Binance’s BNB tokens are hitting new highs every day, and are exploring price discovery with a stable outlook for further profits. However, not everyone supports the story.
The so-called “BNB Supercycle” has seen prices and meme-powered hype rise, but more analysts and traders call this the next bubble waiting to collapse.
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BNB Moonshot incites backlash: Traders warn “supercycle hype”
BNB prices have recently hit a new high, trading at $1,287 at the time of writing, up almost 3% over the past 24 hours.
This surge has put the Binance Smart Chain (BSC) ecosystem in an overabundance. Data shows that BSC chain-led decentralized exchanges (DEX) trade volumes exceed $6 billion in 24 hours.
Meanwhile, the BNB Supercycle movement has rapidly gained momentum when Binance founder Changpen “CZ” Chao tweeted, “Does it stand for BSC?” In response, the community replied, “BNB Supercycle.”
The enthusiasm sparked a full-scale rally. Within hours, meme token BSC launched on PancakeSwap, and market capitalization skyrocketed from under $1 million to over $32 million, as top influencers joined in.
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Crypto analyst Stitch analyzed the phenomenon and pointed out the importance of timing. Analysts noted that CZ’s tweets, official support, growing influencers and the community’s aspirations for a comeback story are all converging.
“This was the moment when the BNB community woke up. BNB comes back, CZ comes back, and the BNB supercycle begins,” they write.
However, skilled traders feel alarming signs under that sense of well-being. Vocalist market commentator Marty Party pointed out similarities to the 2022 collapse of FTX/FTT.
“Binance’s personal blockchain asset BNB surpasses BlackRock by market capitalization, is unregulated, and there is no stablecoin backed by US dollars. This is the next FTT, but nothing has been released from regulators,” he warned.
He accused Binance of operating “out of jurisdiction” while “manipulating all other network assets.”
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Pseudonymous analyst Segu in a similar tone, questioning the fundamentals of the colloquial BNB Supercycle.
“What structural advantages have of BSC over Solana right now, and does that lead to accelerated degeneration? Is it just a pure atmosphere?” Segg said.
Speculation over matter: a “super cycle” or just a rotation?
Meanwhile, renowned trader and X’s popular account Anthem agreed, claiming that BSC’s new activities were not due to technology, but due to liquidity rotations.
“BSC has absolutely no technical advantage over Solana. Previously, BSC had very little capital, which is declining. So there is a new inflow of capital from other chains that buy coins, and not thousands of coins can be purchased every day + BNB’s all-time highs and a direct asset effect due to CZ + Binance Cartel bid on Astor,” Anthem explained.
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Elsewhere, trader Thomas Nguyen argues that once the market capitalization of BSC memecoin reaches $1 billion, the movement of the BNB supercycle could become parabolic.
But even when the price chart flashes green, on-chain sentiment tells a different story. The data shows lower trader confidence, slower stablecoin flows, and shorter holding periods.
This suggests that speculation, rather than certainty, may be causing this rise. Perhaps this is the same speculation that already suggests a Binance IPO. Still, some say that it is not necessary to list because BNB already has an open market with CEA Industries, the largest BNB whales.
Analysts warn that the “supercycle” story risks repeating the same pattern of peaks of elation that ends with abrupt adjustments.
With BNB rising in price and the “supercycle” chants growing, investors need to do their own research.
