Why will BNB reach $1,000? CZ personally summarizes some reasons

Source: CZ; Compiled by: Golden Finance

Why did BNB reach $1,000?

Good question. No one knows for sure. Correlation doesn't prove causation. But here's an incomplete list of possible reasons.

People tend to give me too much credit. I don't really do much. I'm not as involved as Vitalik. I'm more of a mascot than a community member.

US Government Support for Crypto

First and foremost, I think the new pro-crypto US government probably played the biggest role. Their stance has influenced not only the US, but most countries around the world. Now most countries have adopted a pro-crypto stance. This is a major boost for the industry. A rising tide lifts all boats. BNB Chain Performance Improvements: Earlier this year, memecoin made a comeback on the BNB chain. I actually made some mistakes that may have hindered memecoin's progress on the BNB chain. I had never emulated memecoin before, and my clumsy learning process may have sparked some PVP, which led to some divisions in the community. During this process, I learned about the negative impact of the MEV attack (again, publicly). BNB chain developers, nodes, block producers, wallets, DEXs, and other participants subsequently invested significant effort in mitigating MEV attacks. Simultaneously, BNB chain block times decreased from 3 seconds to 1.5 seconds, and then to 0.75 seconds. BNB chain capacity also increased significantly. Gas fees on the BNB chain dropped 10x overnight, making it one of the lowest-fee blockchains. Transaction volume further soared, making the BNB chain the highest-trading chain. Binance Alpha: The Binance Alpha version eliminates the need for projects to list their tokens on smaller exchanges first. This streamlines the process for projects transitioning from DeFi to CeFi. I wasn't involved in the Alpha design at all. I learned about it at X. Stablecoins, Reliable Authenticators (RWAs), and AI Projects: With the return of the meme coin, the BNB chain has also seen increased transaction volume in other areas, such as stablecoins, DEXs, AI, and Reliable Authenticators (RWAs). WLF issued the first native stablecoin, USD1, on the BNB chain, further increasing on-chain stablecoin liquidity. The previous native stablecoin, BUSD (not issued by Binance), was shut down by the New York Department of Financial Services (NYDFS) in 2023, just before three banks (Silvergate, Signature, and Silicon Valley Bank) were shut down. The gap left was eventually filled by USD1, which grew rapidly. Multiple RWA issuers are deployed on the BNB chain. Hundreds of AI projects are deployed on the BNB chain. Massive BNB Burns The BNB chain destroyed $1.6 billion worth of BNB last quarter, and billions more the quarter before that. People often ask, why burn $1.6 billion? Why not spend it on marketing? Well… The SEC dropped its lawsuit (filed by Gary Gensler) against Binance, Binance.US, and me in May, removing the final veto of the argument that BNB might be a security. I'm not a lawyer, and this is my layman's understanding. It might not be correct. But it's definitely good news for BNB.

New Projects on the BNB Chain

YZiLabs (and other VCs) have invested in/incubated dozens of strong projects on the BNB chain.

Existing projects on the chain are performing well. PancakeSwap is handling massive transaction volumes. Lista is competing with Venus in the DeFi lending space. Four is issuing memecoin and RWA. Aster's token launch (TGE) was excellent...

BNB DAT

Multiple DAT companies are buying BNB, each worth hundreds of millions of dollars. More builders are on the BNB chain. Strong community support. (Thank you!)

...and many other reasons I don't even know about...

Federal Reserve Rate Cut

Finally, yesterday's 0.25% Fed rate cut certainly played a role, although I don't fully understand it.

Most importantly, I look forward to more developments from this vibrant ecosystem. Keep going!