#Binance
BNB Price Skyrockets to 2 Year High, Here are the Driving Factors
BNB's significant price increase, with a 62 percent increase in a 30-day period to reach a two-year peak of US$489.50 on March 8, has attracted great attention in the crypto community.
This striking rise not only emphasizes the volatile nature of the crypto market, but also strengthens BNB's position as the third largest digital currency by market capitalization, excluding stablecoins.
BNB Price Skyrockets to 2 Year High
Cointelegraph reports that anticipation surrounding BNB's price trajectory, particularly its potential to break the US$500 threshold, has sparked a mix of optimism and skepticism among traders and investors.
The question of the sustainability of this rally is taking center stage, as market dynamics and external factors continue to play an important role.
The background to BNB's rally is complex, especially when considering the challenges faced by Binance and its Founder, Changpeng Zhao.
In November 2023, CZ's guilty plea agreement with a US federal court on charges related to facilitating illegal fund transfers through Binance cast a shadow over BNB's future.
This uncertainty was exacerbated by CZ's decision to step down as CEO. The intrinsic value of BNB, which is closely tied to the Binance exchange ecosystem, has thus been questioned, leading many to speculate on the future performance of the token.
Despite these challenges, a settlement between Binance and the US Commodity Futures Trading Commission (CFTC) in December 2023 played a crucial role in removing some of the uncertainty surrounding BNB's future.
The mandated reforms, aimed at strengthening corporate governance and compliance frameworks, are significant.
However, CZ's ongoing legal situation and the condition that he must remain in the US until his judgment date casts a long shadow, making BNB's future highly dependent on this development.
