Original author: CZ , Sakura

Original translation: TechFlow

On September 19, external KOL @sakura_xbt published a post on X, listing various catalysts and key factors, and analyzing why BNB recently broke through $1,000.

After the post was published, CZ also quoted it and published a long article to respond and comment.

We have compiled CZ's response and analysis of the original post below.

CZ: Why did $BNB break through $1,000?

Original post: Link

It's a good question, but no one is entirely sure. Correlation doesn't equal causation. But here are some possible reasons.

First of all, a lot of people overestimate me, but I don't actually do much. I'm not as technically involved as Vitalik, I'm more of a mascot than a regular community member.

Most importantly, I believe the new pro-crypto US government is likely the biggest driver . Their stance has impacted not only the US, but also most of the world. Most countries now have a pro-crypto stance, which is a huge boost for the industry. A rising tide lifts all boats, benefiting the entire industry.

Earlier this year, meme coins on the BNB chain experienced a resurgence. I made some mistakes that may have hindered the progress of meme coins on the BNB chain. I had never dabbled in meme coins before, and in my clumsy learning process, I may have sparked some intra-community competition (PVP), which led to some divisions in the community.

During this process, I also learned about the negative impact of the MEV attack (of course, in the public eye). Subsequently, BNB chain developers, nodes, block builders, wallets, DEX (decentralized exchanges), and other participants invested a lot of energy in mitigating MEV attacks.

At the same time, the BNB chain’s block time was reduced from 3 seconds to 1.5 seconds, and then to 0.75 seconds. Processing capacity was also significantly improved.

Gas fees on the BNB chain dropped 10x overnight, making it one of the lowest-fee blockchains.

Transaction volume surged further, with the BNB chain becoming the blockchain with the highest transaction volume.

Binance Alpha eliminates the need for project tokens to be listed on a smaller exchange, providing a smoother transition from DeFi (decentralized finance) to CeFi (centralized finance). I had no involvement in Alpha's design and only learned about it through X (formerly Twitter).

With the return of the meme coin, the BNB chain has also seen an increase in trading volume in other areas such as stablecoins, DEX, AI, and RWA (real world assets).

WLF issued the first native stablecoin, USD 1, on the BNB chain, further increasing on-chain stablecoin liquidity. The previous native stablecoin, BUSD (not issued by Binance), was shut down by the New York Department of Financial Services (NYDFS) in 2023, coinciding with the closure of three banks (Silvergate, Signature, and Silicon Valley Bank), leaving a gap that was ultimately filled by USD 1. USD 1 has grown rapidly.

Multiple RWA issuers are deployed on the BNB chain.

Hundreds of AI projects are deployed on the BNB chain.

The BNB chain destroyed $1.6 billion worth of BNB last quarter, and billions more in previous quarters. Many people ask, why destroy $1.6 billion? Why not use the money for marketing? Well...

In May, the U.S. Securities and Exchange Commission (SEC) dropped its lawsuit (initiated by Gary Gensler) against Binance, Binance US, and me personally. This removed the last remaining point of attack for BNB being considered a security. I'm not a lawyer, and this is just my layman's understanding, which could be wrong, but it's definitely good news for BNB.

YZiLabs (and other venture capital firms) have invested in/incubated dozens of strong projects on the BNB chain.

Existing projects are performing well. For example, Pancake Swap handles a huge amount of trading volume; Lista competes with Venus in the DeFi lending space; Four launches Meme Coin and RWA; Aster has an excellent TGE (Token Generation Event)...

Several DAT companies purchased BNB, with each purchasing hundreds of millions of dollars .

More developers are joining the BNB chain, and community support is strong. (Thank you everyone!)

...and many other reasons I don't even know about...

Finally, yesterday’s 0.25% rate cut must have had an impact to some extent, although I don’t fully understand it.

Most importantly, I look forward to more surprises from this vibrant ecosystem. Keep building!

KOL @sakura_xbt Analysis: Why did $BNB reach $1,000?

Original post: Link

There's been a lot of buzz surrounding @cz_binance and @binance , but few have been able to truly articulate the true catalyst driving $BNB's growth. So, I decided to do some research myself.

I analyzed the key factors that drove $BNB past this milestone. It turns out it wasn't a single event, but rather a combination of long-term fundamentals and short-term triggers.

In the following content, I will continue to explore more driving factors.

