Whether the thousand-dollar mark becomes a new benchmark or springboard depends on Binance's continued progress and the evolution of future regulatory outcomes.
Translation: Deep Tide TechFlow
On September 19, KOL @sakura_xbt posted on X, listing various catalysts and key factors to analyze why BNB was able to break through $1000 recently.
After the post was made, CZ also quoted it and published a long article in response and commentary.
We have compiled CZ's response and the original post's analysis as follows.
CZ: Why was $BNB able to break through $1000?
Original post: link
That's a good question, but no one can be completely sure of the reason. Correlation does not equal causation. However, here are some possible reasons for reference.
First, many people have overestimated my contributions; I haven't done much. I don't participate technically like Vitalik; at best, I'm just a mascot, more like an ordinary community member.
The most important point is that the new U.S. government supporting cryptocurrencies may be the biggest driving factor. Their attitude not only affects the U.S. but also influences most countries in the world. Nowadays, most countries have taken a supportive stance towards cryptocurrencies, which is a huge boost for the entire industry. A rising tide lifts all boats, and the whole industry benefits.
Earlier this year, meme coins on the BNB chain made a comeback. I actually made some mistakes that may have hindered the progress of meme coins on the BNB chain. I had never ventured into meme coins before. In the awkward learning process, I may have triggered some internal competition (PVP) within the community, leading to some division.
During this process, I also learned about the negative impacts of MEV attacks (of course, in the public eye). Subsequently, developers, nodes, block builders, wallets, DEXs (decentralized exchanges), and other participants on the BNB chain invested a lot of effort to reduce MEV attacks.
Meanwhile, the block time on the BNB chain was reduced from 3 seconds to 1.5 seconds, and then to 0.75 seconds. The processing capacity also significantly improved.
The gas fees on the BNB chain dropped tenfold overnight, making it one of the lowest-cost blockchains.
Trading volume surged further, and the BNB chain became the blockchain with the highest trading volume.
Binance Alpha removed the requirement for project tokens to be listed on small exchanges first, providing a smoother process for projects transitioning from DeFi (decentralized finance) to CeFi (centralized finance). I had no involvement in the design of Alpha; I only learned about it on X (formerly Twitter).
With the return of meme coins, trading volume on the BNB chain also increased in other areas, such as stablecoins, DEXs, AI, and RWA (real-world assets).
WLF issued the first native stablecoin USD1 on the BNB chain, further enhancing the liquidity of stablecoins on the chain. The previous native stablecoin BUSD (not issued by Binance) was shut down by the New York Department of Financial Services (NYDFS) in 2023, coinciding with the closure of three banks (Silvergate, Signature, Silicon Valley Bank), leaving a gap that was ultimately filled by USD1. USD1 has grown rapidly.
Multiple RWA issuers have deployed on the BNB chain.
Hundreds of AI projects have been deployed on the BNB chain.
The BNB chain burned $1.6 billion worth of BNB last quarter, and billions of dollars in previous quarters as well. Many people ask why $1.6 billion was burned. Why not use that money for marketing? Well…
The U.S. Securities and Exchange Commission (SEC) withdrew its lawsuit against Binance, Binance US, and myself (initiated by Gary Gensler) in May. This eliminated the last point of attack regarding BNB potentially being considered a security. I'm not a lawyer; this is just my layman's understanding, which may be incorrect, but it's definitely good news for BNB.
YZiLabs (and other venture capital firms) have invested/incubated dozens of strong projects on the BNB chain.
Existing projects are performing well. For example, Pancake Swap is handling huge trading volumes; Lista is competing with Venus in the DeFi lending space; Four launched meme coins and RWA; Aster had an excellent TGE (Token Generation Event)…
Several DAT companies purchased BNB, with each buying hundreds of millions of dollars.
More developers are joining the BNB chain, and community support is strong. (Thank you all!)
…and there are many reasons I don't even know about…
Finally, yesterday's 0.25% interest rate cut certainly had some impact, although I don't fully understand it.
Most importantly, I look forward to this vibrant ecosystem bringing more surprises. Keep building!
KOL @sakura_xbt analysis: Why did $BNB reach $1000?
Original post: link
There has been a lot of discussion around @cz_binance and @binance, but almost no one can really articulate what the true catalysts for the growth of $BNB are. Therefore, I decided to research it myself.
I analyzed the key factors that drove $BNB to break this milestone. It turns out that it was not caused by a single event, but rather a combination of long-term fundamentals and short-term triggers.
