Original Title: "How Can Retail Investors Play with BNB Amid the Institutional Accumulation Wave?"
Original Author: @viee7227, Core Contributor at Biteye
Recently, BNB has experienced a remarkable structural market trend. After reaching its ATH in July, it has once again broken through the ATH of $865.68 today. With several publicly listed companies in the U.S. making significant purchases of BNB as asset reserves, along with favorable developments such as ETF applications, BNB, which was once viewed as a "trading platform token" + "public chain ecosystem token," is now evolving towards being recognized as an "institutional reserve asset."
This market trend may not just be a temporary hype but rather a re-evaluation and repositioning of BNB's value. This article will delve into the "institutionalization" path of BNB and explore various opportunities for retail investors to participate.
I. Review of BNB's "Institutional Evolution" Path
In the past two months, three significant events have occurred surrounding BNB:
· Several U.S. companies include BNB in their asset reserves: Since July, multiple publicly listed companies in the U.S. have announced plans to purchase or allocate BNB: CEA Industries, with support from Yzi Labs, plans to raise $500 million (up to $1.2 billion) to create the largest BNB reserve; Liminatus Pharma intends to invest up to $500 million in BNB for the long term; Windtree Therapeutics has approved up to $700 million for acquiring BNB; Nano Labs plans to invest $1 billion to gradually hold 5% to 10% of the circulating BNB supply, having already purchased 128,000 BNB off-market. This series of actions indicates that BNB is being viewed by some institutions as a reserve asset comparable to Bitcoin.
· ETF Windfall: In early May, well-known asset management company VanEck officially submitted an application to the U.S. SEC for a BNB ETF, which includes staking and other additional benefits. If approved, BNB is expected to become the focus of the next round of crypto ETF competition, following Bitcoin and Ethereum.
· BNB price breaks historical high: In response to the aforementioned positive developments, BNB has continued to strengthen, climbing to a historical high of $865.68 on August 14. The chart below shows that since mid-July, the weighted funding rate for BNB has consistently risen from negative to positive, with multiple spikes to about 0.015%–0.03%/8h between July 23 and August 14, in sync with the price increase; during the pullback phase, it did not turn negative for long, indicating bullish dominance, with both spot and leverage driving the price up, showing ample upward momentum and a relatively healthy structure.
Source: Coinglass
The above events reflect BNB's institutional transformation, expanding from a reliance on the internal value support of the Binance ecosystem to a new phase where it is actively allocated by traditional institutions. When "Wall Street-style" buying pressure floods in, BNB's value center gains structural upward momentum, creating a more long-term and stable demand source. For retail investors, this is a time to reassess BNB's long-term potential and share in the rising dividends of BNB through various avenues.
II. Retail Opportunity 1: On-Chain Activities in BNB Chain
For retail investors, actively participating in the BNB ecosystem on-chain is an important way to gain value increment, which can be achieved through various methods such as DeFi, RWA, and Meme.
DeFi: The leading DEX and lending protocols on BNB Chain currently have TVL ranking among the industry's top. For example, the leading decentralized exchange PancakeSwap (V3) has a TVL of about $2 billion, providing liquidity pool yields for various trading pairs; the established lending protocol Venus supports lending for mainstream assets like BNB; Lista DAO's TVL has also reached $1 billion. Retail investors can choose suitable DeFi strategies based on their risk preferences (as shown in the chart below).
RWA: BNB Chain is rapidly becoming an emerging platform for RWA on-chain. Ondo Finance announced in July that it would bring its tokenized products for over 100 U.S. stocks and ETFs to BNB Chain, allowing global users to trade some U.S. stock assets 24/7. Additionally, the xStocks program launched by Kraken and asset management company Backed will also be deployed on BNB Chain, supporting trading of over 60 U.S. stocks and ETFs. In terms of stablecoins, the Trump family company WLFI chose to launch the compliant stablecoin USD1 on BNB Chain, which has now integrated into the BNB Chain DeFi ecosystem and established a USD1 liquidity pool. Retail investors can more conveniently invest in U.S. stocks and bonds on BNB Chain, achieving diversified asset allocation.
Meme: At the beginning of the year, several phenomenal Meme tokens were born on BNB Chain, generating unprecedented market enthusiasm. If interested in trading Meme coins, one can scan the chain on Four.meme, the first fair launch platform for Meme on BNB Chain, to follow newly deployed tokens. However, it is essential to remember that the Meme market is highly volatile, and with current enthusiasm significantly declining, it is advisable to wait for a resurgence in interest before investing. From a market opportunity perspective, the popularity of Memes can bring considerable trading volume and new users to BNB Chain, further increasing the demand for BNB, which indirectly benefits BNB holders.
