Analyzing the Wealth Code of BNB, the Golden Shovel in a Bull Market
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Analyzing the Wealth Code of BNB, the Golden Shovel in a Bull Market
BNB has risen 50% since early March and surged over 80% in the past 30 days.
Navigating Web3 tides with focused insightsAuthor: Viee, Core Contributor of Biteye
Editor: Crush, Core Contributor of Biteye
According to DeFiLlama data, on March 10, the trading volume of DEXs on the BSC chain surpassed that of Ethereum's DEXs, claiming the top spot.
At the same time, BNB has surged nearly 30% in price over the past week, with trading volume also significantly increasing. So far in 2024, it has outperformed similar tokens, leading gains among exchange tokens and showing a commanding lead among native public chain tokens.
As Binance Exchange’s native token and the fuel token for BNB Chain, such remarkable momentum naturally fuels bullish sentiment around BNB—the golden shovel of this market cycle.
Why is BNB considered the golden shovel of this bull run? What wealth secrets underlie its current rally? This article explores the immense potential and opportunities behind the BNB token.
01 Recent BNB Price Surge
Recently, BNB's price spiked again, briefly breaking above 630 USDT—its highest level since December 2, 2021.
How strong has BNB’s rally been? It has risen 50% since early March and gained over 80% in the past 30 days.
Looking back at the previous bull market, BNB once reached an all-time high of 690.93 USDT. From 2022 to 2023, it fluctuated between 200–400 USDT. Now, it sits just 9% below its peak.
This upward momentum signals reduced market concerns over Binance's regulatory issues. Despite turbulence, BNB has shown strong resilience and helped restore investor confidence.
Moreover, Binance Launchpool (new token mining) has provided crucial momentum for BNB’s price surge.
02 Binance Launchpool
Binance Launchpool is a service offered by Binance Exchange where users stake cryptocurrencies to earn rewards from newly launched projects. This feature is often referred to as “new token mining.”
The process resembles staking-based mining, except the mined tokens cannot be traded immediately and may include high-potential quality projects. In essence, the exchange allows users low-cost, low-risk access to upcoming new tokens before listing.
There are multiple reasons behind BNB’s rapid price rise, but Binance Launchpool plays an indispensable role. The rules are simple: users stake BNB or FDUSD to mine and receive new token rewards. This mechanism directly empowers BNB, driving its price appreciation.
For example, AEVO, a derivatives exchange launched on Launchpool on March 6, significantly boosted BNB’s price.
Within less than a week, BNB rose from 400 USDT to 500 USDT, drawing widespread investor attention and participation.
Looking back, Binance has frequently launched seven Launchpool projects in Q1 alone, with participation ranging from hundreds of thousands to millions. Such sustained demand naturally pushes BNB’s price higher.
Launchpool Returns: Higher Rewards with BNB
Currently, BNB and major stablecoins are used in Launchpool to mine new tokens. Based on official Binance staking data, Biteye calculated the annualized yields (APY) across completed mining cycles for Q1 projects.
1) Participating in Launchpool is a relatively safe and high-yield mining method.
2) BNB mining yields significantly outperform those of stablecoins—almost equivalent to their combined returns. Binance Launchpool is essentially a "stable financial lottery" tailored for BNB holders.
To illustrate, let’s examine the historical yield performance of Launchpool👇🏻
1) Q1 2024 Launchpool New Token Mining Yields
2) Comparison of Mining Yields Using Different Tokens
Note: Prices referenced as of 19:00 on March 13 (UTC+8)
1) Over the past seven Launchpool rounds, average APY based on launch-day prices exceeded 100%, with MANTA achieving the highest return at 186.92%.
If measured against historical peak prices, APY would double. Given the short mining duration, user capital is tied up for minimal time. Thus, participating in Launchpool is both secure and highly rewarding.
2) From recent price surges, most new tokens listed via Launchpool have appreciated close to 200%, with XAI peaking near triple its initial trading price.
The quality of these projects is evident—many are fundamental standouts with strong user bases and growth potential, including AEVO (a derivatives platform), Pixel (a rising star in blockchain gaming), and Xai (an emerging L3 gaming chain).
Clearly, new token projects on Binance offer solid returns.
3) Comparing the three mining options, BNB consistently delivers much higher yields than stablecoins—nearly matching their combined returns.
Imagine holding 100 BNB during a bull market, simply staking them in the pool. Within 5–7 days, you could earn $1,000—a true golden shovel in a bull run.
03 Platform Development
BNB carries dual identity as both a "platform token" and a "public chain token," deriving value from the underlying exchange's fundamentals—truly "leaning on a big tree for shade."
