Binance's native altcoin BNB is on the verge of breaking a new record, with its value approaching its all-time high of $705.
This follows a significant gain of over 10% from Sunday's low of $597. As of now, BNB is trading at $669, up 7.64% in the last 24 hours.
The recent increase in BNB's value can be explained by the strong participation on Binance Launchpad and Launchpool platforms. These platforms require users to purchase and stake BNB to earn a share of a newly issued token. The last launch was the Telegram-based gaming token Notcoin (NOT).
However, the trading volume approaching $3 billion in the last 24 hours has caused option investors to act cautiously. They are currently buying options with strike prices ranging from $550 to $650.
“11,250 BNB options were traded, with call strike prices ranging from $600-$700 and put strike prices ranging from $650-$550,” said Bernd Sischka, Chief Commercial Officer at PowerTrade. He added that traders expect a lot of volatility as prices move towards 2024 highs.
With $7.5 million open interest in BNB options, most of the put options will become worthless if BNB continues to rise or remains at its current level.
*This is not investment advice.