- The success of BNB has propelled it to the position of fourth biggest cryptocurrency.
- Investors are starting to wonder whether BNB’s recent outperformance will be sustainable.
After momentarily challenging the $555 support level, BNB, the native token of BNB Chain, gained 4.1% from October 10th to October 11th, indicating resilience. Despite a drop in the overall cryptocurrency market since July, the price of BNB has been quite consistent. The success of BNB has propelled it to the position of fourth biggest cryptocurrency, surpassing Solana in market value by a substantial $15 billion.
Investors are starting to wonder whether BNB’s recent outperformance will be sustainable. Since on-chain activity for the chain fell by 37% in the last week. When Base network went live, it offered lightning-fast and cheap integration with Coinbase, the top US exchange and Web3 wallet service, so traders were understandably skeptical.
Lowest Level in 4 Years
One may make the case that Binance’s services, like as discounted trading fees and exclusive access to the launchpad, contribute to BNB’s value even if they don’t directly affect BNB’s utility on the BNB Chain. Nevertheless, BNB is extensively used in the ecosystem’s decentralized apps (DApps) for trading, staking, yield farming, RWA, lending, launchpads, gaming, and derivatives markets, among other things. This is in addition to its role in network transaction fees.
Examining on-chain deposits and network fees are crucial indications to determine whether BNB Chain activity is indeed sustaining the BNB pricing.
The total value locked (TVL) of BNB Chain is now 8.1 million BNB, which is relatively unchanged from two months ago. Nevertheless, during the week ending October 7, network fees fell to their lowest level in almost four years. There was a substantial 56% drop from the previous week’s total fees of 1,880 BNB during that time period.
Highlighted Crypto News Today:
