BNB’s DeFi sector continues to grow despite SEC litigation and volatility. However, the price of BNB does not recover and continues to fall.
The SEC’s lawsuit against Binance[BNB] negatively impacted both the protocol and the token. Despite this, the BNB ecosystem showed resilience and continued to maintain its dominance in the industry.
Realistic or not, here is the BNB market cap in terms of BTC
BNB’s DeFi sector remains unaffected
Despite fierce competition and market volatility, BNB Chain has secured the third position in terms of Total Value Locked (TVL) according to DefiLlama. Notably, among blockchain ecosystems with a TVL of over $100 million, BNB Chain held the third position. This further highlighted how it remained unfettered despite market uncertainty.
Source: DeFi Lama
Much of the contribution to the TVL was due to DeFi dApps on the BNB network. The top five protocols on the BNB Chain, all of which belong to the DeFi sector, together represent an impressive 69.8% of the chain’s total TVL.
Nevertheless, despite the relative stability of BNB’s TVL, there was a decline in 2023. BNB Chain’s TVL experienced a slight decrease of 3.2% year-to-date. This decline was primarily attributed to the decrease in TVL on Pancake Swap and Wombat, indicating an ongoing period of adjustment for BNB’s dApps.
While the BNB DeFi sector remained relatively unaffected by market uncertainty, the same could not be said about the price of the BNB token.
Prices continue to drop
Since May 29, the price of the BNB token is down 26.16%. The price showed multiple low highs and lower lows during this period. Moreover, it continued a bearish trend until it tested the $219.9 support level on June 10. After this, BNB was in a period of consolidation and was seen to fluctuate within the $257 and $219 levels.
The Relative Strength Index (RSI) and Chaikin Money Flow (CMF) have both been relatively high over the past few days. This was an indication that momentum and money flow were in favor of the bulls at press time.
Even though no bullish trend has been established yet, if the price manages to retest and weaken the $257 price level in the future, there is a chance of a breakout in the future.
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Source: Trade View
In addition, the Market Value to Realized Value (MVRV) ratio for BNB indicated that most addresses with BNB were loss-making. This indicated that there was less selling pressure on BNB as it went to press.
Source: Sentiment
This post BNB fails to impress despite BNB Chain reaching these milestones
was published first on https://ambcrypto.com/bnb-fails-to-impress-despite-bnb-chain-hitting-these-milestones/
