BNB has reached a new all-time high, with CEO David Namdar believing its true potential is yet to be fully grasped. Despite strong fundamentals and increasing adoption, this blue-chip remains oddly underrated. An insightful analysis could reshape investors' perception of Binance's native token.
The Binance Coin recently recorded a new all-time high, confirming its position among the major assets in the crypto market. However, David Namdar, CEO of CEA Industries, believes the token remains largely undervalued compared to its actual potential. This statement comes at a time when the BNB Smart Chain ecosystem is showing sustained growth in usage, both in terms of transactions and decentralized applications.
Binance’s native token serves as the cornerstone of a complete ecosystem that encompasses trading with fee discounts, staking, participation in project launches via Launchpads, and access to a rapidly expanding DeFi infrastructure. This multidimensional utility distinguishes BNB from other platform tokens, giving it a value proposition rarely matched in the industry.
Namdar’s analysis highlights a paradox in the crypto market: while some projects massively capture media attention with fragile fundamentals, BNB continues on a steady upward trajectory without benefiting from the same speculative enthusiasm. This situation potentially creates an opportunity for investors seeking assets with strong utility and relatively low volatility.
Despite the biggest crash for altcoins, BNB is displaying a new peak today, at $1,352 at the time of writing. Get $10 free when you buy your BNB on Bitget in just a few clicks:
Tip: Find our complete guide to buying BNB here.
The term “blue-chip” traditionally refers to the most established and reliable assets in a market. In the crypto context, this category typically includes Bitcoin and Ethereum, but Namdar argues that BNB fully deserves this classification. On-chain metrics for the BNB Smart Chain reveal sustained activity with daily transaction volumes that rival those of the major blockchains.
The Binance ecosystem generates substantial revenue through trading fees, part of which fuels the quarterly BNB burn mechanism. This deflationary process progressively reduces the total supply, creating structural upward pressure on the price. To date, Binance has burned millions of tokens, steadily approaching the goal of reducing the total supply from 200 million to 100 million BNB.
The token’s deep liquidity on major exchange platforms, combined with its use as collateral in numerous DeFi protocols, strengthens its position as a blue-chip asset. Institutional investors are beginning to recognize these attributes, even though BNB remains less present in professional portfolios than its direct competitors.
From a technical standpoint, the breakout above the previous ATH is typically accompanied by bullish momentum that can propel the price toward new highs. Support levels have consolidated during previous correction phases, establishing a solid foundation for the continuation of the movement. The risk-reward ratio becomes particularly attractive when an asset breaks through its major resistance with significant volume.
Future developments in the Binance ecosystem could serve as additional catalysts. The continuous expansion of BNB Chain, the integration of new layer 2 features, and increasing adoption by developers create an environment conducive to sustained appreciation. The market is also closely watching announcements regarding the regulation of exchange platforms, which could paradoxically benefit established players like Binance.
On the same topic:
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
