With bull market momentum shifting from altcoin to altcoin, BNB appears to be making the most of an optimistic scenario at press time. In fact, the BNB price is currently at $ 644, extremely close to the previous all-time high (ATH) of $ 692 in May 2021.

However, there are some fundamental differences between the first quarter of 2021 and the fourth quarter of 2021. While both periods represent bullish behavior, it is important to understand the new developments right now.

With a market capitalization of 108 billion US dollars, the BNB is slowly closing the gap to SOL, which is directly behind it.

BNB increases with the support of BSC – Sustainable?

Number of active wallets on BSC | The source: Dapp radar

Originally, BSC was launched to compete with Ethereum in the DeFi arena, which allowed BNB to scale more than 10x in early 2021. Currently the functionality of the platform is growing and can help BNB retest high levels.

According to data, BSC quickly turned to GameFi, and popular games like Mobox, CryptoBlades are actively working on BSC. Ethereum’s Axie captured most of the hype from the blockchain gaming world. But at the moment Mobox and CryptoBlades bring over 200,000 unique active wallets.

The graph above illustrates the growing activity of BSC in the third and early fourth quarters of 2021.

Source: Coinecko

The activity is not limited to tokens, however. At the time of writing, PancakeSwap, which is based on BSC, is the most widely used decentralized application in the industry. In October alone, PancakeSwap attracted over 37,000 traders as a marketplace and collected a trading volume of over 39 million US dollars.

These numbers represent a significant increase of 140.72% and 676.67%, respectively. In addition, PancakeSwap currently has the highest trading volume of all relevant decentralized exchanges with a market share of over 25%.

Unexpected disadvantage?

While BSC has extremely impressive statistics for supported protocols, Solana is currently doing better in one respect and is catching up at a dizzying pace.

Although SOL’s market cap is only half the size of BNB’s, its total value is $ 25 billion compared to Binance’s $ 21 billion.

Source: trade view

Structurally, the BNB is just a bit away from testing the $ 692 resistance. The only difference at the moment is the lack of development hype.

To be fair, if the BNB closes its weekly candle above $ 692, momentum could push the price forward. Tech-wise, trading volume is much thinner now than it was at the beginning of the year.

All in all, the BNB could rise very quickly after hitting $ 692, but it’s still not as strong as it was in the first quarter of 2021. Investors should keep that in mind before boarding this Binance giant’s ship.

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