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BNB Resilience: Holding Firm At $560 – What’s Next?

The price of BNB hasn’t fallen below its previous low, and it’s showing some strong signs of heading up. After a spell of moving downward, the Binance Smart Chain’s native token is aiming for an upward bounce back towards its earlier high.

Technical Indicators Point Toward Sustained Uptrend For BNB

To figure out where the BNB price might be headed next, several indicators can be used to examine the chart:

BNB

4-Hour MACD: A technical look at the MACD indicator from the 4-hour timeframe, the MACD histograms are trending above the zero line, and both the MACD line and the Signal line have crossed and are heading towards the MACD zero line, indicating a bullish trend. This can be seen in the above image.

RSI 4-hour Timeframe: The formation of the Relative Strength Index (RSI) in the below image also suggests an upward movement as the RSI signal line is seen trending above the 50% level. This indicates that buyers are still very active in the market therefore overpowering the strength of sellers.

4-hour alligator: A look at the alligator indicator from the 4-hour time frame shows that BNB is trading above the alligator lines as the alligator lip and teeth have both successfully crossed above the alligator jaw, suggesting that the price might be starting a new rally.

BNB

At the time of writing, the price of BNB was up by 1.35% and was trading around $561 in the last 24 hours. BNB price is showing bullish signs and also forming a base above the $508.1 support level. Also, the price is trading above the bearish trend line and below the 100 Simple Moving Average (SMA) on the 4-hour chart.

Final Thoughts

From the previous downward movement, the price of BNB has managed to create one major resistance level of $635 and one major support level of $508. Currently, BNB is moving toward this resistance level and if it breaks above this level, the price might go even further to create a new high. 

On the other hand, if the price fails to break above this major resistance, it will reverse and start a downward movement toward its previous support and if it manages to break below this support level, the price might move further downward thereby starting a new downward trend.

BNB

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BNB Barrels Past $400, As Binance TVL Nears $5 Billion – Details

Recently, the Binance Smart Chain emerged as the top Layer 1 platform with the biggest number of BNB users. There has also been a noticeable increase in its volume.

The optimistic outlook for the cryptocurrency market as a whole has also contributed to BNB’s success. With a market capitalization of around $2.30 trillion, Bitcoin’s latest ascent beyond $63,000 suggests that investor confidence has increased.

BNB Approaches $5 Billion TVL

Total Value Locked (TVL) for BNB Chain increased steadily this year and is currently close to $5 billion. It’s crucial to remember that the current upward trend in BNB is what’s responsible for the TVL spike.

According to data from DefiLlama, this represents a notable rise over the $3.50 billion reported at the beginning of the year and illustrates the growing presence of decentralized finance (DeFi) protocols on the chain.

With 425 million unique users, BNB chain held the top spot at the time of publication, according to Crypto Rank data, which displayed the total number of unique users across the top 15 networks.

On-chain volume on BNB Chain saw a notable spike this week, peaking at about $1.4 billion. According to DefiLlama, this is the greatest volume seen in 2024 and the second-highest day volume on the chain in more than a year. An increase in activity suggests that users are more engaged and that the ecosystem has room to develop.

BNB Breaches $400 Level

The price of BNB has recently increased to levels not seen in months, which is quite notable. The coin has moved into previously unobserved price ranges as of April 2022.

The 24-hour period chart analysis showed that BNB ended trading on a high note. Though there has been a slight decline of less than 1% as of this writing, BNB is still trading at $405.

The excitement around the web3 game project Portal’s airdrop farming campaign is partly responsible for the recent increase in BNB’s price. Users were able to take part in Portal’s PORTAL token airdrop thanks to Binance’s Launchpool integration, which increased interest and engagement in the BNB Chain ecosystem.

Meanwhile, bulls will retake control and be ready to challenge the market’s upper resistance level of $420 this week if the price moves over the resistance level of $401. If the price stays there, the BNB coin will be ready to try testing its upper limit of $435 in the following weeks.

