Original Author: CZ, Sakura

Original Translation: TechFlow Deep Tide

On September 19, external KOL @sakura_xbt posted on X, listing various catalysts and key factors, analyzing why BNB was able to break $1000 recently.

After the post was made, CZ also quoted it and posted a long article in response and comment.

We have translated CZ's response and the original post's analysis as follows.

CZ: Why Did $BNB Break $1000?

Original Post: Link

That's a good question, but no one can be completely sure of the reason. Correlation does not imply causation. However, here are some possible reasons for reference.

First of all, many people have overestimated my contribution; in fact, I haven't done much. I am not as technically involved as Vitalik; at best, I am just a mascot, more like an ordinary community member.

The most important point, I believe the new crypto-friendly U.S. government may be the biggest driving factor. Their attitude has not only influenced the United States but also most countries in the world. Nowadays, most countries have taken a supportive stance on cryptocurrency, which is a huge driving force for the entire industry. A rising tide lifts all boats, benefiting the entire industry.

Earlier this year, meme coins on the BNB chain made a comeback. I actually made some mistakes, which may have hindered the progress of meme coins on the BNB chain. I had never touched meme coins before. In the clumsy learning process, I may have sparked some in-community PvP competition, leading to some division within the community.

During this process, I also learned about the negative impact of MEV attacks (of course, in the public eye). Subsequently, developers, nodes, block producers, wallets, DEXes (decentralized exchanges), and other participants on the BNB chain invested a lot of effort in reducing MEV attacks.

At the same time, the BNB chain's block time was shortened from 3 seconds to 1.5 seconds, and then to 0.75 seconds. The processing power also increased significantly.

The Gas Fee on the BNB Chain has decreased by 10x overnight, making it one of the lowest-cost blockchains.

The transaction volume has further surged, making the BNB Chain the highest-volume blockchain.

Binance Alpha has removed the requirement for project tokens to first list on a small exchange, enabling a smoother process for projects transitioning from DeFi (Decentralized Finance) to CeFi (Centralized Finance). I had no involvement in the design of Alpha; I only learned about it on X (formerly Twitter).

With the resurgence of meme coins, the transaction volume on the BNB Chain has also increased in other areas such as stablecoins, DEX, AI, and RWA (Real-World Assets).

WLF has issued the first native stablecoin USD1 on the BNB Chain, further enhancing the on-chain stablecoin liquidity. The previous native stablecoin BUSD (not issued by Binance) was shut down by the New York Department of Financial Services (NYDFS) in 2023, coinciding with the closure of three banks (Silvergate, Signature, Silicon Valley Bank), leaving a gap that was eventually filled by USD1. USD1 has seen rapid growth.

Multiple RWA issuers have deployed on the BNB Chain.

Hundreds of AI projects are deployed on the BNB Chain.

In the last quarter, the BNB Chain burned $1.6 billion worth of BNB, with several billion dollars burned in previous quarters as well. Many people ask, why burn $1.6 billion? Why not use that money for marketing? Well...

The U.S. Securities and Exchange Commission (SEC) dismissed the lawsuit against Binance, Binance US, and myself in May (initiated by Gary Gensler). This removed the last potential attack vector where BNB could be deemed a security. I'm not a lawyer, this is just my layman's understanding, which could be wrong, but it's definitely good news for BNB.

YZiLabs (along with other VC firms) has invested/incubated dozens of strong projects on the BNB Chain.

Existing projects are performing well. For example, Pancake Swap is handling massive transaction volumes; Lista is competing with Venus in the DeFi lending space; Four has launched meme coins and RWA; Aster had a successful TGE (Token Generation Event)...

Multiple DAT companies have purchased BNB, with each buying in the hundreds of millions of dollars.

More developers are joining the BNB chain, and the community support is strong. (Thank you, everyone!)

...and many other reasons that I am not even aware of...

Lastly, yesterday's 0.25% rate cut definitely had some impact to some extent, although I don't fully understand it.

Most importantly, I look forward to this vibrant ecosystem bringing more surprises. Let's keep building!

KOL @sakura_xbt Analysis: Why did $BNB reach $1000?

Original post: Link

There has been a lot of discussion around @cz_binance and @binance, but almost no one has been able to truly explain what the real catalyst behind driving $BNB growth is. Therefore, I decided to research it myself.

I analyzed the key factors driving $BNB past this milestone. It turns out that it was not a single event but a combination of long-term fundamentals and short-term triggers.

