The post More losses incoming for BNB’s price? Maybe not, only if… appeared on BitcoinEthereumNews.com.

BNB’s price plummeted by 10.11%, with notable declines in on-chain activity Technical analysis revealed that BNB bulls defended the support ably Barely a month after Binance Coin [BNB] hit its all-time high of$720.67, the price fell again. This decline included a 10.11% fall between 4 and 5 July. While the coin’s price has been bearish since the month began, not many holders expected a steeper correction within such a short period. In fact, according to AMBCrypto’s own analysis, the value of the cryptocurrency tumbled due to large sell-offs in the market. User activity low, kicks BNB demand down However, there have been other reasons too. First off, there was a notable decline in on-chain activity. We found evidence of this decline after examining data from DappRadar. DappRadar is the analytics platform that provides real-time insights of things happening on-chain. According to the platform, the total Unique Active Wallets (UAWs) on BNB Chain fell by 9.14% in the last seven days. In crypto, UAWs measure user engagement and activity on a blockchain. If the metric rises, it means that there has been a hike in interaction and use of a coin. Source: DappRadar However, when the metric falls, it implies that demand for cryptocurrencies within that ecosystem is low. If this persists, it either causes consolidation or prices decline like BNB has done in recent times. Another factor affecting the coin’s decline is the Total Value Locked (TVL).  The TVL, as the name implies, is the value of assets locked on a blockchain. When the TVL climbs,  it means that market participants are depositing more assets into protocol under the chain. However, at the time of writing, the value which was over $5 billion 30 days ago, was below the threshold. Apart from the interaction with BNB (the coin), this decline…

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Filed under: News - @ July 7, 2024 12:06 am