In the early days of 2025, the cryptocurrency market experienced a period of downturn. While most tokens were still recovering from significant price drops, BNB demonstrated remarkable resilience, surging by 41% within just 10 days. This upward movement also helped lift the entire CeFi sector. With recent buzz around the BNB Chain ecosystem, many are asking: Is this price surge merely a short-lived event-driven spike, or is it a fundamental reassessment of BNB’s long-term value?
A deeper analysis of historical data and returns reveals a surprising fact: Since the beginning of 2024, the total returns from holding BNB—including both price appreciation and earnings from token launch events—have outperformed Bitcoin’s returns by more than 50%.
This article revisits BNB from the perspective of asset value logic, uncovering the underlying drivers of its sustained growth.
The Steady Outperformer in Crypto
Throughout 2024, Bitcoin captured global investor attention with an impressive 128% gain. In an era where compelling narratives are scarce, Bitcoin has emerged as perhaps the only consensus asset in the crypto industry.
But behind Bitcoin’s glittering performance lies a less-told story:
BNB, which consistently ranks among the top cryptocurrencies by market capitalization, has not only delivered compound returns exceeding those of Bitcoin but has also shown stronger resistance to downturns during market cycles. If there is an unsung hero in the crypto world that has quietly surpassed Bitcoin in certain metrics, BNB is undoubtedly a strong contender.
1. Neck-and-Neck with Bitcoin, Often in the Lead
Based on historical data from CoinMarketCap, since the launch of the Bitcoin ETF on January 11, 2024, BNB’s price increase has outperformed BTC’s for more than 60% of the observed period. At its peak during this cycle, BNB achieved a maximum gain of 175.73%, nearly matching Bitcoin’s performance.
2. Significantly Outperforming Ethereum and Other Altcoins
Since the approval of Bitcoin spot ETFs, the market has exhibited a clear divergence:
Traditional institutional capital flowing into Bitcoin ETFs pushed BTC’s dominance to over 60%, creating a “siphoning effect” that left most altcoins in decline. Amid this trend, BNB stood out with a peak gain of 175.73%, far exceeding Ethereum’s performance over the same period.
3. Greater Resilience in Bear Markets
A retrospective analysis of the 2021–2022 market cycle reveals BNB’s notable resilience during the subsequent bear phase:
- Maximum Drawdown: BNB (-73.29%) < Bitcoin (-77.32%) < Ethereum (-81.68%). During the bear market, BNB declined less than both.
- Recovery Efficiency: BNB took only 237 days to reclaim its previous all-time high, just 45.8% of the time Bitcoin required (517 days), demonstrating strong rebound momentum.
4. Holding Strong During Market Shocks
The current crypto cycle has seen several corrections—including the GBTC sell-off in January, the Fed’s hawkish turn in March, and the Mt.Gox redemption pressure in June. But the most severe test occurred on August 5, 2024, when a brief global dollar liquidity crisis rattled financial markets.
During this event, BNB experienced a maximum drawdown of 18.40%, slightly deeper than Bitcoin’s 15.70% but still better than Ethereum’s performance.
Deflationary Design: A Rare Asset Among Top Cryptos
BNB is the only token among the top 10 cryptocurrencies by market cap that features a deflationary model. In this sense, its scarcity value could be considered even stronger than that of Bitcoin, often dubbed “digital gold.”
According to its economic design, BNB reduces its circulating supply through a quarterly burn mechanism. The most recent burn occurred on January 23, when the BNB Foundation completed its 30th quarterly burn, removing 1,634,200.95 BNB from circulation—worth approximately $1.16 billion at the time.
Since BNB was first issued in 2017, its total supply has decreased from the initial 200 million to 142 million tokens, a reduction of nearly 30%. This translates to an annual deflation rate of about 4.77%.
This decreasing supply supports a rapidly expanding ecosystem of utility and value, making BNB one of the most稀缺性超强资产 (hyper-scarce assets) in the digital economy.
By contrast, other top-tier assets like Bitcoin (capped at 21 million), Ethereum (dynamic issuance), and USDT (pegged expansion) use inflationary or supply-neutral models. Others, such as Solana and XRP, lack hard caps or active burn mechanisms.
If the long-term rise of U.S. stocks is driven by strong corporate earnings and share buybacks, then BNB is one of the closest examples of this traditional value-creation model within the crypto space.
BNB’s burn mechanism mirrors the market management behavior of listed companies—buying back and canceling shares to increase shareholder value. This approach preserves the transparency of cryptocurrency while incorporating principles of value generation from traditional finance.
As a result, BNB combines scarcity with profit-sharing attributes, enabling it to remain a top-tier crypto asset by market cap and earning broad market acceptance for its “stock-like” tokenomics.
