Binance-backed BNB has outpaced the broader cryptocurrency rally, with a 28% increase in market capitalization over the past seven days, prompting questions from the community.

BNB, the native cryptocurrency of the BNB Chain — the layer-1 blockchain developed by Binance — has climbed to become the third-largest digital asset by market capitalization.

After breaking above $1,100 for the first time on Friday, BNB
BNB$1,282.52
achieved a new major milestone on Tuesday by overtaking Ripple-backed XRP
XRP$2.88
as the third-largest crypto asset by market cap.

At the time of publication, BNB traded at $1,326, up nearly 30% in the past seven days, with a market capitalization of $182 billion, according to CoinGecko data.

This breakthrough coincides with the growing adoption of BNB in various regions, including the launch of a government-backed BNB fund in Kazakhstan. Meanwhile, some market observers have raised concerns about potential price manipulation underlying the sharp rise relative to other cryptocurrencies.

While the broader crypto market has been bullish, BNB’s growth stands out.

Adoption or Manipulation?

BNB’s rise coincides with expanding use in several regions, including the launch of a government-backed BNB fund in Kazakhstan. However, not everyone is convinced that organic growth alone explains the sharp move.

Social media platforms like Reddit and X (formerly Twitter) have been filled with speculation. Some traders compared BNB’s rise to the now-defunct FTX token, hinting at possible price manipulation.

Binance and its founder, Changpeng “CZ” Zhao, haven’t addressed these claims directly. Instead, CZ posted a brief message on X saying, “Keep building on BNB Chain,” while the official BNB Chain account shared a community analysis highlighting the network’s strong metrics — including over 60 million monthly active addresses.

How Much Does CZ Hold?

“While the broader industry feels like it’s still waiting for direction, BNB has quietly been putting up the strongest numbers in the industry,” Saqib wrote, referring to BNB Chain’s 60 million monthly active addresses and new record highs of BNB.

With BNB’s market cap reaching $182 billion, CZ could personally hold as much as $116 billion in the crypto asset, as previous reports suggested that Zhao held 64% of BNB’s circulating supply as of June 2024.

If earlier reports are accurate, CZ may personally hold around 64% of BNB’s circulating supply, which would now be worth approximately $116 billion. That figure, if true, would make him one of the wealthiest individuals in the crypto world.

Question for readers:

Do you think BNB’s surge is fueled by real adoption, or is something else happening behind the scenes?