In the following content, I will continue to explore more driving factors.

Recent Events Timeline

I analyzed the recent uptrend of $BNB approaching $1000 in September 2025, and it can be said that this is the result of a series of complex yet fascinating factors working together.

Firstly, Binance's announcement of negotiating with the U.S. Department of Justice to lift the independent compliance overseer was a game-changer, significantly altering the market's perception of regulatory risk. This news alone significantly boosted investor confidence and directly ignited the price surge.

At the same time, the Federal Reserve's decision to cut rates by 25 basis points created favorable macroeconomic conditions for risk assets, attracting institutions and retail investors to flock to alternative tokens like $BNB. The Altseason index reached a high of 80 in 2025, further confirming that the market was shifting capital towards alternative assets.

I also conducted in-depth research on the $BNB fundamentals. Its deflationary tokenomics (burning nearly 1.6 million $BNB every quarter) have made the supply even more scarce. This deflationary pressure, combined with the growth in on-chain activity and BNB's on-chain Total Value Locked (TVL) skyrocketing to nearly $7.8 billion, undoubtedly supported the price surge.

Another interesting point is the speculation about CZ potentially returning to the Binance leadership. While this news has not been confirmed yet, it has sparked positive social sentiment and may further boost the optimistic mood of loyal holders.

Different news sources have varying views on the primary drivers, with some attributing it to regulatory improvements, some to institutional demand, and a positive market environment. However, from my perspective, no single factor can fully explain this rally. It is the convergence of regulatory clarity, loose macroeconomic conditions, institutional inflows, strong fundamentals, and positive community sentiment that propelled $BNB to reach new all-time highs.

Therefore, when I saw $BNB reach the $1000 level, I considered it a sustainable milestone, supported by deep-rooted, multifaceted backing rather than a one-time price spike. This insight has filled me with confidence in the future resilience of $BNB.

Macroeconomic Factors

I delved into the 2025 macroeconomic policies, particularly the Fed's shift from monetary tightening to loose policy and its impact on the crypto market and $BNB price.

The Fed cut interest rates by 25 basis points, marking the beginning of a loose cycle. Based on my analysis, this move improved market liquidity and reduced borrowing costs. History has shown that lower capital costs typically increase demand for risk assets, and the crypto market has also followed this pattern.

Furthermore, the US inflation level steadily declined to the target range, allowing regulatory bodies to ease policies without overheating the economy. Economic indicators such as moderate GDP growth and a stable labor market imply the possibility of a soft landing. This environment reduces fears of a sharp economic downturn and fuels risk appetite.

Globally, regulatory clarity initiatives like the EU's MiCA framework have increased investor confidence by eliminating legal uncertainties. At the same time, the weakening of the US dollar has had a dual effect: making dollar-denominated crypto assets (like $BNB) relatively more expensive and lowering the opportunity cost of holding other assets.

All these factors combined to create a favorable backdrop for risk assets to shine in September 2025. Macroeconomic looseness became a crucial fundamental condition driving $BNB past the $1000 barrier. Without these supportive conditions, reaching this milestone would have been even more challenging.

From my perspective, this indicates a close correlation between macroeconomic trends and cryptocurrency dynamics. Understanding this relationship is crucial for analyzing the price movement of mainstream tokens like $BNB.

Drivers of the Crypto Market

I observed that $BNB's remarkable growth in 2025 was closely related to the overall cryptocurrency market environment.

Bitcoin and Ethereum showed strength, with $BTC surpassing $100,000 and $ETH rising to around $4,600, laying the foundation for investors to seek higher returns beyond mainstream coins during the "Altcoin Season."

The Altcoin Season Index reached 80 out of 100 in September, indicating that the performance of most top altcoins exceeded that of Bitcoin, demonstrating a clear capital rotation trend.

Altcoins' spot trading volume surpassed that of $BTC and $ETH, marking a rare shift of liquidity to higher-risk assets.

As one of the top five assets by market capitalization and closely associated with the major exchange Binance, $BNB became a major beneficiary of this trend.

Furthermore, structural developments also supported $BNB, such as the first U.S. spot $BNB ETF application submitted by VanEck and the growing institutional infrastructure, further cementing $BNB's legitimacy and encouraging more inflows.

In terms of technical indicators, the open interest in $BNB futures reached a historic high, highlighting the market's increased speculative interest and providing support for the price increase.

Overall, the bull market cycle of 2025, Altcoin Season, ETF optimism, and increased liquidity collectively created a strong tailwind that propelled $BNB to new heights.

