- BNB price reached its highest point since the FTX crash as users moved tokens to qualify for Portal’s upcoming airdrop rewards
- Over $400 million worth of BNB was transferred in 24 hours as users deposited tokens into Portal’s vault ahead of the Feb. 15 deadline
- The increase in BNB activity and pricing eases concerns about Binance’s finances after FTX’s collapse, with Binance reassuring users on reserves and audits
BNB holders transferred over $400 million worth of BNB tokens in 24 hours to benefit from cross-chain gaming project Portal’s upcoming airdrop, Arkham Intelligence noted.
BNB Price Reaches Highest Point Since FTX Crash
The price of BNB, the native token of the Binance Smart Chain, has climbed to its highest point since the collapse of rival exchange FTX as users moved their tokens to qualify for a crypto platform’s airdrop rewards.
BNB hit $305 on Wednesday, its loftiest level since Nov. 7 when the downfall of Sam Bankman-Fried’s empire triggered a major crypto market crash. The token remains down 65% from its all-time high of $686 in May 2021.
Portal Airdrop Drives BNB Movement
Data firm Arkham said the surge in BNB transfers was likely due to an upcoming airdrop from Portal, a multi-chain crypto gaming ecosystem. To qualify for Portal rewards, BNB holders need to deposit tokens into the project’s vault by Feb. 15.
Arkham estimated that users transferred at least $400 million worth of BNB in the 24 hours to Wednesday morning. That’s the largest daily transfer volume since last May.
Binance CEO Changpeng Zhao said on Twitter that Portal was attracting a lot of interest.
Easing Fears Around Binance
The BNB price jump will likely ease fears about Binance’s financial health following the FTX implosion. Like FTX’s native FTT token, BNB is highly correlated with Binance’s performance.
Binance said in November it had no exposure to FTX. The exchange also said this week that user assets are backed 1:1, with its reserves externally audited each quarter.
Conclusion
The surge in BNB transfers and token prices shows users are confident keeping assets on Binance despite the crypto market turbulence over the past few months. The upcoming Portal airdrop rewards have incentivized people to move their BNB holdings and gain exposure to the red-hot play-to-earn gaming sector.
