Binance Recovers Strongly After $19B Liquidation Crash
BNB, the native token of the Binance ecosystem, experienced a remarkable rise to a record $1,370 on October 13, 2025, shortly following a $19 billion liquidation in the crypto market. The recovery highlighted Binance’s strength and the community’s restored confidence in the exchange.
The recent market upheaval, sparked by the introduction of new trade tariffs between the US and China, resulted in Bitcoin dropping below $11,000, while significant altcoins experienced declines of up to 30%. Binance encountered user dissatisfaction as wrapped assets such as wBETH plummeted by 90%, leading to frozen withdrawals and creating confusion around margin trading.
Binance Launches $283M Fund to Safeguard 150,000 Users
In a rapid move, Binance initiated a $283 million compensation program that reimbursed more than 150,000 users impacted by slippage and forced liquidations in just 24 hours. The action reinstated trust and brought stability to on-chain sentiment.
Changpeng “CZ” Zhao, the former CEO of Binance, commended the initiative, stating on X that Binance and its partners “invested hundreds of millions from their own pockets to safeguard users.” The compensation fund has led to a notable rise in BNB buying activity related to staking, fees, and rewards.
Institutional and On-Chain Data Turn Bullish
The recovery aligned with a significant institutional endorsement, as BlackRock revealed a 12% allocation to BNB in its portfolio. This strategic decision separated BNB from its correlation with Bitcoin, resulting in a beta decrease to 0.8, indicating a newfound independent strength.
BscScan, the on-chain analytics platform, noted a 20% surge in token transfers alongside a 35% rise in network volume, hitting a daily total of $15 billion. The acceleration of BNB burns for claim fees has enhanced the token’s deflationary model, leading to a 45% reduction in supply since 2017.
BNB Chain Experiences Remarkable Surge in Activity
Following the crash, BNB Smart Chain (BSC) experienced unprecedented levels of transaction activity. The weekly DEX volume reached an impressive $37.9 billion, exceeding the previous all-time high of $25.3 billion set in May 2021. Traders have been drawn to BSC because of its low transaction cost of $0.01 and impressive 3-second finality, surpassing both Ethereum and Solana.
Memecoins have taken over the trading scene on BSC, making up 60% of the overall volume. More than 1,200 meme projects have been initiated on Four Meme and Pump clones, resulting in $1.2 billion in swaps, with $DOGGOBNB and $PEPEKING accounting for over $700 million of that total.
Network and DeFi Metrics Reinforce Bullish Momentum
On October 13, the number of daily active BSC addresses surged by 70%, reaching 3.45 million, a significant increase from 2.06 million earlier in the month. There was a notable increase in smart contract calls, rising by 40% to reach 4.2 million, indicating ongoing interest and participation from both developers and users.
Prominent DeFi protocols such as Venus and Alpaca have announced a total value locked (TVL) of $8 billion, offering impressive APYs of 45% on BNB pairs. Bridges such as Anyswap have seen impressive inflows of $3.5 billion, with $200 million transitioning to BSC after the crash, significantly surpassing Solana’s $120 million flow.
Supply Constriction Fuels BNB’s Deflationary Momentum
The gas fees for BNB surged by 150%, while the daily token burns surpassed 500,000 BNB. Staking experienced a remarkable increase of 33%, securing 28 million tokens within smart contracts. The deflationary burn model, along with heightened staking participation, has tightened supply and intensified price movements driven by scarcity.
The BNB ecosystem is rapidly growing, boasting over 5,500 active dApps, among which Mobox stands out with an impressive 800,000 weekly sessions, outpacing any rival chain. BSC currently holds 50% of the perpetual DEX market share, achieving a monthly volume of $34 billion thanks to its Aster integration.
BNB Momentum Strengthens as Bull Flag Confirms Long-Term Breakout Trend
The weekly chart of BNB indicates a confirmed breakout from its enduring bull flag pattern. The formation, established in late 2023, indicated a target of $1,870—signifying a 51% increase from present levels.
Experts observe that even with the RSI at 72, there remains potential for further gains before reaching overbought territory. If a correction takes place, $1,000 and $860 act as crucial psychological and technical support levels for buyers monitoring the current rally.
