BNB on-chain volume and Open Interest soared. Traders target prices were far from the press time value of the coin as trades in losses outweighed profits.
The volume of Binance coin [BNB], the native cryptocurrency of the Binance exchange, has reached its highest point in almost a month. According to data obtained from on-chain analytics platform Santiment, BNB’s volume was 883.77 million as of July 11.
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Eyes on the spot and derivatives
This rise in trading activity meant that the coin was attracting more and more attention. However, the renewed interest in BNB did not stop at the mere exchange between wallets.
Source: Sentiment
Instead, the derivatives market also highlighted how the growing interest in the coin was not just limited to spot trades. First, BNB open interest on exchanges has increased since July 7.
The Open Interest measures the total number of contracts participants have at the end of a trading day. Therefore, it determines the market sentiment and the force behind the prices.
A drop in this indicator indicates market liquidation, with many participants exiting their positions.
But on the BNB side, the increase in open interest means that traders were not discouraged by the coin’s price action. As a result, BNB experienced an impressive flow of money into the futures and options market.
In addition, the 24-hour active addresses of BNB followed same trend as open interest and volume. By July 6, the statistic had risen to 120.47 million.
Due to the increase in active addresses, more participants are involved in successful transactions. Therefore, BNB was able to boast a good level of usage on the underlying network.
Source: Sentiment
Losses and the goal to resist more
However, the increased participation and interest in BNB did not exactly influence the liquidation. As it went to press, Coinglass revealed that BNBs total liquidations were less than $230,000 as of July 11.
And from the chart below, shorts accounted for the majority. However, the absence of a widespread breakout suggests that most traders were long on BNB most of the time.
Source: Coinglass
Meanwhile, the coin’s on-chain transaction volume in profit was 11,200. On the other hand, the on-chain transaction volume in loss was well above 89,600. This was based on Santiment’s data from the first week of June.
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While this one metric gauge the trades that went into profit or the opposite, the big difference implies that the growth of BNB has not produced a positive result for many holders for some time.
Source: Sentiment
In the current state of the press, BNB’s renewed interest may not be the ticket that cements its position for an uptick. Ergo, the coin has also been affected by the FUD caused by Binance’s regulatory issues.
This post BNB: rising attention in the face of suppressed growth
was published first on https://ambcrypto.com/bnb-rising-attention-in-the-face-of-suppressed-growth/
