The Binance Smart Chain ecosystem went into the red on Thursday. The BNB coin and several meme coins that recently gained popularity began to decline after a brief spike in speculative activity earlier in the week.
According to GMGN, BNB dropped by 3.4%, falling to $1,270 and giving back its recent gains above $1,300.
The meme coin Binance Life, which became the target of retail speculation, lost about 9.5% in a day and is now trading at $0.3181. PALU — a token associated with the Chinese Binance community — fell even more sharply. Its price plummeted by more than 35%, and its market cap dropped to $61.5 million.
A sharp collapse of BSC tokens replaced the hype wave
Two days ago, capital poured into tokens based on Binance Smart Chain, sparking a rapid rise in illiquid assets. But the market quickly overheated — technical indicators showed overbought conditions, and traders began to take profits.
The drop in BNB occurred shortly after record activity on the network. In September, the number of active addresses exceeded 60 million, and the announcement of the Builder Fund for $1 billion added optimism at the start of the month.
BNB price dynamics. Source: CoinGecko
Special attention was given to Binance Life — a satirical meme coin that mocks the endless routine of crypto trading. Its market cap grew from less than $100,000 to $190 million in just a few days, thanks to community hype and trading on PancakeSwap. Early investors managed to lock in profits of 2000x before a wave of sell-offs hit the market.
The token with Binance mascot first soared, then crashed sharply
The PALU token, inspired by the yellow emoji mascot from Binance’s Chinese account on X, showed even wilder swings. Just a few days ago, it set a high at $0.1204, but after massive profit-taking, it lost more than a third of its value.
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Interest in PALU was fueled by its recent listing on Binance Alpha, as well as its connection to the company’s plans to integrate AI and DeFi. But the lack of real use cases made the token vulnerable to a sharp correction.
Nevertheless, retail interest remains. In the last 24 hours alone, Binance Life traded over $232 million.
Meme coins continue to shake up the BSC market
Before the drop, the market saw one of the loudest earning stories in recent times.
According to Lookonchain, one trader turned $3,500 into $7.9 million in just three days, getting into Binance Life while its market cap was below $100,000. He partially took profits but still holds 18.5 million tokens, remaining the project’s largest holder.
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Such stories are not uncommon on Binance Smart Chain — meme coins have long become a hallmark of this ecosystem. The network positions itself as a fast and cheap tool for retail investors, and minimal fees and growing incentives for developers support interest in experimental tokens and speculative activity.