In the following content, I will continue to explore more driving factors.
Recent Event Timeline
I analyzed the recent upward trend of $BNB approaching $1000 in September 2025, which can be said to be the result of a series of complex yet fascinating factors working together.
First, the news that Binance is negotiating with the U.S. Department of Justice to lift the independent compliance monitor significantly changed the market's perception of regulatory risk. This news alone significantly boosted investor confidence and directly ignited the price increase.
At the same time, the Federal Reserve decided to cut interest rates by 25 basis points, creating favorable macroeconomic conditions for risk assets, attracting both institutional and retail investors to alternative coins like $BNB. The Altseason Index reached a high of 80 in 2025, further confirming that the market was shifting capital towards alternative assets.
I also delved into the fundamentals of $BNB. Its deflationary tokenomics (burning nearly 1.6 million $BNB each quarter) tightens supply. This deflationary pressure, combined with the growth of on-chain activity and the total value locked (TVL) on the BNB chain soaring to nearly $7.8 billion, undoubtedly supported the price increase.
Another interesting point is the speculation about CZ possibly returning to Binance's leadership. Although this news has not been confirmed, it has sparked positive social sentiment and may further enhance the optimism of loyal holders.
Different sources have varying views on the main driving factors, with some attributing it to regulatory improvements, while others cite institutional demand and a positive market environment. But from my perspective, no single factor can fully explain this surge. It is the convergence of regulatory clarity, macroeconomic easing, institutional capital inflow, strong fundamentals, and positive community sentiment that has driven $BNB to new historical highs.
Therefore, when I see $BNB reach the $1000 level, I believe it is a sustainable milestone supported by deep, multifaceted backing rather than a one-time spike. This insight gives me confidence in the future resilience of $BNB.
Macroeconomic Factors
I thoroughly examined the macroeconomic policies of 2025, particularly the shift of the Federal Reserve from monetary tightening to easing policies and its impact on the crypto market and $BNB prices.
The Federal Reserve's decision to cut interest rates by 25 basis points marks the beginning of an easing cycle. According to my analysis, this move improved market liquidity and reduced borrowing costs. History shows that lower capital costs typically increase demand for risk assets, and the crypto market follows this pattern.
Additionally, the inflation level in the U.S. has steadily declined to the target range, allowing regulators to ease policies without triggering economic overheating. Economic indicators such as moderate GDP growth and a stable labor market suggest the possibility of a soft landing. This environment reduces fears of a sharp economic downturn, boosting risk appetite sentiment.
Globally, regulatory clarity, such as the EU's MiCA framework, has increased investor confidence by eliminating legal uncertainties. At the same time, the weakening dollar has played a dual role: on one hand, making dollar-denominated crypto assets (like $BNB) relatively more expensive, and on the other hand, lowering the opportunity cost of holding other assets.
All these factors combined created a favorable backdrop for risk assets in September 2025. Macroeconomic easing became an important fundamental condition for pushing $BNB past the $1000 barrier. Without these supportive conditions, reaching this milestone would have been much more difficult.
From my perspective, this indicates that macroeconomic trends are closely related to the dynamics of cryptocurrencies. Understanding this relationship is crucial for analyzing the price movements of mainstream tokens like $BNB.
Drivers in the Crypto Market
I observed that the remarkable growth of $BNB in 2025 is closely related to the overall crypto market environment.
Bitcoin and Ethereum performed strongly, with $BTC breaking $100,000 and $ETH rising to around $4,600, laying the groundwork for investors seeking higher returns outside of mainstream coins during the "altcoin season."
The Altcoin Season Index reached 80 out of 100 in September, indicating that most top altcoins outperformed Bitcoin, showing a clear trend of capital rotation.
The spot trading volume of altcoins surpassed that of $BTC and $ETH, marking a rare phenomenon of liquidity shifting towards higher-risk assets.
As a top five asset by market capitalization, closely related to the major exchange Binance, $BNB became a major beneficiary of this trend.
Additionally, structural developments also supported $BNB, such as VanEck's submission of the first U.S. spot $BNB ETF application and the growing institutional infrastructure, which further solidified $BNB's legitimacy and encouraged more capital inflow.
On the technical indicators front, the open interest in $BNB futures reached an all-time high, highlighting the market's increased speculative interest, which also supported the price increase.
Overall, the bull market cycle of 2025, altcoin season, ETF optimism, and new liquidity collectively created a strong tailwind that propelled $BNB to new heights.
