- Binance Wallet onboarded 4.3 million users and controlled over 90% of the weekly crypto swap market.
- BNB could be the key beneficiary in the long run if the growth continues.
In just one week, Binance Coin [BNB] Wallet onboarded 4.3 million new users on-chain, extending its weekly crypto swap market share to +90%.
If the trend continues, this could set up the native BNB token’s further rally.
Source: Dune Analytics
BNB’s flywheel
According to Dovey Wan, founder of Primitive Ventures, a crypto investment firm, the growth has surpassed other ‘centralized’ wallets like OKX and MetaMask.
She pinned it on meme farming and airdrop hunting.
“Its market share just rips after launching of the alpha program, turned the wallet into a meme farming engine, token gated airdrop club and yield shovel.”
Notably, the alpha and airdrop programs often require users to hold or lock in BNB to participate, creating another demand line for the native token.
As a result, the campaigns, especially the alpha listing, have become a flywheel for BNB token and ‘funnel growth’ for the wallet, noted Wan.
Additionally, Wan stated that the growth could have been accelerated by the OKX wallet’s temporary discontinuation in late 2024.
In the past week alone, Dune Analytics data showed that Binance Wallet handled over $3B in weekly swapped volume.
When zoomed out at the chain level, BNB Chain/BSC was the second most dominant in weekly DEX volumes at 19% against Solana’s [SOL] 28%.
In fact, DEX volumes across the BNB chain ecosystem jumped 128% last week (nearly $19B).
This underscored the chain’s traction during risk-on sentiment. If the positive market sentiment persists, the best way to capitalize on this trend would be via an exposure to BNB.
For reference, SOL hit a cycle high of $295 in January after TRUMP memecoin debuted. This was due to the massive demand for the token, used as transaction fees, in the Solana DeFi ecosystem.
A similar scenario could play out if the Binance Wallet and overall BNB chain growth explode.
On the 3-day price chart, BNB briefly faced sell pressure after tapping the $690-$720 supply zone (red). But the $640-645 price zone was also a key short-term support and was above the mid-range of a multi-month channel.
In the short term, BNB could be range-bound between $600-$720; however, a bullish breakout from the 2-year channel could push it to $900.
Source: BNB/USDT, TradingView
