Binance Coin Begins Recovery, Backed by Increased Network Activity and New Launchpad Product
Summary:
BNB Chain's native token, Binance Coin (BNB), began its recovery, increasing by 3% to cross the $300 mark on January 26, supported by growing network activity. The recent introduction of a 'dual investment' product by Binance could boost BNB's volumes. This move has coincided with an increase in value from exclusive launchpad offers and reduced trading fees. Despite a slight fall in total value locked (TVL), the value began to rise again on January 25, suggesting increased user confidence in the BNB Chain.
The proprietary cryptocurrency of BNB Chain, Binance Coin (BNB), experienced a resurgence, rising by 3% to surpass the $300 benchmark on January 26. Despite BNB's relative weakness, this recovery is fuelled by increased network activity. Binance Coin's worth is largely derived from reduced transaction costs and exclusive offers provided by Binance's launchpad.
Binance recently introduced a 'dual investment' product that could potentially boost BNB's volumes, which have surpassed $998 million over the past 24 hours. The health of a blockchain network can be measured by its performance compared to other networks.
When it comes to DApp volumes, Ethereum, along with its layer-2 scaling solutions, continues to dominate, with volumes exceeding $31.73 billion over the past week, and NFT volumes reaching $226 million. Comparatively, BNB Chain recorded $3.82 billion in DApp volumes, but its NFT volume saw an 11% increase to $864.93 million over the same period. However, in terms of unique active addresses (UAW), BNB Chain is superior, with $2 million UAWs compared to Ethereum's $359,380 UAWs.
BNB Chain recorded a 6.4% increase in addresses involved with DApps over a week. This, along with a higher transaction volume, may account for the rise in total value locked (TVL). DefiLlama data shows a consistent increase in BNB Chain's TVL since mid-December 2023, peaking at $3.73 billion on January 18. Even though this fell slightly in the following days, it began to recover on January 25, suggesting growing confidence in the blockchain.
After hitting a high of $340 on December 28, 2023, BNB's price experienced a minor downturn due to sellers capitalizing and a market-wide correction. However, a bullish flag formation on the daily chart indicates a potential continuation of the upward trend.
BNB is facing resistance around $316. If the daily close exceeds this level, it could trigger a breakout, potentially driving the price up to $450 - a rise of 48% from its current value. The pattern of upward-facing indices including the 50-day, 100-day, and 200-day EMAs and the RSI suggest a favorable market.
Conversely, bears could drive the price down to the flag's lower limit of $282, which acts as the first line of resistance. Further support could be found at the 100-day EMA of $271 and the critical support level of $250. This information is not investment advice or a recommendation and involves risk. Readers should research thoroughly before making any investment or trading decisions.
Published At
1/26/2024 10:40:00 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.