Timeline of recent events

I analyzed $BNB's recent uptrend towards $1,000 in September 2025, and it can be said that this is the result of a complex but fascinating combination of factors.

First, Binance’s announcement that it was in talks with the U.S. Department of Justice to remove its independent compliance monitor significantly changed the market’s perception of regulatory risk . This news alone significantly boosted investor confidence and directly ignited the price rally.

At the same time, the Federal Reserve's decision to cut interest rates by 25 basis points created favorable macroeconomic conditions for risky assets, attracting both institutional and retail investors to altcoins like $BNB. The Altseason Index reached a high of 80 in 2025, further confirming the market's shift of capital toward alternative assets.

I also delved into $BNB's fundamentals. Its deflationary tokenomics (nearly 1.6 million $BNB burned quarterly) have tightened supply. This deflationary pressure, combined with growing on-chain activity and a surge in BNB's total value locked (TVL) to nearly $7.8 billion, undoubtedly supports price increases.

Another interesting point is the speculation surrounding CZ’s potential return to Binance leadership. While this news has yet to be confirmed, it has fueled positive social sentiment and may have further bolstered optimism among loyal holders.

Different sources have varying opinions on the primary drivers, ranging from improved regulation to institutional demand and a positive market environment. From my perspective, however, no single factor fully explains this rally. It's the convergence of regulatory clarity, macroeconomic easing, institutional inflows, strong fundamentals, and positive community sentiment that has propelled $BNB to new all-time highs.

Therefore, when I see $BNB reaching the $1,000 level, I view it as a sustainable milestone, underpinned by deep, multifaceted support, rather than a one-time surge. This insight gives me confidence in the future resilience of $BNB.

Macroeconomic factors

I delved into macroeconomic policy in 2025, specifically the Fed’s shift from monetary tightening to easing , and its impact on the crypto markets and $BNB price.

The Federal Reserve cut interest rates by 25 basis points, marking the beginning of an easing cycle. According to my analysis, this move improved market liquidity and lowered borrowing costs. History shows that lower capital costs generally increase demand for risky assets, and the crypto market has followed this pattern.

Furthermore, US inflation has steadily declined toward its target range, allowing regulators to ease policy without overheating the economy. Economic indicators such as moderate GDP growth and a stable labor market suggest the possibility of a soft landing. This environment has reduced fears of a sharp economic downturn and fueled a rebound in risk appetite.

Globally, regulatory clarity, such as the EU’s MiCA framework, has boosted investor confidence by removing legal uncertainty. Meanwhile, a weaker dollar has had a dual effect: making dollar-denominated crypto assets like $BNB relatively more expensive while also reducing the opportunity cost of holding other assets.

All of these factors work together to create a favorable backdrop for risk assets in September 2025. Macroeconomic easing becomes an important underlying condition for $BNB to break through the $1,000 barrier. Without these supportive conditions, reaching this milestone will become much more difficult.

From my perspective, this shows that macroeconomic trends are closely linked to the dynamics of cryptocurrencies. Understanding this relationship is crucial for analyzing the price movements of major tokens like $BNB.

Drivers of the crypto market

I observe that $BNB’s phenomenal growth in 2025 is closely tied to the overall crypto market environment.

Bitcoin and Ethereum performed strongly, with $BTC breaking through $100,000 and $ETH rising to approximately $4,600, setting the stage for an "altcoin season" in which investors seek higher returns outside of mainstream currencies.

The Altcoin Season Index reached 80 out of 100 in September, indicating that most of the top altcoins outperformed Bitcoin, showing a clear rotation trend of capital.

Altcoin spot trading volume surpassed that of $BTC and $ETH, marking a rare shift in liquidity toward riskier assets.

As a top-five asset by market capitalization and closely tied to major exchange Binance, $BNB has been a major beneficiary of this trend.

Additionally, $BNB is supported by structural developments, such as VanEck’s submission of the first US spot $BNB ETF application and the growing institutional infrastructure, which further solidifies $BNB’s legitimacy and encourages further capital inflows.

In terms of technical indicators, the open interest of $BNB futures hit a record high, highlighting the market's increased speculative interest in it, which also provided support for price increases.

Taken together, the 2025 bull cycle, altcoin season, ETF optimism, and new liquidity have created a strong tailwind that has taken $BNB to new heights.

