BNB (CRYPTO:BNB), the flagship cryptocurrency of the Binance ecosystem, has seen a notable 12% increase in its value over the past week, reaching a peak of $620 and narrowing the market value gap with Ether (CRYPTO:ETH), amid a general uptrend in the cryptocurrency market driven by Bitcoin (CRYPTO:BTC) ETF investments.

Despite BNB's impressive gains, concerns about potential overextension have emerged, highlighted by ambiguous on-chain data from the BNB Chain and contrasting trends in cryptocurrency ETF inflows and outflows, particularly the $890 million net outflow from Bitcoin ETFs in the week ending March 23.

The Grayscale GBTC fund's recent stabilization, with significantly reduced outflows, contrasts with the broader market's fluctuations and suggests a more complex investor sentiment within the digital asset space, possibly influencing BNB's future performance.

BNB's rapid ascent in the first half of March, which saw a 61.7% price increase and a peak market capitalization of $96.4 billion, was tempered by a slight pullback from its high of $645, amid declining DeFi activity on the BNB Chain as evidenced by a 55% drop in TVL from its peak.