The notable variation in pricing is observed despite Binance being subjected to one of the most serious criminal penalties in the history of the United States. Following the consent of a judge, the exchange reached a plea agreement amounting to $4.3 billion, which pertained to allegations associated with violations of anti-money laundering regulations and penalties.

Featured image from Pexels, chart from TradingView

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Binance Smart Chain (BSC) Market Cap Hits New Milestone, Registering 48% QoQ Surge

Binance Smart Chain (BSC) has demonstrated notable growth in key metrics during the fourth quarter (Q4) of 2023, as highlighted in a comprehensive report by Messari. 

As the third-largest Layer-1 protocol by market capitalization, BSC experienced positive progress across its financial indicators, signaling a productive quarter for the blockchain ecosystem.

Binance Smart Chain Record-Breaking Transactions

The report reveals that BSC’s market capitalization witnessed a 48% quarter-over-quarter (QoQ) surge. This surge reflects renewed interest in BNB (Binance Coin), the native asset of BSC, following two consecutive quarters of decline.

Moreover, BSC’s revenue measured in USD experienced a significant QoQ growth of 27%. This revenue surge, amounting to over $39 million in Q4, indicates increased activity on the protocol and the implementation of various initiatives throughout the year.

Binance Smart Chain

Gas fees burned in BNB, a metric reflecting network activity, also saw a notable QoQ increase of 21%. The rising number of transactions and smart contract interactions contributed to increased gas fees burned, further reinforcing the Binance Smart Chain ecosystem.

In addition to financial metrics, BSC showcased impressive improvements in other areas. The number of active validators increased by 25% QoQ, highlighting growing trust and participation in securing the network. BSC’s commitment to decentralization was evident as the protocol experienced a 54% YoY increase in active validators.

According to Messari, throughout 2023, BSC demonstrated its ability to handle heightened activity while simultaneously reducing costs for users. Daily transactions on the network witnessed a 35% year-over-year (YoY) increase and a 30% QoQ surge, averaging around 4.6 million transactions per day in Q4. 

These spikes in transaction volume were attributed to inscription-related activity, with BSC processing a record-breaking 32 million transactions on December 7, 2023.

BSC’s DeFi Ecosystem Reaches $4.6 Billion TVL

Despite a decline in daily average active addresses and new unique addresses, primarily due to users exploring alternative chains like opBNB, BSC’s on-chain activity remained robust. 

The protocol’s ecosystem of stablecoins, dominated by Tether’s USDT, reached a total value locked (TVL) of $4.6 billion in Q4, showcasing a 33% QoQ increase in Decentralized Finance (DeFi) TVL.

Binance Smart Chain

While Non-Fungible Token (NFT)- related metrics declined in Q4, Binance Smart Chain and Ethereum (ETH) witnessed a resurgence in activity toward the end of the quarter, indicating a potential upward trend in the next market cycle.

Binance Smart Chain

In addition to BSC’s growth, BNB also experienced notable price movements. After a sharp drop, BNB surged from $238 to reach the $338 level. However, it later retraced to $287 following a correction. 

In the past 24 hours, BNB has recorded a growth of 3.7%, pushing its current trading price above $302. 

Featured image from Shutterstock, chart from TradingView.com 

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How To Buy, Sell, And Trade Tokens On The BSC Network

The captivating Binance Smart Chain (BSC) Network has morphed into a powerful force within the blockchain ecosystem, offering various benefits and opportunities for users and developers alike. Introduced by Binance, a top player in the global cryptocurrency exchange realm, BSC provides a robust and efficient infrastructure for decentralized applications (dApps) and digital asset transactions.

The key advantage of the BSC network is its high-speed and low-cost transactions. With its standout consensus mechanism, BSC achieves fast block confirmations, enabling quick and seamless transfers of digital assets. This scalability advantage makes BSC an attractive choice for users who value speed and efficiency in their transactions.

Advantages Of The Binance Smart Chain (BSC) Network

The Binance Smart Chain (BSC) offers several advantages that have contributed to its popularity and growth within the blockchain ecosystem. Here are some key advantages of the BSC network:

High Speed and Low Transaction Fees: BSC is known for its fast block confirmations, which result in quick transaction processing times. This speed is achieved through its unique consensus mechanism. Additionally, BSC’s low transaction fees have made it a preferred platform for developers and users.

