BNB Chain leads DeFi growth despite “Red October” market correction
BNB elevated its month-to-month market cap by 6.2% to face out as the one large-cap to complete within the inexperienced through the first pink October since 2018. The entire crypto market cap fell 6.1% throughout a unstable October, which additionally noticed BTC’s market cap drop 4%, ADA’s worth lower by 24%, and SOL shed 12.7%.
Binance Analysis has launched a report discussing the month-to-month developments within the crypto market in October. The report acknowledged that October was a unstable month throughout crypto markets, with main property experiencing sharp corrections or selective resilience.
It additionally implied that the downturn in “Pink October” was partly because of the October 10 occasion, which worn out over $19 billion in positions. Broader macroeconomic elements additionally weighed on sentiment.
Nonetheless, Binance Analysis noticed that regardless of the correction, the Binance token’s October rally was fueled by robust ecosystem development. The launch of Polymarket and Myriad prediction markets, together with the rollout of Ondo Finance’s tokenized shares and ETFs on BNB Chain, supported this development.
BNB Chain leads DeFi development
Supply: Binance Analysis DeFi TVL share of prime blockchains.
Regardless of the October downturn, BNB Chain led the expansion of DeFi ecosystems, adopted by Solana and Arbitrum. Nonetheless, Ethereum and Tron posted slight drops. DeFi TVL (complete worth locked) additionally plummeted 4.85% MoM, as DeFi liquidity pulled out on market corrections.
In the meantime, stablecoin exercise surged as traders sought security. The entire stablecoin market cap rose 3.54% as USDT continued to extend its lead over USDC.
In October, JPYC (pegged on Japanese Yen) and EUROD (backed by the Euro) have been launched to the BNB Chain. The 2 expanded the vary of stablecoins tied to main currencies past the U.S. greenback, enhancing the effectivity of cross-border cost. Binance Analysis noticed that BNB Chain transactions spiked 135%.
In the meantime, the spike was pushed primarily by a memecoin frenzy that boosted token costs and attracted new merchants. The memecoin pleasure peaked in early October with over 100,000 new merchants leaping into memecoins in a single day (October 7).
Almost 70% of those newcomers ended up in revenue, in line with the report. Roughly 40 people earned over $1 million, and one other 6,000 obtained $10,000 or extra in compensation. Nonetheless, many of those memecoins crashed by October 8 and 9.
Binance token breaks $1,300
The report acknowledged that exercise on the BNB Chain not solely boosted transactions but in addition propelled the Binance token to surpass $1,300 on October 13. Binance Analysis noticed that even with the pullback, BNB remained up 6.6% for the month, offering the chain’s resilience.
The rally additionally seems to have been fueled by rumors that Binance co-founder Changpeng Zhao (CZ) was returning to the corporate. CZ beforehand defined that political, technical, and regulatory elements have fueled BNB’s rally.
In keeping with CZ, political shifts have beforehand supported the rise in BNB costs. He emphasised that the brand new U.S. administration has created a good setting for crypto. The Binance token value additionally jumped attributable to rising hopes that President Donald Trump would grant CZ a full pardon.
In the meantime, MEXC introduced a report detailing the anticipated costs of BNB below completely different situations. Within the bull state of affairs, BNB is predicted to check the prior resistance of $1,300-$1,400 within the brief time period (Oct-Nov).
For the medium time period (This autumn 2025), BNB costs are anticipated to vary between $1,500 and $1,800 if the macro setting stays supportive. In the long run (by 2026), the worth is predicted to succeed in $2,292.
Within the base case state of affairs, assuming regular volatility and corrections, BNB costs within the brief time period are anticipated to stay consolidated between $1,000 and $1,250. For the medium time period, a gradual climb towards $1,500 is predicted by the top of 2025. Nonetheless, BNB is predicted to keep up a conservative common value of $1,090 in the long run.
