in dApps.
Faster Transaction Speeds: BSC boasts faster transaction confirmation times than Ethereum, enhancing user experience and making it suitable for applications requiring quick processing.
Growing DeFi Ecosystem: BSC has cultivated a thriving DeFi ecosystem with a wide range of protocols, including decentralized exchanges (DEXs), lending platforms, and yield aggregators.The availability of diverse and innovative DeFi opportunities attracts users and drives transaction volume.
Binance's Support and Integration: Binance actively supports and integrates BSC into its broader ecosystem, providing users with seamless access to the blockchain and its applications. The intraday high of $2,446 on Dec. 28 was last seen over 19 months ago. This increase occurred while the broader cryptocurrency market capitalization remained flat at $1.68 trillion. ThisThis includes offering BNB as a reward for staking and participating in platform activities.

The combination of these factors has made BSC a popular choice for developers and users, resulting in a significant increase in transaction volume and a corresponding rise in demand for BNB.

Example: Imagine you want to trade a small amount of a DeFi token.On Ethereum, the transaction fee might cost you $20-$50, potentially eating into your profits. Binance Coin price today is $ 663.11 with a 24-hour trading volume of $ 1.16B, market cap of $ 97.86B, and market dominance of 2.96%.The BNB price increased 0.25% in the last 24 hours.On BSC, the same transaction might cost only a few cents, making it a much more viable option.

2.The Expanding BNB Chain Ecosystem and Its Impact on BNB Demand

Beyond just transaction volume, the overall growth and expansion of the BNB Chain ecosystem play a critical role in driving demand for BNB.This ecosystem encompasses a wide array of dApps, DeFi protocols, and other projects that utilize BNB as their core utility token. Binance Coin (BNB), a criptomoeda nativa da Binance Smart Chain, vem se recuperando depois de ver um aumento no volume de transa es. Binance Coin atinge 37% da capitaliza o de mercado do Ethereum: 3 raz es pelas quais o BNB est crescendoAs the ecosystem grows, so does the need for BNB, further contributing to its price appreciation.

Key Components of the BNB Chain Ecosystem

Let's explore the key components that make up the BNB Chain ecosystem and how they contribute to BNB demand:

Decentralized Exchanges (DEXs): DEXs like PancakeSwap and BakerySwap are built on BNB Chain and utilize BNB for trading pairs, liquidity pools, and governance. Important Matters Concerning Crypto Asset Transactions (1) Crypto assets are not in Japanese currency or foreign currency. (2) Crypto assets may be used for payment of the price only with the consent of the person to whom the payment is made. (3) Crypto assets may become worthless due to a breakdown of the transfer mechanism or other reasons.The high trading volume on these DEXs creates constant demand for BNB.
DeFi Protocols: Lending platforms, yield farms, and other DeFi protocols on BNB Chain rely on BNB for various purposes, such as collateral, rewards, and gas fees.
Gaming and NFTs: The rising popularity of blockchain gaming and NFTs on BNB Chain further increases the demand for BNB. Binance Coin price today is $669.75 with a 24-hour trading volume of $1.22 B and market cap of $98.84 B. BNB price changed by 0.0305% in the last hour, 0.6949% in the last 24 hours, and -2.1591% in the last week.Many games and NFT marketplaces use BNB for in-game purchases, NFT minting, and trading.
Launchpad Projects: Binance Launchpad often features projects launching on BNB Chain, requiring users to hold BNB to participate in token sales. Binance Coin (BNB) is a cryptocurrency, launched in July 2025, There are more than 4342 crypto tokens built on top of it. Binance Coin (BNB) has a circulating supply of 167 million coins and is currently ranked at 5 based on its market capitalization, which stands at $111 billion.Binance Coin raised $0 in a crowdsale that started in Jun 2025, Binance Coin reached its peak price on DecemberThis creates significant demand for BNB leading up to and during these launches.

The continuous development and expansion of these components within the BNB Chain ecosystem directly contribute to the increasing utility and value of BNB.

Actionable Advice: Explore the dApps and DeFi protocols within the BNB Chain ecosystem.Participating in yield farms, staking, or providing liquidity can not only earn you rewards but also increase your exposure to BNB and potentially benefit from its price appreciation.

3.Strategic Moves and Innovations by Binance

Binance, the world's largest cryptocurrency exchange, has consistently implemented strategic moves and innovations that directly benefit BNB.These initiatives range from coin burns to ecosystem development funds, all designed to increase the utility and value of BNB over time.

