Source: AdobeStock / akif
BNB surges 11.16% to move past Solana (SOL) in market capitalization, sparking several sentiments from traders and igniting a new altcoin push.
The last days of the year have seen multiple assets making uphill movements as bulls set sights on good positions before the new year with more anticipation for a spot Bitcoin (BTC) ETF approval by the United States Securities and Exchange Commission (SEC).
The Binance exchange token made a huge leap in the past 24 hours to flip Solana to take back its fourth spot per market capitalization. At press time, the asset trades at $327.70 and has recorded a 21.3% increase in seven days and a 43% rise in 30 days.
A notable reason for the rise of BNB is the community optimism around the Sleepless AI on Binance Launchpad. The project seeks to integrate Web3 and Artificial Intelligence (AI) gaming, becoming the 42nd project in Binance Launchpool.
New #Binance Launchpool: $AI@SleeplessAI_Lab is a Web3+AI companion gaming platform. Its goal is to bring unprecedented innovation to the gaming industry by utilizing AI and blockchain technology.
Learn more https://t.co/qzrGvuKGGV
— Binance (@binance) December 27, 2023
Despite the rise, on-chain metrics show that some traders are betting against the upward movement which can be seen from the Relative Strength Index (RSI). The RSI currently stands at 78.4 and needs to stay below 65 because when the RSI pumps, there is a possibility for a price correction.
Market forces stunt BNB’s yearly growth
Although BNB posted wins with a year-to-date (YTD) increase of 34.30%, the asset growth has been slow compared to other coins like BTC and Ethereum (ETH).
BTC and ETH lost over 55% in 2022 but have rebounded in the last 12 months with the market leader posting gains of 156% to trade at $43,135 while ETH gained 102% including gains in institutional products after multiple months underwater.
Analysts point to the recent struggles of Binance as the reason for the slow growth of the asset. This year Binance has faced lawsuits from the SEC and the Commodity Futures Trading Commission (CFTC) including a recent settlement that saw its former CEO Changpeng Zhao step down.
While administration is only one reason, spot trading volumes also dropped on the exchange for consecutive months losing market share to competitors.
Solana drops, others peak
Solana has been the center of the buzz in the last 14 days posting huge growth displacing BNB as the fourth largest crypto temporarily. The asset’s rise led to sales for its flagship smartphone as users sought gains from its widely anticipated airdrop.
However, SOL has plunged 7.9% in the past 24 hours to trade at $105 with a 17% drop in daily trading volumes at $4.3 billion. The plight of the asset now sees BNB ahead with a $4.6 billion market cap difference.
Other altcoins like ETH and Cardano (ADA) have recorded over 5% daily gains while Ripple (XRP) and Chainlink have seen 2.92% and 10.74% respectively.
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