Binance has announced a $283 million payout following recent volatility that tested the resilience of major assets. While many tokens struggled to recover, Binance Coin (BNB) emerged as one of the strongest performers, rebounding 14% on October 12 after a sharp 12% pullback.
Market Recovery and Investor Reactions
BNB’s recovery placed it just 3.5% below its all-time high, underscoring its relative strength amid uncertainty. It is also on track to post a fourth consecutive monthly gain, with a 28% return so far this quarter. However, the rally has raised questions among analysts and traders who suspect the compensation plan could be a strategic move to ease criticism following the market disruption.
During the sell-off, Binance managed to maintain liquidity while assets like USDe, BNSOL, and WBETH briefly lost their pegs. The quick rollout of the compensation package has sparked debate over whether the event reflected technical issues or market manipulation.
On events of last Friday to be absolutely clear:
i) Ethena’s mint and redeem function had zero downtime and was processing the largest number of withdrawals in its lifetime – more than $1b in a few hours and $2b in a 24hr period with zero issues.
ii) Primary liquidity venues…
— G | Ethena (@gdog97_) October 12, 2025
Binance’s Response and On-Chain Metrics
Binance founder CZ addressed the speculation directly, stating that neither he nor any affiliated entities had traded BNB during the volatility. He emphasized that BNB’s growth is driven by its community and builders, not external market making, and highlighted the token’s deflationary design.
Data from BNB Smart Chain (BSC) supports strong network performance, recording 31 million transactions with an average block size of 195k — close to its all-time high of 32.68 million. Total value locked (TVL) rose to $9.21 billion, returning to levels last seen in 2022.
Outlook for BNB and Binance
BNB’s resilience appears supported by tangible on-chain activity rather than speculative momentum. Despite the scrutiny, investor sentiment remains largely stable. As the quarter continues, analysts are watching whether Binance’s transparency and compensation measures strengthen long-term trust or simply mark a tactical response to market pressure.
