BNB Chain’s weekly active users were 2.6 million. Activity on popular dApps declined, negatively impacting BNB and increasing selling pressure.

BNB, the native token of the Binance blockchain, performed well in two metrics: first in terms of daily active users and second in the number of transactions in the past week.

According to BNB Chain’s recent tweetat the time of writing, weekly active users were 2.60 million and average daily transactions on the BNB chain reached 2.51 million.

The high activity has helped other protocols in the BNB chain as well.

Read the BNB 2023-2024 price forecast

For example, Radiant Capital, a decentralized finance (DeFi) protocol, saw an increase in the number of daily active users on its platform following the implementation of Radiant V2 on the Binance blockchain.

Source: token terminal

Not everything that glitters

However, there are also factors that suggest that activity in the BNB chain could be reduced. Popular decentralized applications (dApps) such as PancakeSwap, 1inch Network, and ApeSwap all saw a decline in activity.

PancakeSwap saw a 21.21% drop in terms of daily active portfolios, while 1inch Network and ApeSwap saw a 28.97% and 15.32% drop, respectively.

In addition, PancakeSwap volume was also down 38.18% over the past month. At the time of writing, current volume on PancakeSwap is $2.59 billion. This drop in volume impacted the number of transactions on the dApp, which fell by 18.87% over the same period.

Source: DappRadar

Short term holders rejoice

Well, the decline in activity also affected the total value locked (TVL) for BNB, which fell from $5.02 billion to $4.76 billion over the past two months, according to DeFiLama.

All these factors also affected the BNB token. Similarly, BNB’s turnover rate, which measures the frequency with which BNB is traded between addresses, also declined. This suggests that the token is losing momentum.

Realistic or not, here is the BNB market cap in terms of BTC

The negative long/short divergence implied that BNB holders could have an opportunity to benefit from rising BNB prices in the near term. This would increase selling pressure from BNB, which could negatively affect the price.

Source: Sentiment

That said, at the time of writing, the price of BNB was $303.22 and was up 2.61% in the past 24 hours. While the recent data suggests that the daily active users of the BNB chain and the total number of transactions have been strong, there are also factors suggesting that activity on the blockchain could decrease in the future.

This post Will BNB continue to show dominance in the number of daily active users?

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