Overall, the BNB Chain ecosystem is currently in a phase of rising traffic and value influx. For retail investors, this also means that on-chain opportunities are gradually emerging, allowing them to earn returns steadily in blue-chip DeFi projects while also trying RWA activities or even discovering dark horse Memes. As the core value bearer of BNB Chain, the prosperity on-chain will ultimately translate into value support for BNB. Therefore, by deeply participating in the BNB Chain ecosystem, one is also growing alongside BNB.
III. Retail Opportunity 2: Coin-Stock Resonance, "BNB Concept Stocks" Stealth Strategy
In simple terms, when a publicly listed company announces significant purchases of BNB or incorporates BNB into its financial strategy, the stock prices of these companies begin to correlate highly with BNB. When BNB surges, these stocks often experience synchronous or even disproportionate increases, and vice versa. Therefore, if one has confidence in BNB's fundamentals, it may be worth considering stealthily accumulating related concept stocks before the market starts to rally. For example, MicroStrategy's continuous purchases of Bitcoin mean that retail investors buying MicroStrategy's stock are indirectly betting on Bitcoin's price movements, and sometimes MicroStrategy's stock price can even exceed Bitcoin's gains during the same period. Now, with the rise of institutional accumulation of BNB, a similar coin-stock resonance effect is expected to replicate.
As mentioned earlier, several companies plan to include BNB in their asset reserves (as shown in the chart above), and their stocks are highly correlated with BNB. So how should retail investors operate and manage risks?
· Grasp Information Timing: Closely monitor the announcement timing of these companies regarding BNB. Often, stock prices have already surged at the moment news is released, increasing the risk of chasing after the fact. For instance, pay attention to key milestones such as SEC filings, fundraising, and completion of purchases. Positioning at lower levels before the news can allow for phased profit-taking when the news materializes.
· Monitor BNB Price Correlation: These stocks are highly correlated with BNB prices. For example, when BNB broke above $800 at the end of July, stocks like CEA and Windtree also rose on the same day, and conversely, stocks may experience some pullback. Therefore, BNB's market movements can serve as a leading indicator; if one judges that BNB is about to start a new wave of upward movement, they can correspondingly increase holdings in related stocks and wait for resonance. However, it is important to note that if BNB experiences significant volatility, stocks may undergo even more drastic fluctuations.
· Pay Attention to the Relationship Between Concept Stocks and Binance: Some stocks have stronger market confidence due to involvement from Binance or CZ. Therefore, one can pay attention to whether there are further cooperative supports from the official side for these companies, such as whether they provide custody, strategic guidance, etc. These signals will enhance market trust in concept stocks holding BNB, thereby boosting valuations.
It is worth noting that these opportunities carry dual risks, influenced both by the volatility of the crypto market and by factors inherent to the stock market (such as dilution from financing, etc.). It is recommended to try small positions, strictly control exposure, and timely track fundamentals.
IV. Retail Opportunity 3: Trading Platform Activities
In recent years, Binance has launched various activities such as Launchpad, Launchpool, and Megadrop, most of which are related to BNB. In fact, utilizing trading platform activities effectively transforms BNB from a mere investment asset into a tool for obtaining diversified returns, allowing one to enjoy both the appreciation of BNB itself and additional earnings.
The table below summarizes several mainstream new mining activities on Binance, helping everyone choose suitable ways to earn based on their circumstances.
One can choose suitable strategies based on their capital size and time investment:
Conservative Holding Type: If one has substantial funds but does not wish to spend too much effort, they can adopt the "BNB Holding Party" strategy. This involves holding a certain amount of BNB long-term and actively participating in Launchpool and periodic HODLer airdrop activities. This strategy focuses on generating returns from BNB appreciation and airdrops of new tokens.
Active Participation Type: If one has limited funds but ample time and strong hands-on skills, they can try the "Alpha Points Party" route, aiming to reach the point thresholds for airdrops/TGE, Pre-TGE, and Booster. After completing tasks, they can exit in a timely manner to lock in profits. It is essential to emphasize that this strategy must calculate costs to avoid excessive trading fees and slippage that could lead to losses.
In addition to the main activities mentioned above, Binance also offers a range of benefits for BNB holders, such as VIP levels, fee discounts, voting for new listings, and Binance Pay cashback. For example, in Binance spot and futures trading, using BNB to offset fees provides discounts. Additionally, BNB holders can participate in exclusive financial products from Binance Earn, achieving multiple overlapping benefits.
