BNB, the native token of the BNB Chain, surged to an all-time high of $723 on June 6, before stabilizing around $705 after a slight decline. This rapid increase amounted to a remarkable 19% gain in the first week of June, surpassing the average 4.2% gain seen across the broader cryptocurrency market during the same period. Traders are now scrutinizing the sustainability of this rally and the factors that could drive further price volatility upwards.

The notable surge in BNB's price occurred despite news that Binance's founder and former CEO, Changpeng Zhao, began serving a prison sentence in a California federal prison on June 1 for money laundering charges. However, Zhao's absence from Binance's future plans has not appeared to negatively impact BNB's performance.

Currently, BNB boasts a market capitalization of $108 billion, positioning it 37% ahead of its competitor Solana, which is valued at $79 billion. The valuation of BNB is partially attributed to discounts on Binance services and exclusive access to offerings like Binance Launchpad. Comparing BNB Chain's activity to Ethereum, the leader in decentralized applications (DApps), may provide insights into the sustainability of BNB's price above $710.

Analysts suggest that the rally in BNB may have been fueled by leveraged buying from derivative traders, amplified by Fear of Missing Out (FOMO) among retail traders. This theory is supported by the fact that BNB futures open interest surpassed $1 billion for the first time on June 6. However, data indicates that the 18% rally cannot be solely attributed to derivatives markets, suggesting a more complex interplay of factors including perpetual futures trading.

In conclusion, while BNB Chain's activity demonstrates strength, sustaining further price increases may be challenging based on current market data and trends.