The rise of $BNB is not an isolated phenomenon but rather a result of favorable dynamics in the crypto market, demonstrating how the interplay of market forces amplifies the gains of leading altcoins.
I believe that understanding these market-wide driving factors is crucial for grasping $BNB's performance during this period.
$BNB Fundamental Analysis
I believe that the price of $BNB breaking through $1000 is based on solid fundamentals rather than mere speculation.
The deflationary tokenomics of BNB played a key role. Over the years, Binance has consistently conducted token burns, reducing the initial supply from 200 million to 100 million. For example, in the 32nd quarterly burn conducted in July 2025, Binance burned approximately 1.6 million BNB, reducing the circulating supply to about 139 million. This steady reduction in supply has created scarcity, naturally driving up the price as demand grows.
The utility of BNB within Binance's vast ecosystem is another pillar.
BNB is a key asset for paying transaction fees on the BNB chain, staking, receiving discounts on trading fees on the Binance exchange, and participating in token sales. The bull market of 2025 significantly boosted network activity, with daily transaction volumes nearing 10 million and active addresses growing by over 30%. The total value locked (TVL) reached approximately $7.8 billion, benefiting from the growth of DeFi and liquid staking protocols, which also reduced the available supply in the market.
Additionally, Binance's corporate development further solidified the foundation of $BNB. Strategic large investors like Nano Labs (@NanoLabsLtd) have been accumulating $BNB reserves on a large scale, indicating enhanced institutional confidence. These long-term holders have stabilized prices by reducing selling pressure.
Overall, the powerful combination of reduced supply and expanded demand, based on real use cases, has supported the steady price increase of $BNB, ultimately reaching the $1000 milestone. This foundation convinces me that the rise of $BNB is sustainable and supported by genuine fundamentals.
This analysis emphasizes the importance of understanding tokenomics and ecosystem utility when evaluating dynamics in the crypto market.
Technical and Ecosystem Factors
The technological and ecosystem developments of the BNB Chain are key driving forces behind its rise as a leading smart contract platform.
The technological upgrades in 2025, such as the Lorenz and Maxwell hard forks, significantly enhanced the chain's scalability and efficiency. Block generation time was reduced to about 0.75 seconds, and transaction fees dropped tenfold to approximately $0.01 per transaction. These improvements brought throughput close to 5,000 transactions per second, comparable to centralized solutions, addressing previous bottleneck issues.
Furthermore, the launch and maturation of opBNB further enhanced the capabilities of the BNB Chain. As an EVM-compatible optimistic rollup Layer 2, opBNB offers ultra-low fees and speeds of up to 10,000 transactions per second. This enables the BNB Chain to support new types of dApps that require high-frequency operations, such as GameFi applications.
Security has also been strengthened. Although it had previously suffered attacks, by 2025, the BNB Chain had stabilized, with no major vulnerabilities and the introduction of AI-based protective measures to prevent MEV (miner extractable value) and bot attacks. This has enhanced trust, especially among institutional investors.
The growth of the ecosystem is also remarkable. Thousands of dApps are now running on the BNB Chain, covering decentralized exchanges (DEXs), NFT markets, and tokenization of real-world assets valued at approximately $24 billion. These integrations have attracted traditional investors and increased market liquidity.
Binance's partnerships have expanded the use of $BNB beyond exchanges, entering the payment and commercial sectors through Binance Pay and NFT platforms. In some regions, crypto cards supporting $BNB for purchases have further broadened its utility.
These technological upgrades and ecosystem expansions collectively give the BNB Chain a competitive edge, making it a fast, low-cost, and mature platform by the end of 2025.
My conclusion is that these factors have transformed $BNB from merely a trading discount token into a reflection of the value of a robust and evolving blockchain ecosystem, providing a solid foundation for its price increase in 2025.
Regulatory and Political Factors
In my view, the key driving factor behind the reduced risk discount for $BNB in 2025 is the gradual normalization of the regulatory environment surrounding Binance.
Binance reached a significant settlement agreement with the U.S. Department of Justice for a $4.3 billion fine and established an independent compliance monitor, which initially brought risks. However, news in September 2025 about the potential early cancellation of regulatory oversight requirements indicated a significant restoration of Binance's compliance capabilities, reducing regulatory uncertainty.
Additionally, Binance's adaptation to regulations outside the U.S. is crucial. The EU's implementation of the MiCA framework, along with Binance obtaining licenses in Dubai, Japan, Latin America, and Southeast Asia, further reduced legal risks globally.
