BNB Chain’s popularity soars: Is this the start of something new?

Journalist

Posted: November 20, 2023

• BNB Chain’s network activity dropped in the last week.
• BNB’s price moved marginally, but a few indicators were bullish. 

Binance Coin [BNB] failed to lift its price, unlike other cryptos, over the last seven days, as its value moved only marginally. But despite the sluggish price action, BNB managed to become the coin of the day on the 19th of November.

In fact, after a spike, the blockchain’s network activity witnessed a drop as well. 

BNB Chain’s network activity is dropping

As per BNB Chain’s weekly report, released on the 20th of November, the ecosystem boasted of 3.10 million weekly average users with 18.91 million transactions over the past week.

Here’s a quick look at BNB Chain’s Key Metrics from this past week! 😤

Which of these metrics is due for the biggest expansion in 2024? Let us know in the comments ⤵️ pic.twitter.com/IIoAiTK6iX

— BNB Chain (@BNBCHAIN) November 19, 2023

The blockchain’s daily average users stood at 965k, with an average daily transaction count of 3.16 million. At first glance, these datasets looked promising.

But when AMBCrypto checked Artemis’ data, we found that BNB Chain’s Daily Active Addresses actually registered a decline last week. After a massive spike on the 17th of November, the blockchain’s Daily Transactions plummeted a swell. 

Source: Artemis

BNB’s price action also took a backseat in this time frame. According to CoinMarketCap, BNB’s price only moved up by 0.6% in the past seven days. In the last 24 hours, BNB’s price went up by 0.8%, which was a marginal movement.

At the time of writing, it was trading at $246.50 with a market capitalization of over $37 billion.

It was surprising to note that despite the slow-moving price action, LunarCrush’s data revealed that in terms of social activity, BNB was the coin of the day on the 19th of November.

Moreover, BNB had a social dominance of over 7% with a social volume rank of 27 among 4504 cryptos. Thanks to the uptick in these metrics, BNB’s AltRank hit 108 and its Galaxy Score touched 48. This also suggested a price uptick in the coming days.

Should investors expect a BNB Chain rally?

To better understand the scenario, AMBCrypto took a look at BNB’s daily chart. Notably, the Bollinger Bands revealed that BNB had entered a less volatile zone as of press time. The MACD also displayed a bearish crossover, minimizing the chances of a price uptick.

Source: TradingView

Read BNB Chain’s [BNB] Price Prediction 2023-24

Nonetheless, the Chaikin Money Flow (CMF) registered an uptick, giving hope for a price uptick. Additionally, AMBCrypto found that while BNB’s price went sideways, its Open Interest dropped sharply.

Whenever Open Interest drops, the chances of a trend reversal increase. 

Source: Coinglass