Binance Research: BNB Soars to ATH Driven by Spot Demand and Institutional Interest

On July 23, the research division of Binance, a leading cryptocurrency exchange, released a report analyzing the structural factors influencing the price increase of BNB. Experts attributed the recent rally to heightened demand on the spot market and increasing interest from institutional investors.

The report indicated that the five-week surge in price is largely driven by spot market demand:

“From a capital flow perspective, this increase is grounded in healthy fundamentals. […] The principal driving force is the influx of new capital into the spot market to establish long-term positions. This reflects genuine investor confidence rather than speculative leveraging.”

Analysts also highlighted that BNB has outperformed traditional market indices and other major cryptocurrencies in terms of risk-return ratio.

“The five-year Sharpe ratio has reached 2.5, indicating that for every dollar of risk taken, there is a return of $2.50. This metric underscores BNB’s potential to deliver high returns while maintaining a relatively stable risk profile,” the analysts noted.

According to their estimates, the potential demand for BNB from large investors exceeds $1.2 billion.

“Although only a few public plans have been disclosed so far, overall potential demand has already surpassed $1.2 billion—an indicator of considerable market confidence.”

“For comparison, public companies hold Ethereum (ETH) worth $3.7 billion, which represents only 0.83% of its total market capitalization. The $1.2 billion reserve in BNB implies that public companies aim to acquire 1% of its supply, exceeding a similar metric for the second most capitalized cryptocurrency,” the report stated.

Various companies, including Nano Labs, Windtree Therapeutics, 10X Capital, and Build & Build Corp, have announced plans to create reserves in BNB.

The value of BNB is further supported by its usage in both centralized and decentralized services: discounts on trading fees at Binance, participation in token sales, as well as gas fees in the BNB Chain, opBNB, and Greenfield networks.

A deflationary model featuring a burn mechanism that removes nearly a third (31%) of the total token supply enhances the asset’s scarcity.

Additionally, it is worth noting that last week, the BNB Chain team unveiled a development roadmap for the network leading up to 2026. The developers plan to “create a next-generation blockchain” capable of competing with centralized exchanges (CEX) and traditional finance (TradFi) platforms like Nasdaq.