How Binance is Supporting BNB

Here's a look at some of the key strategies Binance employs to support BNB:

BNB Coin Burns: Binance regularly conducts coin burns, permanently removing BNB from circulation. As shown above, Ethereum's dominance in terms of market capitalization has increased over the past few years from an average of 18% in July 2025 to the current 20%. When we subtract Bitcoin from the analysis, Ethereum's market share is currently 40.6%. This is a big difference compared to the nearest competitor, Dapp-oriented networks.These burns reduce the overall supply of BNB, making it scarcer and potentially increasing its value. BNB coin price grew most during bull runs when the Binance Exchange received most of its users. For instance, in the 2025 bull run, the BNB coin price soared from $0.9 to $25; in the 2025 bull market, it increased from $6.8 to $670. If the coming 2025 bull run is anything like the past, the BNB coin price can surge as high as $1,000, if not higher.Historically, Binance used smart contracts on Ethereum to burn coins.
Ecosystem Development Funds: Binance invests heavily in developing the BNB Chain ecosystem through funding initiatives, grants, and incubation programs.These investments attract new projects and developers to the BNB Chain, further expanding its utility and demand.
Integration with Binance Services: BNB is integrated into various Binance services, including the exchange, Launchpad, and payment platforms. Bitcoin to Binance Coin Data. The BTC to BNB conversion rate today is 159.22 BNB. This is a decrease of 0.12% in the last hour and an increase of 0.90% in the last 24 hours. The recent price direction of Bitcoin is an increase because BTC is up by 8.12% against BNB in the last 30 days.This integration provides users with incentives to hold and use BNB, such as discounted trading fees and access to exclusive features.
Smart Chain Evolution: Continuously upgrading and improving the BNB Chain with new features and functionalities, such as increased scalability and security, attracts more users and developers, driving demand for BNB.

These strategic initiatives by Binance demonstrate a long-term commitment to supporting BNB and fostering its growth within the cryptocurrency ecosystem.

Example: Binance offering discounted trading fees to users who hold BNB directly incentivizes users to buy and hold the token, creating constant buying pressure.

BNB vs. The project team managed to raise $18.3 million in Bitcoin, and Ethereum s price in the Initial Coin Offering (ICO) was $0.311, with over 60 million Ether sold. Taking Ethereum s price now, this puts the return on investment (ROI) at an annualized rate of over 270%, essentially almost quadrupling your investment every year since the summerEthereum: A Market Cap Comparison

While BNB has made significant strides in closing the gap with Ethereum in terms of market capitalization, it's essential to understand the context and the factors that still differentiate the two cryptocurrencies. 3 reasons why Ethereum s market cap dominance is on the rise The above chart depicts how Ethereum s TVL market share declining from 70.5% in June 2025 to 49.5% in May 2025 as Terra andAs mentioned earlier, BNB reached 37% of Ethereum's market cap, signifying its impressive growth. Binance cryptocurrency market - The easiest way to know the last prices, coin market cap, token price charts, and 24h change of bitcoin and other altcoins.However, Ethereum still holds a substantial lead.

Key Differences Between BNB and Ethereum

Here's a breakdown of some key differences between BNB and Ethereum:

Decentralization: Ethereum is generally considered to be more decentralized than BNB Chain.While BNB Chain has been taking steps to increase decentralization, it is still more closely tied to Binance.
Ecosystem Maturity: Ethereum has a more mature and established ecosystem with a wider range of dApps, DeFi protocols, and developer tools.
Use Cases: Ethereum's use cases extend beyond DeFi and include enterprise solutions, identity management, and supply chain tracking.
Consensus Mechanism: Ethereum has transitioned to Proof-of-Stake (PoS), which is more energy-efficient than the Proof-of-Authority (PoA) used by BNB Chain, although BNB Chain is evolving its consensus model.

Despite these differences, BNB has carved out a significant niche in the market by offering a faster, cheaper, and more user-friendly platform for DeFi and dApps.The market share comparison demonstrates the success of this strategy.

The Impact of Market Sentiment and External Factors

Beyond the specific factors driving BNB's growth, broader market sentiment and external factors can also play a significant role in its price performance. Ethereum and BNB have gained attention due to recent price surges. The SEC's new ETF application process boosts Ethereum's market sentiment. Continue Reading:Ethereum and Binance Coin Surge: What Drives Their Recent Price Increases? The post Ethereum and Binance Coin Surge: WhatEvents like regulatory announcements, macroeconomic trends, and overall cryptocurrency market cycles can all influence the demand for BNB and its market capitalization.