Compared to other popular blockchain networks, BSC offers significantly lower transaction costs, making it more accessible for individuals and businesses of all sizes. This cost-effective system has aided the exponential growth of decentralized finance (DeFi) applications on the BSC network by providing a wide range of financial services to users around the world.

Scalability: BSC has been designed to handle high transaction volumes, allowing for the smooth and efficient execution of decentralized applications (dApps). This advantage enables BSC to accommodate the growing demands of users and developers without compromising performance.

Compatibility with Ethereum: The compatibility of BSC with the Ethereum Virtual Machine (EVM) has made it easy for developers to port their existing Ethereum-based projects to BSC, expanding the pool of available applications.

This opens up a world of possibilities, as it expands the range of applications available on BSC, offering users a greater selection of innovative and diverse decentralized applications to choose from. This interoperability has fostered innovation and attracted a diverse range of projects, including decentralized exchanges, yield farming platforms, and NFT marketplaces.

The close integration between BSC and the Binance exchange also creates a host of advantages for users. The seamless connection between these two platforms facilitates effortless token swaps and transfers.

Related Reading: Celestia Network: How To Stake TIA And Position For 5-Figure Airdrops
This integration enhances overall liquidity, ensuring that users have quick and convenient access to a diverse range of digital assets. Whether it’s trading, diversifying portfolios, or exploring new investment opportunities, the close relationship between BSC and Binance empowers users with a seamless and detailed experience in the world of digital assets.

Trading On The BSC Network

Decentralized exchanges (DEXs) on the Binance Smart Chain (BSC) network provide traders with a range of features and opportunities to enhance their trading experience. Here’s an elaboration on the features of DEXs on BSC:

Automated Market Makers (AMM): DEXs on BSC leverage AMM protocols to enable token swaps. AMM algorithms automatically set token prices based on supply and demand dynamics within liquidity pools. This feature eliminates the need for traditional order books and enables continuous liquidity, allowing traders to execute swift and efficient trades.

Yield Farming: Yield farming is a popular practice in the decentralized finance (DeFi) space, and many BSC DEXs offer yield farming opportunities where traders provide liquidity to specific token pairs by depositing their assets into smart contract-based liquidity pools. In return, they receive liquidity provider (LP) tokens, which represent their share of the pool.

Traders can then stake these LP tokens in yield farming programs to earn additional tokens or rewards. Yield farming enables traders to earn passive income by utilizing their idle assets effectively.

Liquidity Pools: These are fundamental components of DEXs on BSC which consist of pairs of tokens that are used for trading. Traders can contribute their assets to these pools and become liquidity providers.

By providing liquidity, traders help ensure that there is sufficient liquidity available for trading. In return for their contribution, liquidity providers earn a portion of the trading fees generated by the DEX. This incentivizes traders to provide liquidity, as they can earn fees from the trading activity in the pool.

Token Trading: DEXs on BSC offer traders the ability to trade a wide range of tokens. These tokens can include native tokens of projects built on the BSC network, as well as tokens that have been bridged from other blockchains, including Ethereum.

Traders have access to various trading pairs, allowing them to buy and sell tokens directly from their wallets. The availability of diverse tokens and trading pairs provides traders with abundant opportunities to explore various markets and investment opportunities.

Additionally, the  Binance Smart Chain (BSC) is a modified Ethereum fork which simply means that it is compatible with the Ethereum network. Both of these blockchain networks have similar infrastructure, which is why they have the same address in your wallet.

This is to ensure that your funds are not permanently lost when you send them via the wrong network. Simply put, if you send a token to your ETH via the BSC network, the funds will still be on the blockchain and you’ll be able to retrieve them.

How To Get Started On The BSC Network

To buy and sell tokens on the Binance Smart Chain (BSC) network, you will first need to get a Metamask wallet and fund it with BNB tokens. MetaMask is a popular browser extension wallet commonly used for interacting with blockchain networks like Ethereum and Binance Smart Chain (BSC). It is available as a browser extension for popular browsers such as Google Chrome.

