BNB/ETH Rises 7% — Could BNB Outperform Other L1s in Q1?
Binance Coin (BNB) is showing relative strength vs. Ethereum (ETH) early in Q1 2026: the BNB/ETH pair is up ~7.3% while ETH is roughly 1.5× deeper in losses versus BNB. After a Q4 2025 period where BNB outperformed (BNB/ETH rose ~19%), on-chain metrics point to continued liquidity and activity on Binance Smart Chain (BSC). Messari reported Q4 2025 average transactions rose 30.4% to 17.3 million and active addresses climbed 13.3% to 2.6 million. Stablecoin supply on BSC grew (USDT $9.0B up 12.4% QoQ; USDC $1.3B up 23.1% QoQ) and BSC’s RWA value jumped to $2B (up 228% QoQ), making it the second-largest RWA network after Ethereum. DeFiLlama shows BNB’s stablecoin market cap is up 2.5% in Q1 and RWA value is up 5% month-to-date to >$2.15B. The article argues that these on-chain liquidity flows — not just speculative rotation — may be driving BNB’s outperformance versus ETH and other L1s, suggesting BNB could repeat its Q4 2025-style outperformance by end of Q1 2026. Key figures: BNB down 28% YTD (2026), BNB/ETH +7.29% in Q1, Q4 2025 transactions +30.4% (17.3M), active addresses +13.3% (2.6M), BSC RWA $2B (+228% QoQ), BNB RWA >$2.15B (M/M +5%).
Bullish
The article points to on-chain liquidity growth and measurable metrics favoring BNB — rising transactions, active addresses, higher stablecoin supply and expanding RWA — while BNB/ETH has already shown a notable relative gain. For traders, on-chain liquidity and stablecoin inflows are meaningful signals: they support sustained demand and reduce the likelihood that price moves are purely speculative. Historically, BNB’s Q4 2025 outperformance coincided with similar on-chain strength and produced a multi-week relative rally vs ETH. Short-term: expect continued relative strength in BNB vs ETH and other L1s while stablecoin and RWA inflows persist; price could attract momentum traders and rotation flows, increasing volatility but with upward bias. Long-term: if on-chain growth (transactions, active addresses, RWA) is durable, BNB could sustain outperformance, but risks remain — broader market downturns, regulatory news, or shifts of liquidity back to Ethereum/other L1s could reverse the trend. Traders should monitor BNB/ETH ratio, stablecoin balances on BSC, active addresses, and RWA flows to time entries and manage risk. Consider smaller position sizes or hedges (e.g., short ETH exposure) if seeking pure relative-play exposure.