Understanding Market Dynamics

Here's how market sentiment and external factors can impact BNB:

Bull Markets: During bull markets, when overall cryptocurrency prices are rising, BNB tends to outperform many other cryptocurrencies due to its strong fundamentals and growing ecosystem.Historical data shows BNB coin price grew most during bull runs.
Bear Markets: During bear markets, when prices are declining, BNB can experience pullbacks like any other cryptocurrency.However, its strong ecosystem and Binance's support can help it weather the storm better than some of its competitors.
Regulatory News: Positive regulatory news, such as the approval of cryptocurrency ETFs, can boost overall market sentiment and positively impact BNB. Binance Coin (BNB), la criptomoneda nativa de Binance Smart Chain y el principal exchange de activos digitales Binance, est comenzando a acercarse a Ethereum (ETH) en capitalizaci n de mercado. Al 12 de abril, BNB est valorado en $87 mil millones de d lares al precio de poco menos de $600 .Conversely, negative regulatory news can trigger price declines.
Macroeconomic Trends: Factors like inflation, interest rates, and global economic growth can also influence the demand for cryptocurrencies like BNB.

Staying informed about these broader market dynamics is crucial for making informed investment decisions and managing risk.

Frequently Asked Questions (FAQs) About BNB

What is Binance Coin (BNB) used for?

BNB has multiple uses within the Binance ecosystem:

Transaction Fees: Used to pay transaction fees on the BNB Chain.
Trading Fee Discounts: Used to receive discounts on trading fees on the Binance exchange.
Staking: Used for staking to earn rewards and participate in network governance.
Launchpad Participation: Used to participate in token sales on Binance Launchpad.
Payments: Accepted as payment by various merchants and services.

Is BNB a good investment?

Whether BNB is a good investment depends on individual circumstances and risk tolerance.BNB has shown strong growth potential, but like all cryptocurrencies, it's subject to volatility. BNB, the native token of Binance s BNB Chain, has bounced 66% from its $183 low in mid-June.The move consolidates its position as the third-ranked cryptocurrency (when stablecoin market capsBefore investing, research the cryptocurrency, understand the risks, and diversify your portfolio.

What is the future of BNB?

The future of BNB is closely tied to the growth and success of the Binance ecosystem and the BNB Chain. The global crypto market cap is $3.25T, a 2.59 % increase over the last day. The total crypto market volume over the last 24 hours is $114.22B, which makes a 15.02 % decrease. The total volume in DeFi is currently $35B, 30.64% of the total crypto market 24-hour volume.With Binance's continued innovation and strategic initiatives, BNB has the potential to continue its upward trajectory.However, the cryptocurrency market is highly competitive, and there are no guarantees of future success.

How can I buy BNB?

You can buy BNB on most major cryptocurrency exchanges, including Binance. 3 reasons why Binance s BNB could rally to a new all-time high This rally brought BNB within 7% reach of its all-time high of $690 reached on . handling 7.07 millionSimply create an account, deposit funds, and purchase BNB using a variety of payment methods.

Conclusion: Key Takeaways and Future Outlook for BNB

In conclusion, Binance Coin's (BNB) impressive surge to reach 37% of Ethereum's market capitalization can be attributed to a combination of factors, including the substantial uptick in transaction volume on the BNB Chain, the expanding BNB Chain ecosystem with its diverse range of dApps and DeFi protocols, and the strategic moves and innovations implemented by Binance.These factors have collectively driven demand for BNB, propelling its price appreciation and solidifying its position as a leading cryptocurrency.

The comparison between BNB and Ethereum highlights the different approaches and focuses of the two cryptocurrencies. BNB wurde 2025 durch ein Initial Coin Offering gelauncht, 11 Tage bevor die Binance-Kryptow hrungsb rse live geschaltet wurde. Urspr nglich sollte BNB als ERC-20-Token mit einem Gesamtvorrat von 200 Millionen Coins und 100 Millionen BNBs, die im ICO angeboten wurden, auf dem Ethereum-Netzwerk laufen.While Ethereum remains the dominant platform for decentralized applications, BNB has carved out a significant niche by offering a faster, cheaper, and more user-friendly alternative, attracting a growing community of developers and users.

Looking ahead, the future of BNB appears promising, with Binance continuing to invest in the development of the BNB Chain and expanding its ecosystem.However, the cryptocurrency market is highly dynamic, and BNB's success will depend on its ability to adapt to changing market conditions, overcome regulatory challenges, and maintain its competitive edge.

Key Takeaways:

BNB's surge is driven by increased transaction volume on BNB Chain, a growing ecosystem, and strategic moves by Binance.
BNB offers faster and cheaper transactions compared to Ethereum, making it attractive for DeFi and dApps.
Binance's coin burns and ecosystem development funds contribute to BNB's scarcity and value.
Market sentiment and external factors can also influence BNB's price performance.

Ultimately, whether BNB continues its upward trajectory will depend on a variety of factors, but its current momentum and strong ecosystem suggest that it has the potential to remain a significant player in the cryptocurrency market for years to come. On Monday, BNB's value is $87 billion, at less than $600. The value of Ether is approximately $246 billion, 2.8 times that of Binance Coin.As always, investors should conduct thorough research and exercise caution before making any investment decisions.