Rise of BNB Cryptocurrency and Binance's Expansion

BNB, a digital currency associated with the Binance platform and its incarcerated co-founder Changpeng Zhao, saw a remarkable surge to its all-time high during the initial week of Zhao's four-month prison term in the United States.

This surge not only emphasizes Zhao's position as the wealthiest individual in a U.S. federal correctional facility but also signifies the continuous growth trajectory of Binance. Zhao surrendered himself to a California prison to serve a four-month sentence for the oversight in adequately securing the world's largest cryptocurrency exchange from money laundering activities.

As per data from CoinGecko, the price of BNB surged to $717.48 on Thursday, pushing its market capitalization to $109 billion. The token has more than doubled in value since the beginning of the year.

The ascent of BNB reflects the positive fortunes of Binance as a whole. The total assets under Binance's management grew from around $80 billion in early January to the current $125 billion, reaffirming its dominance even after a turbulent period last year that led to the company settling a historic $4.3 billion fine with U.S. authorities.

BNB holders enjoy trading fee discounts on Binance, and the token is also utilized for settling fees on the BNB Smart Chain, a popular blockchain platform among various crypto applications such as gaming and exchanges.

Dessislava Aubert, an analyst at Kaiko, noted that the recent surge in BNB's value was anticipated from trading patterns in the derivatives market towards the end of May. Subsequently, there was a growth in spot demand in June, with purchases consistently outweighing sales from June 2 to June 5.

Aubert pointed out that BNB is actively traded on multiple centralized exchanges, distinguishing it from other exchange-related tokens that are predominantly traded on affiliated platforms. Binance retains an 85% share of the global BNB volume.

*Disclaimer: This article does not offer investment advice.