Binance Coin (BNB) experienced a significant price decline this week, largely driven by speculative trading after a cryptocurrency airdrop and technical issues on the Binance exchange, despite the platform’s swift introduction of a substantial user compensation program.
The digital asset fell 8.79% in 24 hours to trade at $1,152.62 USD as of October 15, 2025. This downturn followed a recent all-time high of $1,370.14 USD achieved just two days prior, marking a 15.88% reduction from its peak.
The sharp sell-off primarily stemmed from traders who had acquired tokens within the BNB ecosystem in anticipation of an $ASTER airdrop. Many then sold their holdings once the airdrop was confirmed, intensifying downward price pressure.
Further contributing to the volatility, Binance reported platform glitches over the weekend. Some market observers linked these technical difficulties to a broader $19 billion flash crash in the cryptocurrency market.
In response to the platform issues, Binance launched a $400 million program aimed at compensating affected traders. This initiative includes $300 million in vouchers and $100 million in loans, designed to rebuild user confidence.
Despite the short-term price correction, trading volume for BNB surged to $6.1 billion USD daily, representing a 14.05% increase above its 30-day average. This elevated activity confirms the legitimacy of the market’s movement.
Data from the derivatives market indicated a shift in sentiment, with funding rates on perpetual contracts turning negative and open interest in BNB futures dropping 12% to $2.5 billion USD. This suggested an unwind of overleveraged long positions.
On-chain metrics for the BNB Chain remain robust. The network recorded 1.2 billion daily transactions, a 15% increase above its average, and its Total Value Locked (TVL) reached $5.2 billion USD. The platform reportedly surpasses competitors like Solana in fee efficiency.
Further supporting a long-term positive outlook, Binance recently completed a $575 million USD token burn, a deflationary measure that reduces supply. News of a potential Coinbase listing for BNB also presents a future bullish catalyst.
BNB’s market capitalization stands at $160.42 billion USD. Over the past 30 days, it has delivered a 24.79% return, with an annual return of 91.57%.
Analysts note that BNB currently trades at 0.08 times its TVL, compared to Ethereum’s 0.12 times. This suggests the asset may be relatively undervalued based on its underlying ecosystem activity.
However, the asset faces potential risks from regulatory scrutiny targeting Binance and broader macroeconomic factors that could weigh on the cryptocurrency market.