|
Getting your Trinity Audio player ready...
|
Key Takeaways:
- BNB underperformed with a 10% monthly gain while other majors rallied 20%+.
- Market dominance dropped to a five-month low of 2.60%, indicating structural weakness.
- Institutional attention is rising, but whale data shows large holders may be trimming exposure.
The cryptocurrency market is gaining momentum again, with nearly $140 billion in fresh capital pushing total altcoin valuations to $1.47 trillion this week—around 37% of the total market cap excluding Bitcoin. Yet amid this broad rally, Binance Coin (BNB) has notably underperformed its peers.
While most top-tier altcoins surged over 20% in recent weeks, BNB posted a modest 10% gain, despite finally cracking the $700 barrier after multiple rejections in Q2. Zooming out, the divergence is becoming more apparent in both dominance metrics and investor behavior.
BNB Dominance Drops to Five-Month Low
BNB’s market share has quietly eroded, slipping to 2.60% of the crypto market—a five-month low—down from 3.40% in mid-March. This reflects a steady bleed in BNB’s relative positioning as stronger performers like Ethereum, Solana, and newer high-beta altcoins steal market attention.
According to TradingView data, BNB’s dominance chart shows a clear pattern of lower highs and lower lows. While this doesn’t signal immediate danger, it underscores BNB’s struggle to maintain leadership as the altcoin rotation intensifies.
Institutional Moves Suggest a Long-Term Bet
Still, BNB may not be out of the game yet. As reported by AMBCrypto, recent decentralized exchange (DEX) activity and Binance Chain fundamentals remain strong, quietly attracting institutional eyes.
One example is Windtree Therapeutics [NASDAQ:WINT], which is reportedly preparing a $200 million raise to build a BNB-backed treasury. If realized, it could represent BNB’s first significant bridge to Wall Street, adding legitimacy and long-term potential to the token.
JUST IN: 🇺🇸 Publicly listed Windtree Therapeutics to buy up to $200 million worth of $BNB for its treasury. pic.twitter.com/tuMKqUDGaK
— Whale Insider (@WhaleInsider) July 16, 2025
Whale Activity Paints a Mixed Picture
However, blockchain data tells a more cautious tale. According to Glassnode, the number of wallets holding over 10,000 BNB has hit a near three-month low, indicating that some large holders may be selling into recent strength.
In contrast, major competitors like Solana have seen a surge in whale activity, with large wallet counts climbing back to Q1 levels and price action reflecting the shift. This divergence suggests that while institutional narratives around BNB are building, smart money may still be favoring more volatile, higher-reward plays for now.
Also Read: $31B in Stablecoins on Binance Sparks Altseason Hype as Bitcoin Exits Exchanges
BNB’s underperformance amid a strong altcoin rally poses tough questions for investors. The token’s lagging price action, declining dominance, and cooling whale participation contrast sharply with its solid fundamentals and growing institutional interest.
If the divergence continues, BNB risks being sidelined in the next bullish wave. However, a successful treasury move or resurgence in large-holder activity could reignite confidence and push the token toward the $800 mark.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
