BNB breaks all-time record. What’s happening with Binance?
BNB, the cryptocurrency created by Binance, broke above the $900 line for the first time, marking a new all-time high (ATH) in price.
At the time of publication, the BNB Smart Chain network’s native coin is trading at $901, as seen in the chart below provided by CoinMarketCap:
BNB’s good performance is largely explained by Binance announcing an alliance with Franklin Templeton, the financial giant that manages $1.6 trillion, to develop investment products.
As reported today, the companies will come together to seek to develop products that provide “agile settlement, clear pricing, and access to competitive returns for a wide variety of investors.”
In simpler terms, the goal is to connect traditional finance with the benefits that cryptocurrency networks provide, such as speed and low commission costs.
It should be recalled that Franklin Templeton entered the real-world asset tokenization (RWA) industry in 2022 and has a fund called the OnChain U.S. Government Money Fund (FOBXX), which is the third-largest in the tokenized Treasury bond market, as per reports.
Another reason behind BNB’s rise is that today it was known that, in August, the U.S. year-on-year producer price index (PPI), which reflects variations in the prices that producers receive for goods and services, rose by 2.6% year-on-year, below the 3.3% that was expected. For its part, the monthly PPI, projected at 0.3%, fell to -0.1%, evidencing a slowdown in production cost inflation.
This suggests that inflation at the producer level is falling faster than expected, increasing the odds that the U.S. Federal Reserve (FED) will cut interest rates.
The market expects the agency led by Jerome Powell to make a reduction of 25 basis points, taking rates to the order of 4-4.25%.
If the projections are fulfilled, it will be a bullish factor for cryptocurrencies because every time the interest rate drops, the cost of borrowing decreases, and there is more money available in the system. When this happens, the risk appetite resurfaces on the part of investors, who choose to place their holdings in assets that generate high returns, even assuming the volatility of the market.
Should macroeconomic conditions blow in their favor, it would not be unreasonable to see BNB breaking above the $1,000 line for the first time in its history.
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