3 Reasons Why Binance Chain (BNB) Has Surged 66% Since The Crypto Market Crash

The BNB token has a market capitalization of $50 billion and is up 66% since the crypto market collapse, but what's behind the altcoin's tremendous rally?< /p> Altcoin Watch

BNB, the native token of Binance's BNB chain, has rebounded 66% from its mid-June low of $183. The move solidifies its position as the third-largest cryptocurrency (when stablecoin market caps are removed) and reflects a market cap of $50 billion. BNB outperformed the broader altcoin market cap after a devastating 73% correction that began in November 2021.

Token BNB to FTX (blue) vs. Total market capitalization excluding BTC (orange). Source: TradingView

The graph above shows how this smart contract blockchain network suffered during the recent market crash and how similar moves have occurred in the altcoin market. Now that the price of BNB has reached $300, let's take a look at how the asset is positioned compared to July 2021, when it traded at the same price.

Is the market capitalization and valuation of BNB justified?

In July 2021, the market capitalization of altcoins was 21% higher at $740 billion. Bitcoin (BTC) and Ether (ETH) had already established themselves as the market leaders, but the dispute for the third position was far from settled, at least in terms of total value.

Top coins by market cap on July 4th 2021. Source: Coinmarketcap

Although still the third largest cryptocurrency, BNB's market capitalization was $47 billion, while Cardano (ADA ) held a valuation of $46 billion. Currently, no altcoin remotely matches its dominance and the gap has widened by over $30 billion.

Smart contracts form the basis of all decentralized applications (DApps), including decentralized finance, games, marketplace...