This aligns with a basic principle: a platform’s development directly influences its token’s market performance.
Market Share
Despite challenges like the FTX incident, Binance has maintained a stable market share around 50%, retaining its position as the leading cryptocurrency exchange.
As shown below, Binance’s market share has steadily increased since Q1. In 2023, it attracted over 40 million new users, bringing total registered users to 170 million—an almost 30% year-on-year increase.
Business Expansion
From a business perspective, what kind of support does Binance provide for BNB?
The answer: immense upside and vast potential. As the world’s largest crypto exchange, Binance has expanded beyond trading into building a comprehensive crypto ecosystem.
First, Binance prioritizes user needs—such as upgrading Binance Square to retain creators and active users. Over the past year, creator count grew from 1,200 to 11,000, and daily active users rose from under 700,000 to over 1.6 million.
Frequent Launchpool launches allow users to earn returns surpassing most traditional investments. By leveraging its brand to benefit users, Binance fosters loyalty through mutual gain.
In October last year, Binance introduced copy trading, which achieved weekly average trading volumes exceeding $2 billion within three months—evolving toward a social trading platform.
Recently, Binance launched Futures NEXT, allowing users to predict upcoming futures listings and earn rewards. The NEXT Pool showcases a curated list of user-nominated potential listings.
Most notably, in November last year, Binance integrated a Web3 wallet into its app, enabling seamless switching between CeFi and DeFi with just one click—no complex registration required.
This update lowers the barrier for new users entering the Web3 space while making it easier for existing users to interact with blockchain applications.
Additionally, responding to strong user demand, the NFT marketplace was officially launched on Binance Web3 Wallet on February 1.
The latest update on March 15 added Solana network integration to the Web3 Wallet, allowing users to easily manage and trade SOL-based tokens and access various dApps.
Undoubtedly, the exchange remains central to Binance’s strategy, while Binance Labs plays a critical role in investment and incubation.
Binance Labs leverages industry-leading resources and funding to accelerate promising projects, reducing their listing and liquidity burdens. This strategy attracts top-tier teams and projects while expanding Binance’s user base—creating win-win outcomes and driving ecosystem growth.
Over the past year, Binance Labs has focused on Web3 gaming, DeFi ecosystems, and ZKP (zero-knowledge proofs), delivering diverse use cases and business models, enriching product offerings for users.
Beyond these areas, Binance’s ecosystem expansion includes public chains, forming a closed loop between CeFi and DeFi.
BNB Chain has evolved into a comprehensive DeFi system comprising multiple chains, integrating computing, storage, and Layer 2 technologies.
It’s no longer just a single chain but a full-stack multi-chain ecosystem, now a dominant force in the DeFi landscape.
Built on the thriving BNB Smart Chain, complemented by BNB Greenfield’s decentralized storage platform, BNB Chain delivers significant ecosystem benefits.
Furthermore, opBNB—based on Optimism technology—provides low-cost transactions, filling the Layer 2 gap and further reducing gas fees already low on BNB Smart Chain.
According to BNB Chain’s 2023 Annual Report, daily active users surpassed 1 million, marking substantial growth. On March 10, BSC’s DEX trading volume hit $2.474 billion—topping the leaderboard.
Ethereum’s DEX daily volume stood at $2.038 billion, ranking second; Solana’s reached $1.361 billion, placing third.
In the last quarter, BNB Chain has rolled out several key upgrades:
Cheaper: Plans to double opBNB transaction speed and reduce gas fees by 10x.
More Comprehensive: Introducing One BNB, aiming to unify BSC, opBNB, and Greenfield into a cohesive ecosystem, ensuring seamless interaction between decentralized computing and storage solutions.
More Airdrops: On March 13, BNB Chain launched an “Airdrop Alliance Program,” offering retroactive airdrops to BSC and opBNB users to reward community support and demonstrate strong commitment to ecosystem growth. Since BNB’s quarterly auto-burn is tied to total block production on BNB Chain, greater ecosystem activity makes future price appreciation even more likely.
Clearly, this thriving multi-chain system is poised to become a major force in the DeFi public chain arena.
04 Conclusion
Over years of expansion, Binance has built a vast Web3 footprint spanning core exchange services, cloud infrastructure, PoW mining pools, staking, financial and payment solutions, and investment/incubation activities through Binance Labs.
Simultaneously, with robust capabilities in DeFi via BNB Chain, Binance achieves comprehensive coverage across nearly every key sector.
Ultimately, BNB—the golden shovel—not only serves as the sole value-capture vehicle within Binance’s ecosystem but also unlocks the imaginative potential of a public chain token. Benefiting from both Binance and BNB Chain’s growth, its long-term value is highly compelling.
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