HomeBlockchainBNB wins “Uptober” in Binance market crash investigation

BNB wins “Uptober” in Binance market crash investigation

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October is historically one among Bitcoin (BTC)'s best performing months, but this 12 months BNB (BNB) is stealing the show.

“Uptober” – coined to explain Bitcoin’s typically bullish October months – began this 12 months on a high note just as the federal government shutdown within the US had just begun. Now that Washington's funding blockade has continued for greater than three weeks, that optimism has faded amid trade tensions and the aftermath of a historic liquidation event.

Meanwhile, BNB, the native token of Binance’s BNB Chain, has hit recent all-time highs twice this month. The network is experiencing a surge in memecoin trading and is directly competing with Hyperliquid within the decentralized perpetual market through its Aster platform.

Although BNB has since retreated from its peak, it continues to be up about 6% for the reason that starting of October. However, these gains come against the backdrop of accelerating scrutiny over Binance's alleged role within the recent market crash.

Binance’s BNB and Memecoin Season Drives Metrics Forward

Solana has long been the go-to network for memecoins. This is essentially because of the token launchpad Pump.fun. But in October, its dominance was challenged by a brand new wave of BNB chain-based tokens.

A cryptocurrency wallet reportedly turned $3,000 into $2 million on October 4 after Binance co-founder Changpeng Zhao shared a post a couple of memecoin. This moment coincided with the beginning of a memecoin frenzy on the BNB chain.

As of October 1st, Pump.fun accounted for 93.3% of all memecoin launches between the 2 platforms. On the day of Zhao's post, that share had dropped to 56.2%. Per week later, on October eighth, the BNB chain's Four.meme turned the tide with 83.9% of recent token launches, while also surpassing Pump.Fun's each day revenue generation. BNB hit a brand new all-time high above $1,300.

During Four.meme's surge in early October, blockchain analytics platform Bubblemaps reported that 100,000 traders purchased recent memecoins on the BNB chain, with a profit of 70%.

The momentum has also improved the network's broader metrics. According to Nansen data, BNB Chain led all blockchains in total fees last week, while it ranked second in lively addresses and transactions despite declining on-chain activity across the industry.

Shortly thereafter, the crypto market experienced the biggest liquidation ever: positions price $19 billion were worn out and around $450 billion was wiped from the full market capitalization.

Following the crash, the BNB chain rewarded its memecoin traders with a round of airdrops price $45 million.

BNB Chain DEX Aster's data drama and Binance's technical glitch

While BNB has had a historic month as Bitcoin struggles to get well from the recent liquidation frenzy, Binance is keeping off growing allegations about its role within the crash.

One of the fundamental allegations pertains to a price oracle malfunction that briefly showed Ethena's synthetic dollar, USDe, losing its greenback peg to Binance, whilst prices remained stable elsewhere.

Trevor King, an analyst at Delphi Digital, said that Binance valued wrapped assets comparable to wBETH, BNSOL and USDe based on the exchange's own spot prices quite than their redemption values. This made the securities appear weaker than they really were. Since Binance’s oracle served because the de facto “record price” on all leveraged trading platforms, the mispricing impacted other platforms. King also added that a broader market downturn had already begun before the Binance price error occurred.

Subsequently, several X users reported suffering losses that day on account of Binance's system issues. One of the viral posts got here from the 812.eth account, which quoted a “market maker friend” as claiming that orders on Binance were repeatedly rejected as prices fell, exacerbating losses. The post has since been deleted.

Binance denied being the reason for the crash and attributed the selloff to general market conditions after US President Donald Trump threatened one hundred pc tariffs on Chinese imports. The exchange admitted that “some platform modules briefly experienced technical glitches” and that “certain assets experienced issues with release on account of significant market fluctuations.” Binance said it ultimately paid out $283 million in compensation. Despite the turmoil, BNB rose sharply again, reaching a brand new all-time high of $1,370 on October thirteenth.

On that day, Hyperliquid was the highest platform for liquidations. The fast-growing Perpetuals Decentralized Exchange (DEX) now faces a rival in BNB Chain’s Aster.

On October 6, Aster led all perpetual DEXs with a whopping 24-hour trading volume of $41.78 billion. However, DefiLlama later removed Aster's data, citing concerns in regards to the integrity of its metrics. Although the platform was quietly relisted, DefiLlama founder 0xngmi said the numbers still can’t be verified.

BNB is popping Bitcoin’s “Uptober” into its own victory lap

October was the month of Bitcoin, but this 12 months the main focus shifted to the Binance ecosystem.

A burst of memecoin trading, recent incentives and the rise of Aster pushed BNB to record highs, defying a market weighed down by historic liquidations and international trading tensions.

As Bitcoin experiences its worst October in greater than a decade, network activity and BNB chain fee generation proceed to rise.

The dynamics weren’t flawless. Binance is under renewed scrutiny for its price oracle error, bringing renewed scrutiny to how centralized its ecosystem actually is.

Aster's short distance from DefiLlama only increased skepticism about how the numbers were trending. But despite these cracks, BNB is popping a quiet month for cryptocurrencies into one among its strongest performances of the 12 months.

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