BNB Hits All-time High as Chain Activity Picks Up

BNB token trading activity skyrocketed to $6.4 billion on Dec. 4, its highest level since March.

The BNB Chain’s key metrics are trending higher as traders return to the Binance-backed Layer 1 blockchain.

On Dec. 4, the chain’s daily active user count (DAU) increased by 26% to 1.2 million, compared to 950,000 a month prior. Token trading volume for BNB, the chain’s native token, also skyrocketed, reaching $6.4 billion, a 625% increase in the same period.

Total value locked (TVL) and token prices have risen alongside the increased activity, with the BNB token reaching a new all-time high of $740, 12% above its previous all-time high of $660 from May 2021. As a result, the network’s TVL is up 25% on the month to $6.7 billion, but remains down 74% from its previous high of $26.5 billion in May 2021.

There does not appear to be any clear catalyst for the activity spike outside of increased excitement in the broader crypto markets. Trading volumes on PancakeSwap, the leading decentralized exchange (DEX) on the BNB Chain, are also rising, indicating a potential increase in memecoin trading.

The chain is currently running recurring “MemeOnBNB” challenges on social media. However, the winners of the social media campaign only stand to win $100, so it is presumable that these incentives are not enough to drive the activity.

PancakeSwap’s weekly volume stands at $17.5 billion, the highest since the second week in March. Prior to that, the last time PancakeSwap processed more than $15 billion in a single week was in December 2021.