BNB increased its monthly market cap by 6.2%, standing out as the only large cap to finish in the green during the first Red October since 2018. The total cryptocurrency market cap fell 6.1% during a volatile October that also saw BTC’s market cap drop 4%, ADA’s value fall 24% and SOL fall 12.7%.
Binance Research has released a report discussing monthly developments in the crypto market in October. The report stated that October was a volatile month in the crypto markets, with major assets experiencing sharp corrections or selective resilience.
It also implied that the “Red October” downturn was partly due to the October 10 event, which wiped out more than $19 billion in positions. Broader macroeconomic factors also weighed on sentiment.
However, Binance Research noted that despite the correction, the Binance token’s October rally was fueled by strong ecosystem growth. The launch of the Polymarket and Myriad prediction markets, along with the rollout of Ondo Finance’s tokenized stocks and ETFs on BNB Chain, supported this growth.
BNB Chain is leading the growth of DeFi
Source: Binance Research DeFi TVL share in the top blockchains.
Despite the recession in October, BNB Chain led the growth of DeFi ecosystems, followed by Solana and Arbitrum. However, Ethereum and Tron posted slight declines. DeFi TVL (total value locked) also fell 4.85% MoM as DeFi liquidity retreated due to market corrections.
Meanwhile, stablecoin activity rose as investors sought safety. The total market capitalization of stablecoins increased by 3.54% as USDT continued to expand its lead over USDC.
In October, JPYC (pegged to the Japanese yen) and EUROD (backed by the euro) were introduced to the BNB chain. The two expanded the range of stablecoins pegged to major currencies beyond the US dollar, increasing the efficiency of cross-border payments. Binance Research found that BNB Chain transactions increased by 135%.
Meanwhile, the spike was mainly driven by a memecoin frenzy that boosted token prices and attracted new traders. The excitement about memecoins peaked in early October, when more than 100,000 new traders jumped into memecoins in one day (October 7).
Nearly 70% of these newcomers ended up with a profit, according to the report. About 40 individuals earned more than $1 million, and another 6,000 received $10,000 or more in compensation. However, many of these memecoins crashed on October 8 and 9.
Binance Token Breaks $1,300
The report stated that activity on the BNB Chain not only boosted transactions but also pushed the Binance token to cross $1,300 on October 13. Binance Research found that even with the pullback, BNB continued to rise 6.6% this month, helping the chain’s resilience.
The rally also appears to have been fueled by rumors that Binance co-founder Changpeng Zhao (CZ) was returning to the company. CZ previously explained that political, technical and regulatory factors fueled BNB’s rally.
According to CZ, political shifts have previously supported the increase in BNB prices. He emphasized that the new US administration has created a favorable environment for crypto. The Binance token price also rose on rising hopes that President Donald Trump would grant CZ a full pardon.
Meanwhile, MEXC presented a report with detailed information on the expected prices of BNB under different scenarios. In the bull scenario, BNB is expected to test the previous resistance of $1,300-$1,400 in the short term (October-November).
For the medium term (Q4 2025), BNB prices are expected to range between $1,500 and $1,800 if the macro environment remains supportive. In the long term (by 2026), the price is expected to reach $2,292.
In the base case, assuming normal volatility and corrections, BNB prices are expected to remain consolidated between $1,000 and $1,250 in the near term. For the medium term, a gradual increase to $1,500 is expected by the end of 2025. However, BNB is expected to maintain a conservative average price of $1,090 over the long term.