BNB saw a 6.2% increase in its monthly market cap, standing out as the only large-cap cryptocurrency to finish in the green in the midst of a red October, the first since 2018. While the total crypto market cap dropped by 6.1% during the volatile month, BTC’s market cap fell by 4%, ADA’s value decreased by 24%, and SOL shed 12.7%.
Binance Research recently published a report discussing the developments in the crypto market for the month of October. The report highlighted the volatility across crypto markets, with major assets experiencing sharp corrections or showing selective resilience.
The downturn in “Red October” was attributed in part to an event on October 10 that wiped out over $19 billion in positions. Additionally, broader macroeconomic factors also contributed to the negative sentiment in the market.
Despite the correction, Binance Research noted that the rally in the price of the Binance token in October was driven by significant ecosystem growth. The introduction of Polymarket and Myriad prediction markets, as well as the launch of Ondo Finance’s tokenized stocks and ETFs on BNB Chain, supported this growth.
BNB Chain Leads DeFi Growth
Source: Binance Research DeFi TVL share of top blockchains.
Despite the challenges in October, BNB Chain emerged as the leader in the growth of DeFi ecosystems, followed by Solana and Arbitrum. However, Ethereum and Tron saw slight decreases in their performance. DeFi TVL (total value locked) also experienced a 4.85% decline month-over-month as DeFi liquidity was withdrawn due to market corrections.
Meanwhile, stablecoin activity surged as investors sought safety. The total stablecoin market cap increased by 3.54% as USDT continued to strengthen its position over USDC.
During October, JPYC (pegged to the Japanese Yen) and EUROD (backed by the Euro) were introduced on the BNB Chain. These additions expanded the range of stablecoins tied to major currencies beyond the U.S. dollar, enhancing the efficiency of cross-border payments. Binance Research reported a 135% spike in BNB Chain transactions.
The spike in transactions was primarily driven by a surge in memecoin trading, which boosted token prices and attracted new traders. The excitement around memecoins peaked in early October, with over 100,000 new traders joining the market in a single day (October 7).
According to the report, nearly 70% of these new traders made profits, with around 40 individuals earning over $1 million and 6,000 receiving $10,000 or more in returns. However, many of these memecoins experienced sharp declines on October 8 and 9.
Binance Token Surpasses $1,300
The BNB Chain activity not only increased transactions but also propelled the Binance token to surpass $1,300 on October 13. Despite the subsequent pullback, BNB remained up by 6.6% for the month, showcasing the chain’s resilience.
The rally in BNB’s price was also fueled by rumors of Binance co-founder Changpeng Zhao (CZ) returning to the company. CZ highlighted that political, technical, and regulatory factors played a role in driving BNB’s rally.
Political shifts, in particular, have supported previous increases in BNB prices, according to CZ. He emphasized that the new U.S. administration has created a favorable environment for cryptocurrencies. Additionally, the price of the Binance token surged on hopes that President Donald Trump would grant CZ a full pardon.
Meanwhile, MEXC released a report outlining the expected price movements of BNB under various scenarios. In the bullish scenario, BNB is expected to test the previous resistance levels of $1,300-$1,400 in the short term (October-November).
Looking ahead to the medium term (Q4 2025), BNB prices are projected to range between $1,500 and $1,800 if the macro environment remains supportive. By 2026, the price is anticipated to reach $2,292 in the long term.
In the base case scenario, assuming normal volatility and corrections, BNB prices are expected to consolidate between $1,000 and $1,250 in the short term. For the medium term, a gradual climb towards $1,500 is forecasted by the end of 2025. However, in the long term, BNB is expected to maintain a conservative average price of $1,090.