As a seasoned crypto investor with a knack for spotting trends and a penchant for decentralized finance (DeFi), I find the recent surge of Binance Coin (BNB) quite intriguing. The confluence of rising futures open interest, increasing Decentralized Exchange (DEX) volume, and the growth in unique active wallets on BNB Smart Chain is a compelling narrative that hints at a bullish future for this token.
The surge in Binance Coin’s price was fueled further as the futures open interest peaked at a level not seen since July 7, and this upward trend was also reinforced by a rise in trading volumes on its Decentralized Exchange (DEX).
The Binance Coin (BNB) token rose for three consecutive days, hitting a high of $583.90, its peak since July 31. This price movement coincided with a sharp rise in futures open interest. According to CoinGlass, open interest climbed to over $607 million, with significant contributions from Binance, Bybit, and BingX.
The rally also occurred alongside a surge in volume on the BNB Smart Chain. Data from DeFi Llama shows that 24-hour volume increased by 15% on Aug. 22, reaching $921 million. This growth allowed BSC to surpass Solana (SOL), whose volume dropped by 21% to $692 million.
A significant portion of BSC’s growth in trading volume can be attributed to decentralized exchange platforms such as PancakeSwap, Dodo, Woofi, and Wombat Exchange. Yet, this growth was somewhat countered by a decline in trading volume from other decentralized applications on the exchange like Thena, BabySwap, and MDEX.
Nonetheless, Solana continues to hold its position as the second most popular Decentralized Exchange (DEX) network in the market, trailing only Ethereum (ETH). Over the last week, Solana’s trading volume reached an impressive $6.3 billion, while Binance Smart Chain (BSC) recorded a volume of approximately $4.2 billion.
In the realm of Non-Fungible Tokens (NFTs), Solana has surpassed Binance Smart Chain (BSC) significantly. Over the past month, Solana recorded a staggering $79 million in NFT sales compared to BSC’s $15 million.
On August 22, the count of distinct operational wallets on BNB Smart Chain increased by 3%, reaching a total of approximately 414,000. The volume of transactions jumped by 8% to about 725,000, and the number of decentralized applications (dApps) within the ecosystem climbed to over 5,455.
A possible factor that may influence the price of BNB is the expected release of Changpeng Zhao from prison in September. This could draw in investments from active traders, as there is likely excitement and anticipation surrounding this event.
Binance Coin to find resistance at $603
After hitting a low of $400 on August 5, the BNB token has experienced a significant surge. It has managed to transform the 50-day moving average from resistance to support. Moreover, the Relative Strength Index (RSI) is now above 50, suggesting that bullish energy is driving the price movement.
As a crypto investor, I know that for this rally to continue, we need to surpass a crucial milestone: breaking through the resistance at $603.63. This level is significant because it matches the peak reached on July 22 and also aligns with the 23.6% Fibonacci Retracement level. If we manage to break above this barrier, it could be a sign of more upward momentum, potentially aiming for the year-to-date high of $723.
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2024-08-22 16:36