What’s Driving the BNB Rally? Analyst Explained

Binance's native cryptocurrency, BNB, is nearing a record high, approaching its peak value of $705. Recently, BNB experienced a significant increase of over 10% from a low of $597 on Sunday. Currently, BNB is trading at $669, marking a 7.64% rise in the last 24 hours.

This surge is largely attributed to strong activity on Binance's Launchpad and Launchpool platforms, where users must buy and stake BNB to earn shares of new tokens. The latest token launch was Notcoin (NOT), a gaming token based on Telegram.

Despite the trading volume nearing $3 billion in the last 24 hours,

option investors are exercising caution. They are buying options with strike prices between $550 and $650. According to Bernd Sischka, Chief Commercial Officer at PowerTrade, 11,250 BNB options were traded with call strike prices from $600-$700 and put strike prices from $650-$550.

Traders are bracing for significant volatility as BNB prices approach 2024 highs.

There is currently $7.5 million in open interest for BNB options. Most of the put options could become worthless if BNB's price continues to rise or stays at its current level.$BNB $NOT