BNB Chain leads DeFi growth despite “Red October” market correction

BNB increased its monthly market cap by 6.2% to stand out as the only large-cap to finish in the green during the first red October since 2018. The total crypto market cap fell 6.1% during a volatile October, which also saw BTC’s market cap drop 4%, ADA’s value decrease by 24%, and SOL shed 12.7%.

Binance Research has released a report discussing the monthly developments in the crypto market in October. The report stated that October was a volatile month across crypto markets, with major assets experiencing sharp corrections or selective resilience.

It also implied that the downturn in “Red October” was partly due to the October 10 event, which wiped out over $19 billion in positions. Broader macroeconomic factors also weighed on sentiment.

However, Binance Research observed that despite the correction, the Binance token’s October rally was fueled by strong ecosystem growth. The launch of Polymarket and Myriad prediction markets, along with the rollout of Ondo Finance’s tokenized stocks and ETFs on BNB Chain, supported this growth.

BNB Chain leads DeFi growth

Despite the October downturn, BNB Chain led the growth of DeFi ecosystems, followed by Solana and Arbitrum. However, Ethereum and Tron posted slight drops. DeFi TVL (total value locked) also plummeted 4.85% MoM, as DeFi liquidity pulled out on market corrections. 

Meanwhile, stablecoin activity surged as investors sought safety. The total stablecoin market cap rose 3.54% as USDT continued to increase its lead over USDC. 

In October, JPYC (pegged on Japanese Yen) and EUROD (backed by the Euro) were introduced to the BNB Chain. The two expanded the range of stablecoins tied to major currencies beyond the U.S. dollar, enhancing the efficiency of cross-border payment. Binance Research observed that BNB Chain transactions spiked 135%.

Meanwhile, the spike was driven primarily by a memecoin frenzy that boosted token prices and attracted new traders. The memecoin excitement peaked in early October with over 100,000 new traders jumping into memecoins in a single day (October 7). 

Nearly 70% of these newcomers ended up in profit, according to the report. Approximately 40 individuals earned over $1 million, and another 6,000 received $10,000 or more in compensation. However, many of these memecoins crashed by October 8 and 9.

Binance token breaks $1,300 

The report stated that activity on the BNB Chain not only boosted transactions but also propelled the Binance token to surpass $1,300 on October 13. Binance Research observed that even with the pullback, BNB remained up 6.6% for the month, providing the chain’s resilience. 

The rally also appears to have been fueled by rumors that Binance co-founder Changpeng Zhao (CZ) was returning to the company. CZ previously explained that political, technical, and regulatory factors have fueled BNB’s rally. 

According to CZ, political shifts have previously supported the rise in BNB prices. He emphasized that the new U.S. administration has created a favorable environment for crypto. The Binance token price also jumped due to rising hopes that President Donald Trump would grant CZ a full pardon. 

Meanwhile, MEXC presented a report detailing the expected prices of BNB under different scenarios. In the bull scenario, BNB is expected to test the prior resistance of $1,300-$1,400 in the short term (Oct-Nov).

For the medium term (Q4 2025), BNB prices are expected to range between $1,500 and $1,800 if the macro environment remains supportive. In the long term (by 2026), the price is expected to reach $2,292.

In the base case scenario, assuming normal volatility and corrections, BNB prices in the short term are expected to remain consolidated between $1,000 and $1,250. For the medium term, a gradual climb toward $1,500 is expected by the end of 2025. However, BNB is expected to maintain a conservative average price of $1,090 in the long term. 

If you're reading this, you’re already ahead. Stay there with our newsletter.