Daily active users on the BNB chain eclipsed other popular chains.
The number of dApps integrated in BNB was the highest of all chains.

BinanceChains [BNB] network growth continued to record impressive numbers. This is evident from a tweet from Token Terminal on January 20, daily active users on the chain reached nearly 778,000. This was more than the combined value of the next best artists on the list – Ethereum [ETH] and Polygon [MATIC].

Read Binance Coins [BNB] Price Forecast 2023-24

Additional data indicated that daily active users for BNB are up 10% over the past six months, at the height of the crypto bear market. Conversely, ETH users have plummeted by 14% over the same period.

BNB price trajectory may dampen mood

On the daily time frame, BNB broke out of the range on Jan. 4 to begin its bullish run in which it gained 22%. However, it has faced stiff resistance at $303. BNB crossed this ceiling in November 2022, but was rejected soon after.

The Relative Strength Index (RSI) steadily dropped out of the overbought zone, implying that sellers were able to control the market. The reading of the Moving Average Convergence Divergence (MACD) showed that a bearish crossover could be ahead, which could weaken buying activity.

Source: BNB/USD trade view

dApp activity is promising, NFTs not so much!

On-chain data from Santiment implied that the network was profitable for BNB holders due to its high MVRV ratio. However, in pursuit of higher profits, traders’ willingness to sell could increase, which could trigger a price correction.

Whale interest peaked monthly on Jan. 20, suggesting that BNB’s lucrativeness was not lost on major addresses. On the other hand, NFT’s sales volume has plummeted over the past two days up to the time of going to press.

Source: Sentiment

The appeal of the BNB chain is also reflected in the dApp activity. According to data from Dapp radarled the BNB chain other blockchains in the total number of integrated dApps in 2022, accounting for 36.7% of the market share.

Source: DappRadar

How much are 1,10,100 BNBs worth today?

On January 17 Binance announced the completion of the 22nd BNB burn event, taking over two million tokens out of circulation. More than 44 million tokens have been burned to date, according to data from BNBBurn.info.

As part of the wider program, more than 100 million BNB, or half of the total supply, was intended to be taken out of circulation by the burning process, which would put deflationary pressure on the token and increase its value in the long run.

This post BNB Chain records solid network growth; but why should investors be wary?

was published first on https://ambcrypto.com/bnb-chain-records-solid-network-growth-but-why-should-investors-stay-wary/


Write A Comment