$BNB's rise was not an isolated event but rather the result of favorable cryptocurrency market dynamics converging, demonstrating how market forces amplify the surge of leading altcoins.

I believe that understanding these market-wide drivers is essential to grasping $BNB's performance during this period.

$BNB Fundamental Analysis

I believe that $BNB's price breaking $1,000 was based on solid fundamentals rather than pure speculation.

BNB's deflationary tokenomics played a key role. Over the years, Binance has consistently conducted token burns, reducing the initial supply from 200 million to 100 million. For example, in the 32nd quarterly burn conducted in July 2025, Binance burned approximately 1.6 million BNB, reducing the circulating supply to around 139 million. This consistent reduction in supply has brought about scarcity, and as demand grows, the price naturally rises.

The utility of BNB within the extensive Binance ecosystem is another cornerstone.

BNB serves as a key asset for paying BNB chain transaction fees, staking, Binance Exchange fee discounts, and participating in token sales. The bull market of 2025 significantly boosted network activity, with daily transaction volume approaching 10 million, active addresses growing by over 30%. The total value locked (TVL) reached around $7.8 billion, benefiting from the growth of DeFi and liquidity staking protocols, which also reduced the available supply in the market.

Furthermore, Binance's corporate developments further solidified the foundation of $BNB. Strategic major investors like Nano Labs (@NanoLabsLtd) accumulating large reserves of $BNB demonstrate enhanced institutional confidence. These long-term holders stabilized the price by reducing sell pressure.

Overall, the powerful combination of reduced supply and expanding demand, based on real-world use cases, supported the steady price increase of $BNB, eventually reaching the milestone of $1000. This foundation convinces me that the rise of $BNB is sustainable and backed by genuine fundamentals.

This analysis highlights the importance of understanding tokenomics and ecosystem utility when evaluating dynamics in the crypto market.

Technical and Ecosystem Factors

The technical and ecosystem development of BNB Chain has been a key driver of its ascent to a leading smart contract platform.

The 2025 technical upgrades, such as the Lorenz and Maxwell hard forks, significantly enhanced the chain's scalability and efficiency. The block generation time was reduced to approximately 0.75 seconds, and transaction fees decreased by tenfold to about $0.01 per transaction. These improvements brought the throughput close to 5000 transactions per second, comparable to centralized solutions, addressing previous bottlenecks.

Additionally, the launch and maturation of opBNB further strengthened the capabilities of the BNB Chain. As an EVM-compatible optimistic rollup Layer 2, opBNB offers ultra-low fees and speeds of up to 10,000 transactions per second. This enables the BNB Chain to support new types of dApps requiring high-frequency operations, such as GameFi applications.

Security has also been enhanced. Despite past attacks, by 2025, the BNB Chain had become more stable, with no major vulnerabilities and introduced AI-based protective measures to prevent MEV (Miner Extractable Value) and bot attacks. This has increased trust, particularly the confidence of institutional investors.

The ecosystem's growth has also been remarkable. Thousands of dApps are now running on the BNB Chain, covering decentralized exchanges (DEXes), NFT markets, and the tokenization of real-world assets totaling around $240 billion in value. This integration has attracted traditional investors and increased market liquidity.

Binance's partnerships have expanded the use cases of $BNB beyond exchanges, entering the realms of payments and commerce through Binance Pay and NFT platforms. In some regions, the use of crypto cards that support $BNB spending has further broadened its utility.

These technology upgrades and ecosystem expansions together give BNB Chain a competitive edge, positioning it to become a fast, low-cost, and mature platform by the end of 2025.

My conclusion is that these factors have transformed $BNB from merely a trading discount token into a reflection of the value of a strong and evolving blockchain ecosystem, laying a solid foundation for its price appreciation by 2025.

Regulatory and Political Factors

In my view, a key driver behind the reduction of $BNB's risk discount in 2025 is the gradual normalization of the regulatory environment surrounding Binance.

Binance reached a significant $4.3 billion settlement with the US Department of Justice and established an independent compliance supervisor, initially posing a risk. However, news in September 2025 about the potential early termination of regulatory oversight requirements indicated a significant recovery in Binance's compliance capabilities, reducing regulatory uncertainties.

Furthermore, Binance's adaptation to regulations outside the US is crucial. The EU introduced the MiCA framework, and Binance obtaining licenses in Dubai, Japan, Latin America, and Southeast Asia further lowered legal risks globally.

