BNB Chain leads DeFi growth despite “Red October” market correction

BNB elevated its month-to-month market cap by 6.2%, standing out as the one giant cap to complete within the inexperienced in the course of the first Pink October since 2018. The entire cryptocurrency market cap fell 6.1% throughout a unstable October that additionally noticed BTC’s market cap drop 4%, ADA’s worth fall 24% and SOL fall 12.7%.

Binance Analysis has launched a report discussing month-to-month developments within the crypto market in October. The report said that October was a unstable month within the crypto markets, with main belongings experiencing sharp corrections or selective resilience.

It additionally implied that the “Pink October” downturn was partly because of the October 10 occasion, which worn out greater than $19 billion in positions. Broader macroeconomic elements additionally weighed on sentiment.

Nevertheless, Binance Analysis famous that regardless of the correction, the Binance token’s October rally was fueled by robust ecosystem progress. The launch of the Polymarket and Myriad prediction markets, together with the rollout of Ondo Finance’s tokenized shares and ETFs on BNB Chain, supported this progress.

BNB Chain is main the expansion of DeFi

Supply: Binance Analysis DeFi TVL share within the high blockchains.

Regardless of the recession in October, BNB Chain led the expansion of DeFi ecosystems, adopted by Solana and Arbitrum. Nevertheless, Ethereum and Tron posted slight declines. DeFi TVL (complete worth locked) additionally fell 4.85% MoM as DeFi liquidity retreated attributable to market corrections.

In the meantime, stablecoin exercise rose as traders sought security. The entire market capitalization of stablecoins elevated by 3.54% as USDT continued to increase its lead over USDC.

In October, JPYC (pegged to the Japanese yen) and EUROD (backed by the euro) have been launched to the BNB chain. The 2 expanded the vary of stablecoins pegged to main currencies past the US greenback, rising the effectivity of cross-border funds. Binance Analysis discovered that BNB Chain transactions elevated by 135%.

In the meantime, the spike was primarily pushed by a memecoin frenzy that boosted token costs and attracted new merchants. The thrill about memecoins peaked in early October, when greater than 100,000 new merchants jumped into memecoins in sooner or later (October 7).

Almost 70% of those newcomers ended up with a revenue, in response to the report. About 40 people earned greater than $1 million, and one other 6,000 acquired $10,000 or extra in compensation. Nevertheless, many of those memecoins crashed on October 8 and 9.

Binance Token Breaks $1,300

The report said that exercise on the BNB Chain not solely boosted transactions but in addition pushed the Binance token to cross $1,300 on October 13. Binance Analysis discovered that even with the pullback, BNB continued to rise 6.6% this month, serving to the chain’s resilience.

The rally additionally seems to have been fueled by rumors that Binance co-founder Changpeng Zhao (CZ) was returning to the corporate. CZ beforehand defined that political, technical and regulatory elements fueled BNB’s rally.

Based on CZ, political shifts have beforehand supported the rise in BNB costs. He emphasised that the brand new US administration has created a positive setting for crypto. The Binance token value additionally rose on rising hopes that President Donald Trump would grant CZ a full pardon.

In the meantime, MEXC introduced a report with detailed info on the anticipated costs of BNB underneath totally different eventualities. Within the bull situation, BNB is predicted to check the earlier resistance of $1,300-$1,400 within the brief time period (October-November).

For the medium time period (This fall 2025), BNB costs are anticipated to vary between $1,500 and $1,800 if the macro setting stays supportive. In the long run (by 2026), the worth is predicted to succeed in $2,292.

Within the base case, assuming regular volatility and corrections, BNB costs are anticipated to stay consolidated between $1,000 and $1,250 within the close to time period. Within the medium time period, a gradual enhance to $1,500 is predicted by the top of 2025. Nevertheless, BNB is predicted to keep up a conservative common value of $1,090 over the long run.