Following its post-election surge to $793, Binance Coin [BNB] has experienced a 12% decline. While some investors have taken their profits or broken even, others are patiently waiting for a turnaround.
However, BNB’s comeback may rely on factors beyond its control.
A Competition for Supremacy
In 2024, BNB witnessed phenomenal growth, achieving a 134% increase year-to-date and exceeding a $100 billion market capitalization for the first time in three years.
Yet, 2025 started on a bearish note, with its value dropping by 12% and market share slipping below critical levels.
Meanwhile, competitors Ripple [XRP] and Solana [SOL] have made significant strides. Both have broken through psychological barriers, with SOL recording a remarkable 35% surge in just four weeks, reaching a $125 billion market cap.
Evidently, BNB has substantial ground to make up. To catch up, it would require a 50% price hike to surpass SOL’s market cap, double XRP’s valuation, and breach the $1,000 milestone.
But is it feasible? Let’s analyze the probabilities.
Since the ‘Trump pump’ subsided, BNB has been trading within a narrow range, maintaining a similar price level to a month ago.
There have been no significant pullbacks, which has kept it in a holding pattern.
While the Relative Strength Index (RSI) hints at upward potential, the Chaikin Money Flow (CMF) remains negative, deterring the bulls from seizing opportunities, and capital inflow remains feeble.
The BNB/BTC pair validates this trend, dropping to a two-month low. Nonetheless, the RSI is at levels where recoveries have occurred previously, and the CMF is gradually showing positivity.
With Bitcoin consolidating, there might be a shift back to high-cap coins by investors, potentially setting BNB up for a rebound – It’s essential to monitor this metric in the forthcoming days.
Nevertheless, BNB’s Struggle Persists
Despite BNB’s impressive 134% surge in the previous year, there is a possibility of an even more substantial increase in 2025, particularly with Trump’s ‘pro-crypto’ regulatory push. However, the real standout? XRP.
While BNB sets its sights on the $1K milestone, XRP is rapidly gaining ground.
With expanding real-world applications and increasing buzz surrounding an XRP strategic reserve or a potential XRP ETF, 2025 could be a transformative year for this alternative cryptocurrency.
XRP’s YTD growth exceeding 500% speaks volumes, with its market cap nearing $200 billion – a level that BNB would still be around 27.5% away from, even if it reaches $1,000.
The XRP/BTC pair reinforces this scenario. XRP is hitting new milestones, and BTC investors are including it in their portfolios for heightened returns – a prudent long-term strategy.
In the short term, BNB could witness a surge, recouping the 12% losses as the broader market bounces back. However, with XRP and SOL forging ahead, BNB will need to elevate its performance.
Its long-term prospects are becoming more competitive, with XRP and SOL maintaining their momentum – a dynamic to monitor closely as 2025 progresses.