Holding and Earning: A User-Centric Model
As Yi He, co-founder of Binance, noted during the exchange’s seventh anniversary event, “Binance always puts users first, designing products that create value for BNB holders.” Binance pioneered the IEO (Initial Exchange Offering), allowing BNB holders early access to new token launches and thereby generating above-average compound returns.
Throughout 2024, Binance further extended this benefits model through initiatives like Launchpool, HODLer rewards, and Megadrop programs—directly channeling platform growth rewards to BNB holders.
Over the course of the year, Binance launched 28 new token events, including 21 Launchpool offerings, 2 Megadrop events, and 5 HODLer airdrops.
Assume a long-term BNB investor employed a token-compounding strategy throughout 2024—selling newly acquired tokens for more BNB and reinvesting. Combined with BNB’s own price appreciation, the total annual return would have reached approximately 284%, significantly higher than Bitcoin’s 183% gain over the same period.
This data clearly validates what Yi He emphasized: Launchpool is designed to “allow the community to share the benefits of the platform’s growth.”
In 2025, the frequency of token launches and airdrops has increased further, with six new events launched by mid-February. This “hold-to-earn” model creates a positive cycle: locking up BNB reduces sell pressure, while airdrops reward holders with new assets, creating a flywheel effect of staking rewards, reduced supply, and price appreciation.
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SEC Resolution and Ecosystem Growth
Recently, the long-running litigation between Binance and the U.S. Securities and Exchange Commission (SEC) showed signs of resolution. Both parties submitted a joint motion to pause proceedings—a positive signal that has allowed Binance to accelerate efforts in both compliance and innovation.
On the technical front, BNB Chain underwent a major upgrade focused on:
- Performance optimization with near-instant finality
- A full suite of AI ecosystem tools including an Agent platform and AI project incubator
- Infrastructure improvements for meme token launches
The effect was immediate. On-chain transaction volume surged, and on February 13, daily transaction fees on BNB Chain reached over $5.8 million—exceeding Solana’s $3.3 million and more than five times Ethereum’s fees.
This was the first time since October 31, 2024, that a blockchain other than Ethereum or Solana led the market in daily fee generation.
At the same time, Binance Square introduced content ecosystem updates described as a “guide against getting rekt.” Influencers can now share and compare investment strategies publicly—with an option to display real-time portfolio holdings.
Users can now transparently view the holdings and trade history of major influencers. These features have been widely praised for satisfying traders’ desire to discover new ideas and showcase success, strengthening user engagement and positioning Binance Square as a leading crypto social platform.
This combination of technical upgrades attracting developers, increased user activity boosting on-chain metrics, and transparent communities strengthening holder confidence is helping BNB shake off the industry’s “only memes remain” narrative and emerge as a “third pillar” in digital assets.
Frequently Asked Questions
What makes BNB different from Bitcoin?
While Bitcoin is primarily a store of value and medium of exchange, BNB functions as both a utility and governance token within a broad ecosystem. It offers built-in deflation through token burns, and holders can earn additional yields through staking, airdrops, and token launch events.
How does BNB maintain its deflationary model?
BNB uses a quarterly burn mechanism where a portion of trading fees and ecosystem revenue is used to buy back and permanently remove BNB from circulation. This reduces total supply over time, creating scarcity and supporting value appreciation.
Can US-based users participate in Binance Launchpool?
Following recent regulatory developments, Binance has made progress toward compliance. However, users should always check their local regulations and Binance’s terms of service to ensure eligibility for Launchpool, Megadrop, and other earning features.
What is driving BNB’s recent price strength?
Factors include positive regulatory developments, strong on-chain activity, high demand for token launches, and the asset’s deflationary tokenomics. Broader market recovery and growing CeFi momentum have also contributed.
Is BNB a good long-term investment?
BNB has demonstrated consistent utility, ecosystem growth, and resilience across market cycles. Its unique combination of deflationary design, user rewards, and ongoing innovation makes it a strong candidate for long-term portfolios, though investors should always perform their own due diligence.
How can I stay updated on new BNB ecosystem developments?
You can follow official Binance and BNB Chain social channels, subscribe to announcement blogs, and join community forums. Regular updates are also shared through the Binance Square interface.
Conclusion
If Bitcoin is digital gold, BNB is writing its own value story:
It is not only the “fuel” of a broad platform ecosystem but also a “value container” that aligns user incentives, technological evolution, and compliance through thoughtful mechanism design.
As markets eventually return to rationality, this experiment in scarcity creation, compound yield generation, and institutional trust-building may well become a milestone in crypto’s journey from niche to mainstream.