The shift in the US regulatory stance is equally important. The new administration has taken a pro-cryptocurrency position and enacted clearer rules, such as designating staking tokens as non-securities, marking a shift from the previous era of aggressive enforcement.

Additionally, Binance's improvements in transparency, KYC/AML (Know Your Customer/Anti-Money Laundering) policies, and reserve transparency have boosted investor confidence and increased its resilience after weathering market shocks.

These regulatory and political advancements have collectively reduced the risk of Binance facing sudden shutdowns or other disruptions. This change has prompted investors to more fairly reassess the value of $BNB, reflecting the token's true potential rather than excessively factoring in heavy regulatory risks.

This case illustrates the importance of regulatory clarity and compliance in the valuation of crypto assets and investor confidence, especially in a volatile market environment.

Social and Media Factors

Social media-driven frenzy played a key role in driving the $BNB breakout above the $1000 milestone.

The community's collective optimism combined with Binance founder CZ's and key influencers' leadership signals created a strong positive narrative. This atmosphere was further amplified by widespread FOMO (Fear of Missing Out) and viral interactions around themes like #BNB1000.

Data from LunarCrush and popular discussions on Reddit show a significant increase in social mentions and search queries related to $BNB (e.g., "buy $BNB"), along with celebratory posts indicating that the community broadly believes $BNB has entered the "mainstream" alongside $BTC and $ETH.

Notably, CZ's viral tweets expressing gratitude and confidence garnered widespread recognition, enhanced holders' beliefs, and avoided overly emotional hype.

Despite some criticisms, they were mostly drowned out by the enthusiasm, forming a self-reinforcing cycle: price surges spark more positive discussions, which in turn encourage more buying.

This social wave accelerated the impact of fundamental factors, acting as a psychological catalyst for faster and more significant price breakthroughs.

Social sentiment and media coverage can significantly influence cryptocurrency price dynamics, shaping investor psychology and market trends.

The case of $BNB clearly demonstrates how collective belief and community leadership can translate technological and financial advantages into tangible market success.

Comparison with $BNB's Previous All-Time High

The surge of $BNB above $1000 in 2025 differs significantly from its previous peak.

Unlike earlier cycles driven mainly by retail frenzy, this growth is built on a more mature ecosystem, substantial institutional capital, and partially mitigated regulatory risks.

The 2025 uptrend reflects a structural and sustainable upward trend rather than mere market speculation.

My conclusion is based on comparing past cycles in 2021 and 2024, considering macroeconomic conditions, investor composition, tokenomics, and ecosystem metrics (such as TVL and active addresses).

Significant institutional features, such as corporate purchases of $BNB and ETF applications, while the burn mechanism has supported supply constraints.

The $BNB chain ecosystem now includes advanced DeFi, RWA (Real-World Asset) tokens, and demonstrates improved technical health, including gradual price growth and moderate RSI (Relative Strength Index) data.

Overall, this indicates that the market maturity has reached a higher quality level, and the current price level may be more stable than in the previous bull run.

$BNB Breaks $1000: Global Trends and Ecosystem Maturation in Concert

The breakthrough of $BNB above the $1000 mark is attributed to a rare synergy of macroeconomic conditions, regulatory easing, and ecosystem maturity.

Key driving factors include the relaxation of regulatory pressure and the Federal Reserve's shift to a rate-cutting policy. These changes have removed the two major barriers to price increase: legal risk and high borrowing costs.

Meanwhile, the $BNB ecosystem has reached its peak, with record network activity, increasing institutional buy-ins, and the supply reduction from the burn mechanism. This combination has provided a solid foundation for the price surge, amplifying community belief and FOMO (Fear Of Missing Out), making the price rise more rational, rather than purely speculative.

The sustainability of the four-digit level depends on maintaining these favorable conditions. Institutional holders and real users bring a more stable demand than the speculative frenzy of the past.

Regulatory clarity helps investors view $BNB as an asset with intrinsic value, not just a speculative token.

Short-term corrections may occur, especially considering psychological levels and the volatility of the crypto market, but these pullbacks are unlikely to threaten the long-term upward trend supported by deflation and ecosystem growth.

The breakthrough of $BNB reflects a multifaceted maturity of global trends and local success. Whether the four-digit milestone becomes a new benchmark or springboard depends on Binance's ongoing progress and the evolution of future regulatory outcomes.

$BNB's milestone is the result of the interaction of various driving factors, and its future path will be determined by the evolution of these factors.

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