The BNB price has held steady in the past few days as investors waited for the upcoming Maxwell upgrade. Binance Coin rose to a high of $675 on Monday, and is hovering at its highest point since February 25. This article explains some of the top reasons why the BNB price is on the cusp of a bullish breakout.
BNB price rises ahead Maxwell upgrade
The BNB price has done well this year as the developers continued building. They initially launched the Pascal upgrade earlier this year, deepening its integration with Ethereum, the biggest chain in crypto.
After that, the developers launched the Lorentz upgrade in April, increasing the block speed. It moved their average block speed from 3 seconds to 1.5 seconds.
The next important upgrade will happen in June when it launches the Maxwell upgrade, which will increase its speed to 0.50 seconds.
BNB aims to become a better option for developers than Solana and Ethereum. Therefore, the BNB price may keep rising as bulls wait for the upcoming Maxwell upgrade.
BNB Smart Chain stablecoin supply is growing
The BNB price may keep rising as the supply of stablecoins in the network continues rising. Data shows that the stablecoin market cap has soared to $10.1 billion, the highest point since November 2022.
Tether’s suppy in the network jumped by 15% in the last 30 days to $6 billion. It is followed by World Liberty’s USD1 stablecoin, which has over $2.1 billion in assets. The other top stablecoins in the BNB Chain are USD Coin (USDC), USDX, and Binance Peg BUSD.
The rising stablecoin market cap is good as it signals that the network is becoming active since these coins are the currencies used in blockchains.
Soaring DEX volume
The BNB price will also likely rise as the DEX volume in the network rises. Data shows that the network has handled over $102 billion in volume this month, its highest level since November 2021. The volume was much higher than the $29.9 billion it processed last month.
PancakeSwap is the biggest player in the BNB Chain as its volume jumped to over $92.33 billion in the last 30 days. It handled over $50.4 billion in the last 30 days and $9.9 billion in the last 24 hours. Its cumulative volume has jumped to over $1.6 trillion.
Uniswap’s network handled almost $5 billion in the last 30 days and $3.95 billion in the last seven days.
Rising DeFi TVL
The other reason why the BNB price could rise is that the ecosystem is doing well. Data shows that the total value locked (TVL) in the network jumped to $9.32 billion, the highest point since May 2022. This growth makes it one of the biggest chains in the crypto industry.
The best-performing dApps in the BSC Chain are PancakeSwap, Venus, Lista DAO, and KernelDAO. Lista DAO’s assets jumped by over 50% in the last 30 days,
BNB Price technical analysis
Finally, the weekly chart shows that the Binance Coin price has remained in a tight range this year. This consolidation is happening by design as it is part of the handle section of the cup and handle pattern.
The depth of the cup is about 75%, meaning that the next BNB price target is about $1,100. This target is calculated by measuring the same distance from the upper side of the cup.
The caveat here is that it may take time for the bullish breakout to happen. For example, the handle section of this pattern has taken months to finish.
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