Ensure your Metamask Wallet has been added to your browser as an extension by clicking on the “Add to Chrome” icon on the top right as shown below:
BSC Network Metamask

Once installed and set up, MetaMask allows users to manage their cryptocurrency wallets, interact with decentralized applications (DApps), and securely execute transactions on supported blockchain networks directly from their browsers. (Make sure to write down your seed phrase on a piece of paper and keep it safe. Do not store it online).

Next, add the BSC network to your Metamask wallet by following the instructions provided on the Metemask website here.

Getting BNB Tokens To Trade On The BSC Network

Once that is done, you need to fund your wallet with BNB before you can begin trading on the BSC network. You can buy BNB on centralized exchanges such as Binance, copy your wallet address from Metamask, and then send the BNB from Binance to your Metamask wallet. 

You can also purchase BNB directly within the Metamask wallet using traditional payment methods such as credit or debit cards, PayPal, bank transfer, CashApp, etc.

Just click on the “Buy/Sell” button within Metamask which will open up the interface. Here, you can put how much BNB you want to buy in terms of dollar terms, pick your payment method, and then click “Buy”.

Note that to buy crypto directly within Metamask, you will need to provide info such as your country and state. However, it is a straightforward process that only takes a minute.

Metamask buy BNB

It’ll only take a couple of minutes at most for your BNB to arrive in your wallet. Once the BNB arrives, you are all set to begin trading tokens on the BSC network. So head over to Pancakeswap to get started on your trading journey.

How To Trade Tokens On The BSC Network Using PancakeSwap

PancakeSwap is the leading decentralized exchange on the BSC network. Here, users are able to buy and sell a large range of tokens, and it is a straightforward process.

Make sure you are on the correct Pancakeswap website to prevent your wallet from being drained. The next step is clicking on the “Connect Wallet” option on Pancakeswap at the top right corner as illustrated below:

Pancakeswap

Connect to your preferred wallet as shown below. (In this case, it’s Metamask):

BSC network

Once connected, switch Metamask to the BSC network. (If you’re already on the BSC network, you do not need to switch):

switch network

With MetaMask connected to the BSC network, go to PancakeSwap, then you can start trading on the BSC network using PancakeSwap. Search for the token you want to purchase using the name or the contract address. 

Set slippage to auto to avoid having to manually set it with each swap. Once done, pick how much BNB (at the top) you want to convert to the new token (at the bottom), click on “Swap,” and confirm the transaction in your Metamask wallet.

Once the transaction is confirmed, the tokens will be sent to your wallet. To convert your tokens back into BNB, repeat this process by putting the new token at the top and picking BNB at the bottom. Click Swap and BNB will be sent to your wallet.

Tokens

Buying And Selling Tokens With The Metamask Wallet

BSC Network users can also buy and sell tokens using the Metamask extension wallet already connected to the BSC network. 

To do this, make sure you’re connected to the BSC network and have BNB to swap and pay for gas fees. Then navigate to the “Swap” button as shown below. This will take you to the Swap interface inside Metamask.

Metamask wallet

Here, you can also search for tokens using the name or the contract address, just like on Pancakeswap. Input the amount of BNB you want to swap, confirm that you have the correct token, and then click “Swap.” Once the transaction is confirmed, the tokens you just bought will be sent to your wallet.

Tracking Token Prices On The BSC Network

BSC network users can leverage on-chain tools such as Dextools to access detailed market insights about a particular token such as price and contract information to enable them to make informed trading decisions.

Charts

 Dextools offers a range of features that are particularly beneficial for users on the BSC network. One notable feature is the ability to check charts, providing real-time and historical price data for various tokens. These charts enable users to analyze price trends, trading volumes, and other relevant metrics, helping them identify potential entry or exit points for their trades, as shown below:

Dextools BSC network

In addition to charting capabilities, Dextools provides a “Contract Audit” feature that is especially valuable for BSC users. This feature allows users to check the audit score of a smart contract before investing in a token. Audits assess the security and reliability of a contract’s code, highlighting potential vulnerabilities or risks. 

