After destroying $500 billion in value in the crypto market, BNB emerged as an outperformer with a rapid recovery to reach a new all-time high above $1,350. This period seems to be over, since it has plunged by almost 6.5% in the last 24 hours.
In comparison, bitcoin is down 1.9% over the same period, while the broader crypto market, as measured by the CoinDesk 20 Index (CD20), is down 2.9%. BNB’s underperformance could be linked to profit-taking and portfolio rebalancing.
BNB fell from $1,286 to $1,165 as the crypto market sees a fragile recovery after the sharp sell-off. According to CoinGlass data, approximately $16 million worth of BNB positions were liquidated in the past 24 hours during the sell-off.
To mitigate the impact on retail users, BNB Chain announced a $45 million fund aimed at stabilizing the market and supporting over 160,000 affected traders.
Market maker Wintermute noted that the sell-off was closely timed and tested the limits of perpetual contract trading platforms. He added that “the violent price movement quickly led to the disappearance of liquidity in the market as a whole.”
Yet the accumulation of BNB by businesses has continued. Hong Kong-listed investment bank China Renaissance aims to raise $600 million for a publicly traded crypto treasury focused solely on BNB.
The vehicle, which will be based in the United States, would represent one of the largest public bets on BNB to date. It would join other listed entities like CEA Industries, which recently increased its BNB holdings to 480,000 tokens.
The deal is reportedly backed by YZi Labs, the $10 billion family office of Binance co-founder Changpeng Zhao, which recently hosted an invitation-only investor dinner in Singapore to promote BNB-centric investing.
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