Top Key Factors Behind TRX and BNB’s Record-High ATH

Key Points:

• TRX surges 100% to ATH amid political turmoil and ecosystem growth.
• BNB also reached a new ATH 800$, driven by the launch of PancakeSwap Springboard and Changpeng Zhao (CZ)’s market influence.

TRX and BNB have both hit new all-time highs, propelled by a combination of factors including memecoin platforms, increased network activity, and renewed market confidence.

The crypto market was rattled on December 3 as South Korea declared martial law, sending crypto-won trading pairs plummeting due to exchange overloads. However, the reversal of martial law sparked a recovery rally, propelling several altcoins, including TRX and BNB, to record highs.

TRX Hits ATH Amid Political Uncertainty and Ecosystem Expansion

TRX, the native token of the TRON blockchain, soared by over 100% on December 4 to reach a new all-time high (ATH) of $0.45 according to CoinMarketCap.

The TRON ecosystem also witnessed significant gains, with HTX’s native token climbing nearly 50% and other TRON-based tokens like SUN, JST, WIN, and BTT rallying over 50%.

The key factors behind TRX’s surge include:

• Political Turmoil in South Korea: According to analyst Rachael Lucas from BTC Markets, TRX is widely used for transferring tokens between exchanges, especially in South Korea. When several exchanges experienced overloads on December 3, investors turned to the TRON network to transfer funds, driving up the price of TRX.
• The emergence of the memecoin launchpad SunPump, backed by TRON founder Justin Sun: Since its launch, SunPump has attracted capital to the TRON ecosystem, with revenue surpassing Ethereum and far exceeding its “rival” pump.fun on the Solana ecosystem, making Tron one of the blockchains with the most impressive accumulated revenue at that time.

However, others argue that the TRX price increase is simply a continuation of the growth trend of “old” altcoins like XRP, XLM, EOS, IOTA, and HBAR. This observation also aligns with the latest price movements of another veteran altcoin, BNB.

Read more: World Liberty Financial Receives Investment From Justin Sun

BNB Hits New ATH Driven by PancakeSwap Springboard and Renewed Confidence

BNB, the native token of BNB Chain, skyrocketed by over 25% on December 4 to hit its highest-ever price of $800, marking a milestone in its 8-year history.

The main driver behind BNB’s ATH is the emergence of the “PancakeSwap Springboard,” a memecoin incubator platform similar to Solana’s pump.fun. Essentially, this is seen as the BNB Chain equivalent of pump.fun, serving as an all-in-one platform for users to create, build, and trade memecoins.

Additionally, the release from prison and return to vocal activity on X of former Binance CEO Changpeng Zhao (CZ), also considered the “father of BNB,” has contributed to renewed confidence in the BNB Chain ecosystem. This has further encouraged investors to buy more BNB, contributing to its ATH.

Read more: CZ Hints at “Altcoin Season” as ASI Exceeds 75

Memecoin Platforms: A Driving Force in the Crypto Ecosystem

The pioneering role of Solana’s memecoin launchpad, pump.fun, needs no further explanation.

Emerging in just a few months of 2024, pump.fun has now become a dominant name in the meme space, an indispensable factor contributing to the vibrant memecoin market share on the Solana blockchain.

The benefits that pump.fun brings to Solana are envied by other networks. Therefore, it is understandable that every blockchain is seeking to build a similar platform to attract and develop a meme community for its ecosystem.

However, the key issue is retaining users and maintaining enthusiasm for the meme sector within the ecosystem to ensure sustainable cash flow. Currently, only pump.fun and memes on Solana have achieved this, while other ecosystems are considered to be short-lived.

Therefore, will “BNB Chain’s Springboard” and “TRON’s SunPump” follow in the footsteps of their predecessors? Or can they create a new breakthrough? Only time will tell.