$BNB’s surge is not an isolated phenomenon, but rather the result of a convergence of favorable crypto market dynamics, demonstrating how the interplay of market forces can amplify gains for leading altcoins.

I believe understanding these market-wide drivers is crucial to understanding $BNB’s performance during this period.

$BNB Fundamental Analysis

I believe that $BNB's price breaking through $1,000 is based on solid fundamentals rather than pure speculation.

BNB's deflationary token economics play a key role. Over the years, Binance has consistently conducted token burns, reducing the initial supply from 200 million to 100 million. For example, in its 32nd quarterly burn in July 2025, Binance destroyed approximately 1.6 million BNB, reducing the circulating supply to approximately 139 million. This steady supply reduction creates scarcity, which naturally drives up prices as demand grows.

BNB’s utility within Binance’s vast ecosystem is another pillar.

BNB is a key asset for paying BNB Chain transaction fees, staking, trading fee discounts on Binance, and participating in token sales. The 2025 bull run significantly boosted network activity, with daily transactions approaching 10 million and active addresses increasing by over 30%. Total value locked (TVL) reached approximately $7.8 billion, driven by the growth of DeFi and liquid staking protocols, which also reduced the available supply in the market.

Furthermore, Binance's corporate development further solidified $BNB's foundation. Strategic large investors like Nano Labs (@NanoLabsLtd) have been accumulating $BNB reserves, demonstrating growing institutional confidence. These long-term holders have stabilized the price by reducing selling pressure.

Overall, the powerful combination of decreasing supply and expanding demand, based on real use cases, has supported $BNB's steady price increase, ultimately reaching the $1,000 milestone. This foundation gives me confidence that $BNB's upward trajectory is sustainable and backed by real fundamentals.

This analysis highlights the importance of understanding token economics and ecosystem utility when evaluating crypto market dynamics.

Technical and ecological factors

BNB Chain’s technological and ecological development are the key drivers of its rise as a leading smart contract platform.

Technical upgrades in 2025, such as the Lorenz and Maxwell hard forks, significantly improved the chain's scalability and efficiency. Block generation time was reduced to approximately 0.75 seconds, and transaction fees dropped tenfold to approximately $0.01 per transaction. These improvements brought throughput to nearly 5,000 transactions per second, comparable to centralized solutions, and resolved previous bottlenecks.

Furthermore, the launch and maturation of opBNB further enhances BNB Chain's capabilities. As an EVM-compatible optimistic rollup layer 2, opBNB offers ultra-low fees and speeds of up to 10,000 transactions per second. This enables BNB Chain to support new dApps that require high-frequency operations, such as the GameFi app.

Security has also been strengthened. Despite past attacks, by 2025, BNB Chain had stabilized without major vulnerabilities, and AI-based protections were introduced to prevent MEV (Miner Extractable Value) and bot attacks. This has strengthened trust, especially among institutional investors.

The ecosystem's growth has also been impressive. Thousands of dApps now run on BNB Chain, including decentralized exchanges (DEXs), NFT marketplaces, and tokenized real-world assets worth approximately $24 billion. These integrations have attracted traditional investors and increased market liquidity.

Binance’s partnerships extend the use of $BNB beyond the exchange, into payments and commerce through Binance Pay and the NFT platform. In select regions, crypto cards that accept $BNB for spending further broaden its utility.

These technological upgrades and ecosystem expansions together give BNB Chain a competitive advantage, making it a fast, low-cost, and mature platform by the end of 2025.

I conclude that these factors make $BNB more than just a trading discount token, but rather a reflection of the value of a strong and growing blockchain ecosystem, providing a solid foundation for its price to rise in 2025.

Regulatory and political factors

In my view, the key driver for a reduction in the $BNB risk discount in 2025 will be the gradual normalization of the regulatory environment surrounding Binance.

Binance initially faced risks after reaching a significant $4.3 billion fine settlement with the U.S. Department of Justice and establishing an independent compliance monitor. However, news in September 2025 regarding the potential early removal of regulatory oversight requirements indicated a significant recovery in Binance's compliance capabilities, reducing regulatory uncertainty.

Furthermore, Binance's adaptation to regulations outside the United States is crucial. The EU's implementation of the MiCA framework, along with Binance's licenses in Dubai, Japan, Latin America, and Southeast Asia, further mitigates legal risks globally.