The shift in the U.S. regulatory stance is equally important. The new government has taken a pro-crypto stance and introduced clearer rules, such as classifying liquid staking tokens as non-securities, marking a shift from the previous era of strict enforcement.
Moreover, Binance's improvements in transparency, KYC/AML (Know Your Customer/Anti-Money Laundering) policies, and proof of reserves have enhanced investor confidence and increased its resilience after experiencing market shocks.
These regulatory and political advancements have collectively reduced the risk of Binance facing sudden shutdowns or other disruptions. This change has prompted investors to reassess the value of $BNB more fairly, reflecting the token's true potential rather than overly factoring in heavy regulatory risks.
This case illustrates the importance of regulatory clarity and compliance in the valuation of crypto assets and investor confidence, especially in a volatile market environment.
Social and Media Factors
The social media-driven frenzy played a key role in pushing $BNB past the $1000 milestone.
The collective optimism of the community, combined with leadership signals from Binance founder CZ and key influencers, created a powerful positive narrative. This atmosphere was further amplified by widespread FOMO (fear of missing out) and viral interactions surrounding themes like #BNB1000.
Data from LunarCrush and popular discussions on Reddit show a significant increase in social mentions and search queries related to $BNB (such as "buy $BNB"), as well as celebratory posts indicating that the community generally believes $BNB has entered the "mainstream" alongside $BTC and $ETH.
In particular, CZ's viral tweets expressing gratitude and confidence sparked widespread recognition, bolstering holders' faith while avoiding excessive emotional hype.
Despite some critical voices, they were mostly drowned out in the face of enthusiasm, creating a self-reinforcing cycle: rising prices triggered more positive discussions, which in turn encouraged buying.
This social wave accelerated the impact of fundamental factors, acting as a psychological catalyst that made the price breakthrough faster and more significant.
Social sentiment and media coverage can significantly influence the price dynamics of cryptocurrencies, shaping investor psychology and market direction.
The case of $BNB illustrates how collective belief and community leadership can transform technological and financial advantages into actual market success.
Comparison with Previous Historical Highs of $BNB
The rise of $BNB breaking through $1000 in 2025 is significantly different from its previous peaks.
Unlike earlier cycles primarily driven by retail frenzy, this growth is built on a more mature ecosystem, substantial institutional capital, and partially resolved regulatory risks.
The upward trend in 2025 reflects a structural and sustainable rise rather than mere market speculation.
My conclusion is based on comparisons of past cycles in 2021 and 2024, considering macroeconomic conditions, investor composition, tokenomics, and ecosystem metrics (such as TVL and active addresses).
Institutional characteristics are evident, such as corporate purchases of $BNB and ETF applications, while the automatic burn mechanism supports supply constraints.
The $BNB chain ecosystem now includes advanced DeFi, RWA (real-world asset) tokens, and shows improved technical health, including gradual price growth and moderate RSI (Relative Strength Index) data.
Overall, this indicates that market maturity has reached a higher quality level, and the current price level may be more stable than in previous upward cycles.
$BNB Breakthrough at $1000: A Confluence of Global Trends and Ecosystem Maturity
The breakthrough of $BNB past the $1000 mark stems from a rare confluence of macroeconomic conditions, regulatory easing, and ecosystem maturity.
Key driving factors include reduced regulatory pressure and the Federal Reserve's shift to a rate-cutting policy. These changes eliminated two major obstacles to price increases: legal risks and high borrowing costs.
At the same time, the $BNB ecosystem reached its peak, with record network activity, continued institutional buying, and the token burn mechanism reducing supply. This combination provided a solid foundation for price increases, amplifying community belief and FOMO, making the price rise more justified rather than relying solely on speculation.
The sustainability of the $1000 level depends on the maintenance of these favorable conditions. Institutional holders and real users bring more stable demand than previous speculative waves.
Regulatory clarity helps investors view $BNB as an asset with fundamental value rather than just a speculative token.
Short-term adjustments may occur, especially considering the psychological barrier of whole numbers and the volatility of the crypto market, but these pullbacks are unlikely to threaten the long-term upward trend supported by deflation and ecosystem growth.
The breakthrough of $BNB reflects the multifaceted maturity of global trends and local successes. Whether the $1000 mark becomes a new benchmark or springboard depends on Binance's continued progress and the evolution of future regulatory outcomes.
The milestone of $BNB is the product of multiple driving factors working together, and its future path will be determined by the evolution of these factors.
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