The Binance Coin price is hovering near its highest level since September as investors react to the large fund announced by Binance on Tuesday. The BNB coin is trading at $440, which is a few points below this week’s high of $467. This brings its total market capitalisation to more than $72 billion, making it the third biggest cryptocurrency in the world after Bitcoin and Ethereum.
BNB coin rebounds
BNB is the native currency for the Binance Smart Chain (BSc) ecosystem. This is a network that is relatively similar to Ethereum and Solana in that it allows developers to build decentralized applications including other cryptocurrencies.
Data compiled by DeFi Llama shows that there are about 123 decentralized finance (DeFi) applications built using the network.
These apps have a total value locked (TVL) of more than $18 billion. In contrast, there are about 258 DeFi apps built on Ethereum that have a TVL of more than $140 billion.
In a statement on Thursday, Binance announced that it will spend about $1 billion to support the BSc ecosystem. This is the biggest such fund that has been announced ever. About $300 million of these funds will go towards a builder program. Another $100 million will go towards boosting liquidity in the DeFi platforms.
The funding will also help other subsectors like gaming, virtual reality, and NFTs. In a statement, the executive director of the fund said:
Binance Coin price prediction
The four-hour chart shows that the Binance Coin price moved above the key resistance level at $450 in the overnight session. This was an important resistance since it was the neckline of the inverted head and shoulders pattern. In price action analysis, an inverted H&S pattern is usually a bullish signal. The coin has also moved above the 25 – day and 50-day moving averages, which is a bullish signal.
Therefore, the path of the least resistance for the BNB price is to the upside with the next key resistance level to watch being at $500. This view will be invalidated if the price moves below the key support at $415.