V. Retail Opportunity 4: Holding BNB, Deflationary Dividends, and Token Economic Model
Regardless of the participation method, the vast majority of paths ultimately rely on holding BNB. One core reason many people are optimistic about holding BNB is its deflationary token economic model, which is the only deflationary token among the top market cap tokens. As of July 2025, approximately 60 million BNB have been burned (about 31% of the initial supply), reducing the circulating supply from 200 million to about 139 million. It is expected that BNB will reach a constant supply target of 100 million in the coming years.
Source: bnbburn.info, Binance Research Institute
Automatic Burn Mechanism: The earliest method of burning BNB was based on the trading volume on the Binance platform. Starting from Q4 2021, a new automatic burn algorithm was introduced, dynamically adjusting based on the price of BNB and the number of blocks produced on the BNB Chain. For example, in the recently completed 32nd quarterly burn, a total of 1,595,599.78 BNB were burned, valued at approximately $1.024 billion at the time of execution.
The formula for the automatic burn mechanism is shown below, where B represents the number of BNB to be burned this quarter, N represents the total number of blocks produced on the BNB Chain during this quarter (the number is determined by a fixed block time), P represents the average price of BNB, and K is a constant (currently set at 250 after the hard fork upgrade). From the formula, it can be seen that when the price is higher, the amount burned is less, and vice versa. The essence of this mechanism is to increase the deflationary intensity during market downturns by reducing circulation to maintain the value anchoring of BNB; while in a hot market, it automatically reduces the burn intensity to avoid excessive tightening of supply.
Real-Time Burn Mechanism: In addition to quarterly concentrated burns, the BNB Chain introduced the BEP-95 protocol in 2021 to achieve real-time burns on-chain. A fixed proportion of the Gas fees paid for each transaction on the BNB Chain is directly burned. The more prosperous BNB becomes, the more BNB is burned. In the long run, the increase in on-chain activity will also drive up trading volume, triggering more real-time burns.
For retail investors, the deflation of BNB means increased scarcity. Assuming stable or growing demand, a reduction in supply will raise the intrinsic value of each token. This is similar to publicly listed companies continuously repurchasing their stocks, increasing earnings per share and net assets, thereby benefiting stock prices. It is worth noting that BNB's commitment is around 100 million and will not decrease indefinitely to avoid impacting network operational security. Therefore, as it approaches 100 million, attention should be paid to whether policy adjustments are made, such as shifting to maintain a constant inflation rate. However, at least in the coming years, the deflationary trend is clear.
VI. BNB Value Re-evaluation and Future Outlook
With the entry of institutions, traditional financial institutions are also changing their re-evaluation of BNB's value. For example, Standard Chartered Bank pointed out in a report this May that it expects the price of BNB to double by the end of 2025, reaching about $1,275, and further rise to around $2,775 by the end of 2028.
Source: Standard Chartered Bank (for reference only)
Additionally, BNB's development in the payment sector will provide extra support for its value, further driving the market's upward adjustment of its valuation model. Binance's payment application, Binance Pay, has been promoted globally, positioning BNB as one of the important settlement currencies. Data shows that Binance Pay has processed 300 million transactions, with a total transaction volume of $230 billion, a significant portion of which uses BNB for transactions. For example, in the French Riviera region, Binance has partnered with fintech company Lyzi to enable over 80 local merchants to support crypto payments, including various currencies such as BNB. If this trend continues, the demand for BNB will not only come from investment and trading but also from real commercial circulation.
Overall, as of mid-2025, BNB is in an upward channel of value re-evaluation. Institutional accumulation has endowed it with the narrative of "digital gold reserve," ecological prosperity has given it the narrative of "leading public chain," and payment expansion has provided it with the narrative of "utility currency." The combination of multiple narratives creates further potential for BNB to increase its market cap. At the same time, it is essential to remain rational; the long-term value of BNB ultimately depends on whether the ecosystem can continue to build and maintain innovation and stable operations in a constantly changing market.
VII. Conclusion
From its origins as a platform token, to a popular public chain token, and now a crypto asset allocated by traditional institutional investors, BNB's transformation also reflects the maturity of the crypto industry. Amid the wave of institutional accumulation, retail investors can share in the value growth of BNB through various means, such as deep on-chain participation, positioning related concept stocks, engaging in trading platform activities, and holding BNB. As the slogan goes, "Build and Build," the value of BNB will be shaped and participated in by everyone. Looking ahead, can BNB usher in a new era of innovative gold with the combined efforts of institutions and retail investors? Let’s wait and see.
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