In an era where companies and institutions are launching their own treasury firms, an investment firm announced that it will be launching its own BNB treasury. With the announcement, the price of BNB shot up and set a new all-time high, but the question is, will this momentum last?
As CoinMarketCap’s Altcoin Season Index (ASI), which shows if it’s Bitcoin season or an altcoin season, shifts more towards the altcoin season, people are preferring altcoins over Bitcoin. Part of the ASI movement is caused by institutions buying altcoins in lumps for treasury and other activities. In such a backdrop, investment firm BStrategy announced on Tuesday that it will launch its BNB treasury.
With the support of Hong Kong-based YZi Labs, the treasury firm (formerly Binance Labs), B Strategy hopes to raise $1 billion and establish a U.S.-listed BNB treasury company. “The company will dedicate capital and resources to actively foster ecosystem growth by investing in core technology development, providing grants for innovative projects, and supporting community initiatives,” read the press release.
With this announcement spreading far and wide, the price of Binance coin (BNB) appreciated and reached its new all-time high of $899 just a few days ago. However, will the coin will be able to hold onto this momentum for longer is the question that still begs an answer.
BNB Total Value Locked (TVL) increases
According to Defilama, the Total Value Locked (TVL) has increased from $6.78 billion to $7.35 billion from the beginning of August to date.
What does BNB’s increasing TVL mean?
It means that people are depositing funds, which signals trust in the protocol’s security and reliability. In DEXs (Decentralized Exchanges), higher TVL means deeper liquidity pools → better trading experience, less slippage. In addition, rising TVL often correlates with price growth of the platform’s native token, since more usage = more demand.
BNB’s rally will last; technicals and fundamentals align
BNB is currently forming a classic uptrend pattern, characterized by consecutive higher highs (HH) and higher lows (HL) on the chart. The 50-day moving average (MA) and 200-day moving average (MA) are trending upward. These two lines facing upwards depict that long-term and short-term market momentum is bullish.
More importantly, the 50 MA is trading well above the 200 MA, reflecting a healthy market with momentum across multiple time horizons.
Since fundamentally, the TVL is high, and technically, the market is bullish on both short-term and long-term, BNB’s uptrend has a solid foundation that could last.
