Binance founder and former CEO Changpeng “CZ” Zhao has shared the possible factors that triggered the BNB run to a four-digit ATH price.
For context, BNB recently reached a historic milestone, surpassing $1,000 for the first time since its launch. Notably, this achievement marked a massive 999,900% jump from its initial coin offering price of $0.10 eight years ago.
After the rally, several market commentators discussed the possible triggers behind the run, especially as the broader crypto market still struggles with volatility. Amid these discussions, Binance founder and former CEO Changpeng Zhao shared his thoughts.
In his commentary, Zhao first noted that no one can point to a single explanation. He stressed that people often give him more credit than he deserves, as he plays more of a symbolic role in the Binance community rather than a technical one. Still, he presented the major factors that likely fueled the rise.
Pro-Crypto US Government and Meme Coins
To him, the first came from the pro-crypto stance of the current U.S. administration. This policy change changed the tone in the United States and also encouraged other countries to adopt more supportive approaches. Zhao described it as a rising tide that lifted the entire industry, including BNB.
Meanwhile, he also pointed to the comeback of meme coins on BNB Chain earlier this year. At first, he admitted his inexperience slowed their progress and even caused rifts within the community. This was a possible reference to the controversies surrounding the Broccoli meme coin.
However, despite the backlash, CZ confirmed that he became more aware of problems like MEV attacks through the meme coin discussions. Developers, validators, wallets, decentralized exchanges, and other players on the chain then worked hard to reduce these issues.
BNB Chain Upgrades and Binance Alpha
Also, Zhao credited upgrades on BNB Chain as another reason for the surge. For instance, block times dropped from three seconds to 1.5 seconds and later to just 0.75 seconds.
In addition, capacity grew, and fees fell tenfold overnight. Notably, these changes made BNB Chain one of the cheapest blockchains to use, which helped transaction volumes skyrocket, supporting BNB’s price action.
He also highlighted the impact of Binance Alpha, which gave projects a smoother way to move from DeFi to centralized platforms without first listing on smaller exchanges. Zhao stressed that he had no part in designing the feature, but acknowledged its positive effect.
Growth in BNB Chain Ecosystem
Notably, BNB Chain’s growth extended beyond meme coins. Stablecoins, decentralized exchanges, artificial intelligence projects, and real-world assets all gained traction as well.
Zhao spotlighted the launch of WLFI’s USD1. It filled the gap left when regulators shut down BUSD in 2023, and its fast adoption boosted liquidity. Alongside USD1, more RWA issuers and hundreds of AI-based projects joined the chain.
Further, CZ also mentioned the BNB token burn program. According to him, in the last quarter alone, BNB Chain removed $1.6 billion worth of tokens from circulation, following several billion in earlier quarters.
He acknowledged that some people questioned why this money was not spent on marketing, but he maintained that burning directly reduced supply and supported value growth.
Clearer Regulations and Venture Capital Interest
In addition, regulation also played an important role. Zhao described the U.S. SEC’s decision in May to drop its lawsuit against Binance, Binance US, and himself as a huge relief. This move removed the lingering concern that BNB could be labeled a security.
Meanwhile, venture funding bolstered the bullish outlook. Specifically, firms like YZiLabs backed dozens of projects, while established platforms within the ecosystem kept expanding. PancakeSwap continued handling massive volumes, with Lista and Venus also driving competition in decentralized lending.
Other entities entered the scene with new meme coins, RWAs, and DeFi offerings. Zhao added that several firms had bought hundreds of millions of dollars’ worth of BNB, showing strong institutional interest.
He then added that none of this would have been possible without the builders and community members who continue to drive the ecosystem forward. CZ mentioned that the recent quarter-point interest rate cut probably gave markets an extra push, even if he could not fully explain its impact.
Notably, BNB’s price has stayed volatile despite its breakthrough. After peaking at $1,006 on Sept. 18, it fell to $981 before recovering to around $994. Even though BNB dropped slightly below four figures, it still stands out as one of the best-performing assets this year, up 41.71% since January.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