Contract checking

By accessing the audit score through Dextools, users can evaluate the level of trustworthiness and credibility of a token’s underlying smart contract, minimizing the chances of falling victim to scams or vulnerabilities.

Conclusion

The BSC network has become popular within the blockchain ecosystem due to its advantages and has attracted a diverse range of projects and users. BSC’s compatibility with Ethereum facilitates seamless token transfers between the two networks, enhances diversification of development and usage, and promotes collaboration within the broader blockchain ecosystem. 

Additionally, it offers interoperability, allowing developers to easily port existing Ethereum-based applications and assets to BSC. This compatibility grants access to the extensive Ethereum ecosystem, enabling users to leverage the infrastructure and liquidity of Ethereum while benefiting from BSC’s faster transactions and lower fees. 

BSC’s combination of interoperability, accessibility to liquidity, and enhanced transaction efficiency makes the BSC network a compelling choice for both developers and users, solidifying its position as a prominent player in the evolving blockchain landscape.

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Crypto Assets Flow From Ethereum To BSC, Are Users Escaping High Gas Fees?

There is a substantial flow of assets from Ethereum to the Binance Smart Chain (BSC), according to data from Cryptoflows.

Migration From Ethereum To BSC

The shift to move assets from the legacy smart contracting network could be driven by the desire to escape high gas fees.

For every transaction executed on public ledgers like Ethereum and BSC, a fee is paid. In Ethereum, gas fees remain higher, especially for users deploying smart contracts.

Analysis of the latest gas fee trends on Etherscan indicates shows that network fees have been fluctuating, and generally higher in the past weeks. As of May 17, Gas fees stood at 43 gwei or roughly $1.59 for simple transfers.

Meanwhile, BscScan data shows that users have to pay 3 gwei for transfers, regardless of the urgency of the transaction.

The difference in gas fees between Ethereum and BSC, when analyzed in USD terms, is apparent and could explain why users are seeking alternatives, moving assets from Ethereum to alternative blockchains like BSC that offer lower Gas fees.

Is PEPE FOMO The Reason?

The recent surge in Ethereum gas fees can be attributed, in part, to the hype surrounding the PEPE, a meme token. With PEPE spurring demand and forcing on-chain activity higher, Ethereum gas fees rose in tandem. According to Y-Charts, Gas fees on Ethereum increased from $43 on April 22 to $155 as of May 5, 2023.

The unprecedented demand for PEPE due to the fear of missing out (FOMO) coincided with the near-exponential increase of fees from the last week of April to early May.

This spike highlighted the scalability challenges faced by Ethereum during periods of increased activity.

Fluctuating Gas fees, depending on network activity, is primarily one of the reasons why developers are looking to integrate long-lasting solutions, including on-chain and off-chain scaling methods.

Ethereum Price On May 17| Source: ETHUSDT On Binance, TradingView

According to the roadmap, Ethereum will introduce Sharding, where the network will be broken into portions called “shards”.

Shards are sub-networks that will form part of the whole of the Ethereum blockchain. Each Shard will process transactions independently but remain connected to other shards. In this system, Ethereum developers hope to scale transaction processing throughput on-chain, lowering fees. Shards remain an idea and are being studied.

Given this, layer-2 scaling options are gaining traction as a means of improving scalability by re-routing transactions to an off-chain platform, relieving the underlying blockchain, and reducing processing fees.

L2Beat currently shows that there are over 20 layer-2 scaling options aiming to scale the mainnet. Arbitrum and Optimism, two of the most active general-purpose platforms for deploying smart contracts and decentralized applications are the most active.  The two, Optimism and Arbitrum, control over $7.5 billion of assets as measured by total value locked (TVL).

Optimism will release “bedrock,” via a hard fork in early June 2023. This upgrade aims to enhance scalability, improve transaction speeds, and reduce gas fees on the off-chain solution. With these improvements, Optimism hopes to carve out a larger market share, pushing its TVL higher.

