According to data from Coingecko, Binance Coin (BNB) surged from around $264 to above $288, a 9% increase in the last 24 hours. Binance's flagship cryptocurrency started to rally in mid-December after a bearish month. At the press time, BNB's market cap stands at $42.41 billion, holding the 4th position.
Binance Coin is back in the spotlight as its price has surged by 9% over the past 24 hours. BNB is still under pressure, but with a wide rally across the crypto complex, investors seem to be piling into the token.
BNB was previously among the third-largest altcoins, behind Ethereum (ETH) and stablecoin Tether (USDT). However, the recent growth of Solana (SOL) has outpaced BNB and Ripple (XRP).
BNB Bulls Shoot for SOL
SOL has taken over the 4th position in market capitalization as its price continues to jump. Over the past year, Solana has skyrocketed over 600%, an impressive resurgence compared to other top cryptocurrencies. The cryptocurrency is now trading at approximately $114.90.
Likewise, Solana's market cap is approaching $50 billion. With today's rally, analysts weigh in on Binance Coin's chance to challenge Solana's position.
Following CZ's decision to step down as Binance's CEO on Nov. 22, BNB briefly plummeted from $269 to $230. Meanwhile, data from Coingecko showed the settlement news rippling through the market, impacting major players like Bitcoin and Ethereum. Crypto markets plunged, with Bitcoin dropping 20% below $36,000 and ETH diving 15% under $2,000.
However, December saw a bullish resurgence across most cryptocurrencies, with green candles lighting up the charts. Yet, BNB remained sluggish, seemingly late to the party until recently.
Binance Coin is Binance's native token designed to fuel the ecosystem. Initially built on Ethereum as an ERC-20 token, Binance Coin later transitioned to Binance Smart Chain. Despite market volatility and changing regulatory landscapes, the cryptocurrency continues to hold a strong position among leading cryptocurrencies.
Will Binance Overcome Legal Challenges in 2024?
The future of Binance Coin remains tied to the firm's future and its technology's continued development. While Binance reached a landmark settlement with the US authorities, the legal battle between Binance and the U.S. Securities and Exchange Commission (SEC) is still ongoing.
Binance has reached settlements with other US authorities, including the Department of Justice, the Commodity Futures Trading Commission, and the Financial Crimes Enforcement Network, addressing concerns related to AML/KYC and certain platform functionalities. However, these settlements don't resolve the ongoing lawsuit with the SEC.
The SEC filed a lawsuit against Binance and its founder, Changpeng Zhao (CZ), in July 2023. Both parties have filed motions to dismiss the lawsuit, and the legal battle is in the pre-trial stage. The US has been harsh on cryptos, and isn't letting up.
In the meantime, Binance has also faced regulatory scrutiny and challenges in other jurisdictions. The Financial Conduct Authority (FCA) issued a warning against Binance in June 2021, stating that it was not authorized to operate in the UK.
Binance has reportedly been working to address the FCA's concerns and obtain regulatory approval. The exchange announced its partnership with Rebuildingsociety.com in an effort to comply with the FCA's updated regime. Unfortunately, the UK watchdogs ordered Binance's partner to remove crypto ads shortly.
The Dutch central bank, De Nederlandsche Bank (DNB), ordered Binance to cease offering its services to Dutch residents in July 2022, citing concerns about AML/KYC compliance. Failing to obtain the license from the DNB, the exchange decided to cease its operation in the country in July this year.
BaFin, the German Federal Financial Supervisory Authority, issued a similar order to Binance in July 2022, prohibiting it from offering crypto custody services to German users. At first, the crypto exchange appealed this decision, saying it sought regulatory clarity in Germany. However, Bloomberg reported that it withdrew the request in July 2023.
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