Equally significant is the shift in regulatory attitudes in the United States. The new administration has adopted a pro-cryptocurrency stance and introduced clearer rules, such as classifying liquid collateral tokens as non-securities, marking a shift from the previous era of hardline enforcement.

Additionally, Binance’s improvements in transparency, KYC/AML (Know Your Customer/Anti-Money Laundering) policies, and proof of reserves have strengthened investor confidence and enhanced its resilience after market shocks.

Together, these regulatory and political developments have reduced the risk of Binance experiencing an unexpected shutdown or other disruptions. This change has encouraged investors to more fairly reassess the value of $BNB, reflecting the token’s true potential rather than over-pricing burdensome regulatory risks.

This case illustrates the importance of regulatory clarity and compliance in crypto asset valuation and investor confidence, especially in a volatile market environment.

Social and media factors

Social media-driven frenzy played a key role in pushing $BNB past the $1,000 milestone.

The community's collective optimism, combined with leadership signals from Binance founder CZ and key influencers, created a powerful positive narrative, amplified by widespread FOMO (fear of missing out) and viral engagement around topics like #BNB1000.

Data from LunarCrush and trending discussions on Reddit show a significant increase in social mentions of $BNB and search queries like “buy $BNB,” along with celebratory posts, indicating a widespread belief in the community that $BNB has entered the “mainstream camp,” alongside $BTC and $ETH.

In particular, CZ’s viral tweet expressed gratitude and confidence, sparked widespread recognition, and strengthened the conviction of holders while avoiding overly emotional hype.

While there are criticisms, they are largely drowned out by enthusiasm, creating a self-reinforcing cycle: rising prices lead to more positive discussion, which in turn encourages further buying.

This social wave accelerates the impact of fundamental factors and acts as a psychological catalyst, making price breakthroughs faster and more significant.

Social sentiment and media coverage can significantly influence cryptocurrency price dynamics, shaping investor psychology and market trends.

The $BNB case exemplifies how collective belief and community leadership can transform technological and financial advantages into real market success.

Comparison with $BNB’s previous all-time high

$BNB's rise above $1,000 in 2025 is significantly different from its previous peaks.

Unlike earlier cycles that were driven primarily by retail frenzy, this growth is built on a more mature ecosystem, significant institutional capital, and partially resolved regulatory risks.

The 2025 rally reflects a structural and sustainable upward trend, not just market hype.

My conclusions are based on a comparison of past cycles in 2021 and 2024, taking into account macroeconomic conditions, investor composition, token economics, and ecosystem metrics such as TVL (total value locked) and active addresses.

Institutional features are evident, such as corporate purchases of $BNB and ETF applications, while the automatic destruction mechanism supports supply constraints.

The $BNB chain ecosystem now includes advanced DeFi, RWA (real world asset) tokens, and shows improving technical health, including gradual price growth and moderate RSI (Relative Strength Index) readings.

Overall, this suggests that the market has matured to a higher quality level and that current price levels may be more stable than previous upcycles.

$BNB breaks through 1,000 yuan: A symphony of global trends and ecosystem maturity

$BNB’s breakthrough above $1,000 stems from a rare synergy of macroeconomic conditions, regulatory easing, and ecosystem maturation.

Key drivers include reduced regulatory pressure and the Federal Reserve’s shift toward lower interest rates. These changes removed two major obstacles to price increases: legal risks and high borrowing costs.

At the same time, the $BNB ecosystem reached a peak, with record network activity, continued growth in institutional buying, and token burns reducing supply. This combination provided a solid foundation for price increases, amplifying community conviction and FOMO (fear of missing out), making the price rise more legitimate than simply driven by hype.

The sustainability of the 1,000 yuan level depends on maintaining these favorable conditions. Institutional holders and real users bring more stable demand than previous speculative waves.

Regulatory clarity helps investors view $BNB as an asset with fundamental value rather than just a speculative token.

There may be short-term corrections, especially given the psychological round numbers and the volatility of the crypto market, but these pullbacks are unlikely to threaten the long-term upward trend supported by deflation and ecological growth.

$BNB's breakthrough reflects the multifaceted maturation of global trends and local success. Whether the $1,000 mark becomes a new benchmark or springboard depends on Binance's continued progress and future regulatory outcomes.

$BNB’s milestones are the product of a confluence of drivers, and its future path will be determined by the evolution of these factors.