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Billions Of Dollars Tokenized Bitcoin Moved To Ethereum, BSC, And Solana

More than 70% of all tokenized Bitcoin, worth over $4.3 billion, have been transferred to Ethereum, according to data from Cryptoflows.

This migration highlights a growing trend of utilizing Bitcoin within Ethereum’s decentralized finance (DeFi) ecosystem and other interesting areas.

Billions Of Bitcoin Being Tokenized

Out of the $5.75 billion worth of BTC exported from Bitcoin, over $1.44 billion found its way to the BNB Smart Chain (BSC) with more BTC tokens flowing to Avalanche, Fantom, and Solana.

Just like Ethereum, BSC, Avalanche, and other ecosystems where tokenized BTC found its way to, support smart contracting. Therein, holders can engage in DeFi, possibly earning income.

Bitcoin doesn’t support smart contracts; explaining why some holders are tokenizing their assets. Still, while there appears to be growing demand for DeFi, reading from this outflow of BTC to smart contracting platforms, total value locked (TVL) and decentralized exchange (DEX) volumes have been low and even stagnant.

Data from DefiLlama.com, a DeFi analytics platform, shows that TVL is flat and below $50 billion.

Meanwhile, DEX trading volumes have been relatively low in recent months. This phase of decreased activity could suggest a temporary slowdown in decentralized trading, mirroring the general trend of crypto prices in recent months.

With less than $2 billion of registered DEX trading volumes on May 17, there has been a notable slump in activity over the last months, especially from early 2022.

In November 2021, at the peak of the last bull cycle, DEX trading volumes, on average, stood at over $7 billion.

BTC Prices Suppressed But Coin Is A Safe Haven

While users port their BTC to smart contracting platforms, Bitcoin prices remain under pressure partly due to regulatory decisions across the world, mainly in the United States and Europe.

Bitcoin Price On May 17| Source: BTCUSDT On Binance, TradingView

On May 16, the European Union (EU) approved comprehensive crypto regulations which aim to bring transparency and oversight to the crypto industry, addressing concerns such as money laundering and investor protection.

Even in this bearish environment, Geoff Kendrick, the head of digital assets research at Standard Chartered, recently opined that Bitcoin prices could rally by as much as 70%, adding $20,000, should the United States default on its debt.

Related Reading: Bitcoin Loses Grip On $27,000 Handle Amid Debt Ceiling Concerns – Details

Although Kendrick said the probability of this default is a “low-probability, high-impact event”, his prediction has generated significant interest within the crypto and Bitcoin communities as some begin to theorize the potential impact of the world’s superpower defaulting on its debt obligations on the broader financial landscape.

Any such event would result in economic turmoil and an inevitable loss of faith in traditional financial systems that would most likely drive investors towards alternative assets, mostly cryptocurrencies.

Considering Bitcoin’s stature and setup as a safe haven, the coin, in Kendrick’s view, could benefit, subsequently posting significant gains.

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PancakeSwap (CAKE) Plummets 24% Amidst Debate Over Reduced Staking Rewards

PancakeSwap (CAKE) token holders have been on a roller coaster ride as stakers brace for reduced rewards. The community is debating a change in the token’s economic model.

Over the past week, governance token, CAKE, has suffered a continuous downward trend, dropping by 24%. Though the proposed change appears favorable to PancakeSwap, the heated debate has impacted the token’s value. 

Community Debate Over Slashed Staking Rewards

PancakeSwap is a decentralized exchange (DEX) built natively on the Binance Smart Chain (BSC). It allows users to trade cryptocurrencies, provide liquidity on trading pools, and earn rewards in the form of CAKE tokens.

Though the DEX has gained popularity recently due to its low fees, fast transactions, and innovative features, the economic proposal has brought uncertainty to its investors. According to the proposal, the developers will reduce CAKE’s inflation rate from above 20% to 3-5%.

This move is aimed at improving PancakeSwap’s “long-term health.” However, at the same time, it will lower the amount of tokens stakers can earn, leading to a decline in staking rewards. Voting for the proposal began on April 26 and is scheduled to conclude tomorrow, April 28th. 

