Binance Coin has just passed a milestone of $850.70 per token, marking a record high. The surge isn’t sudden. It has come after solid technical improvements, increased investor attention, and bullish momentum among decentralized platforms.
The Maxwell upgrade, implemented on June 30th, greatly enhanced the performance of the BNB Chain. It sped up the network and made it lighter and more secure, essential considerations for developers, traders, and validators.
Decentralized exchanges such as PancakeSwap, which are based on BNB Chain, saw increased trading volumes. Total value locked (TVL) within the chain also increased.
At the same time, some crypto whale accumulation displayed increased BNB holdings. This suggests that they view it as a long-term investment rather than a speculative position.
The rally in prices has had a spectacular impact on Binance CEO Changpeng Zhao's net worth, commonly referred to as CZ. He is estimated to hold approximately 89.1 million BNB tokens, which is around 64% of the available supply.
The Binance coin price of around $850 alone brings CZ’s cryptocurrency position to nearly $75.8 billion, which puts him at No. 23 on Forbes’ global rich list.
If you add his unknown equity in Binance, his overall net worth could be over $100 billion. However, such estimates are speculative and based on company valuations and liquidity assumptions.
Also Read: Crypto Prices Today: Bitcoin Price Climbs to $119,246 While BNB and Solana Lead Gains
BNB is deflationary. Binance has a standard token burn policy, which requires it to burn a portion of its supply each quarter permanently. This decreases the number of coins in circulation and puts pressure on the price over the long term.
More than half of the original 200 million tokens have already been burned. BNB’s widespread use within the Binance ecosystem, including trading fee discounts, DeFi tools, and NFT marketplaces, adds both scarcity and utility.
The coin isn’t just a store of value. It’s a functioning part of the platform, providing real-world applications and helping to maintain demand regardless of market conditions.
While CZ's fortune has increased exponentially, it remains highly concentrated. An overnight correction or change in market sentiment could wipe out billions, as the valuation is based on a single token within a highly speculative market.
There is also the issue of regulatory uncertainty. In 2023, media outlets reported on a settlement that occurred when CZ stepped down as CEO after reaching agreements with United States regulators. Although he remains influential, he has taken a less active role in the company. Investor confidence in Binance and its token could be adversely affected by any negative news, such as new lawsuits, exchange bans, or compliance issues.
Through his massive holdings, a centralized fear is instilled, along with market influence, in case he wants to sell some.
The success of cryptocurrencies is based on real growth, which includes network development, engaged users, and sound tokenomics. As long as these foundational elements are maintained, the future appears promising.
However, it is essential to recognize that investing in cryptocurrency is never without risk. For Changpeng Zhao, this is a significant achievement, but in a market characterized by sudden price drops and DeFi fluctuations, staying at the top will require careful planning, transparency, and credibility.