BNB Soars 33% Within 24 Hours As Crypto Market Begins to Recover: Here Are Likely Reasons
Binance Coin (BNB) has demonstrated a rise of 33% since yesterday, and head of Binance, CZ, noted it in his recent tweet, typing "BNB."
In the meantime, the transaction volume on the BNB Chain has soared to a high last seen nearly half-a-year ago. XRP, ADA and SOL have also recovered to within 15-20%.
BNB recovers by 33% as its transaction volume soars
Since last morning, the native cryptocurrency of Binance exchange, BNB, ranked fourth on CoinMarketCap, has added a whole 33% to its market value. At press time, the coin is trading at $305, climbing from $230 to that level.
Prior to that, on April 20, BNB began to decline from the $428 zone, reaching a low of $227 on May 12.
The Twitter account of the BNB Chain has posted a tweet, saying that the volume of transactions on the network has soared to record numbers last seen in December.
Busy days on #BNBChain 👀The last time we saw this much traffic was back in December 2021. — BNB Chain 🔶 (@BNBCHAIN) May 13, 2022
Besides, it seems that after the LUNA crash, investors rushed to buy the top 10 cryptos, including Bitcoin, ETH, SOL and BNB.
After $LUNA debacle, I believe more people will start look towards acquiring #bitcoin or $ETH before entertaining anything else in the #crypto industry.— David Gokhshtein (@davidgokhshtein) May 13, 2022
CZ offers a plan as to how UST/LUNA could have been saved
Another likely reason for the BNB price uptick is the recent tweet of CZ Binance, in which he wrote that he got in touch with the LUNA/UST team and offered them a detailed plan on how to reverse the crash of both coins.
His suggestion to the team was that the Terra network had to be restored, and the extra LUNA minted should have been burned and the UST peg recovered. He got no response from them, so CZ tweeted that he was very disappointed with the way they "handled (or not handled)" the situation.
As a result, Binance chose to suspend LUNA and UST trading in order to protect their customers.
He mentioned that some traders on Binance again rushed to buy LUNA "on the dip" since deposits were allowed at that moment. They were not aware of the fact they were buying newly minted LUNA, CZ stressed.
He also admitted that Binance usually tries to help crypto projects that got into trouble and does not criticize. This time, however, the circumstances drove CZ to break that rule.
5. I am very disappointed with how this UST/LUNA incident was handled (or not handled) by the Terra team. We requested their team to restore the network, burn the extra minted LUNA, and recover the UST peg. So far, we have not gotten any positive response, or much response at all— CZ 🔶 Binance (@cz_binance) May 13, 2022