The community has already given a thumbs up to the “aggressive reduction” of staking rewards, which would reduce more than half the number of tokens emitted.

Notably, Staking rewards are a vital component of any cryptocurrency. They incentivize token holders to keep their tokens in a platform or wallet rather than sell them on the market. Staking rewards are similar to interest earned on savings in a bank account.

PancakeSwap’s staking rewards have been a significant selling point for the project, ranging from 50% to 200% per annum, depending on the trading pool. The proposed change has sparked a debate within the community, with some arguing that reduced staking rewards will drive investors away from the project, leading to a decline in demand.

Although the proposed change aims to enhance tokenomics by reducing the dilution of CAKE’s supply, it has led to an exodus of stakers. As a result, the token’s price has dropped concurrently with the amount of CAKE unstaked, as seen in the chart below. 

Meanwhile, the tokenomics change proposed by the team on April 19 has also significantly reduced staking activity. The amount of CAKE staked fell from 1.007 billion to 677.851 million CAKE as of April 27. 

PancakeSwap staking.

CAKE Plummets 24% In A Week

The PancakeSwap (CAKE) token has experienced a sharp decline of over 24% in the past week following the proposed proposal to reduce the token’s inflation rate. CAKE has dropped by 24% in the past seven days, from a high of $3.43 on April 20 to a low of $27.57 on April 27. 

PancakeSwap (CAKE) price on TradingView

The token’s market cap has also dropped from a high of $636 million to a low of $506 million over the same period. The sudden drop in CAKE’s price reflects the crypto community’s perception of the proposed change. If passed, the proposed change will significantly affect the project’s stakes earnings and likely reduce the token’s demand.

Featured image from iStock, Chart from TradingView

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Binance Smart Chain User Activity Tanks, Why BNB Price Could Suffer

BNB Price has been seeing a lot of declines since Binance came under fire for the audit published by Mazars. Fear, Uncertainty and Doubt (FUD) had spread like wildfire, leading to more than $5 billion in withdrawals from the crypto exchange. Nevertheless, Binance was able to withstand the onslaught and amid all of this, activity on the Binance Smart Chain has fallen drastically, painting a bearish picture for the BNB price.

Binance Chain Activity Drops By 15%

Last week, there had been a lot of activity on the Binance Smart Chain which saw daily active addresses climb as high as 1.2 million at the start of the weekend. However, as the new week is ushered in, this metric has taken a swift beating and the number of daily active addresses has declined dramatically.

Data from YCharts show that in the last 24 hours, Binance Smart Chain active addresses were down by more than 15.70%. This showed a complete reversal in the high usage recorded between Friday and Saturday when activity on the chain had surpassed all other blockchains. Currently, the number sits at 947,414 daily active addresses on the blockchain. So from Friday to now, active addresses are down by more than 150,000. 

BNB Price

New unique addresses per day were also down during this time and are down by 15.27% in the 24-hour period. Likewise, transactions per day also took a beating, falling 15.27% during this time while transaction fees realized on the network declined by 10.86%.

Interestingly, the daily active BEP-20 addresses on the Binance Smart Chain saw the most upside for the time period with a 9.84% growth, as well as the BSC average transaction fee seeing a 6.58% rise to $0.1457 per transaction.

How Will BNB Price Respond?

At the start of the weekend when activity on the Binance Smart Chain had begun to surge, there was a notable increase in the BNB price during this time. The digital asset had clocked a local peak of $264 on Friday before active addresses had begun to lose momentum.

BNB price chart from TradingView.com

By Saturday, the more than 100,000 declines in daily active addresses were followed by a sharp drop in the price of BNB. This drop to the $220 territory showed a correlation between the activity on the blockchain and the price of the coin.

If the cryptocurrency were to keep up with this trend, then BNB’s price could see a possible decline today. However, just like the weekend, such a decline would only be temporary and a sharp recovery will expectedly follow not much later. Another 10% drop from current prices will see the digital asset revisit the $220 territory once more.

BNB is changing hands at a price of $246 at the time of this writing. It’s down 0.49% in the last day and 12.37% in the last week, according to data from Coinmarketcap.