- BNB bulls demonstrate dominance by pushing higher as most top coins face sell pressure.
- Binance smart chain yield farming demand could be one of the key reasons behind BNB’s upside.
Binance Smart Chain’s native coin BNB continues to rally even as the rest of the market struggled to maintain the bullish momentum. It has been building on the upside achieved during the weekend but there is one major drive behind its bullish extension.
The demand for yield farming on the BSC has been a key driver that has allowed BNB to extend its rally so far this week. Particularly following Binance’s announcement of Scroll’s SCR token on the Binance launchpool. Whales have reportedly been buying up BNB for Scroll yield mining.
Bitcoin and ETH experienced outflows on Tuesday, 8th October, leading to lower prices in the last 48 hours. BNB managed to push higher during the same period courtesy of the sustained demand. It traded at $580 at press time after rallying by almost 3% on Tuesday.
Source: TradingView
The bullish extension also allowed BNB to achieve over 6% upside in the last seven days. This made it the biggest gainer in the list of top 10 cryptocurrencies by market cap.
Note that BNB’s press time price was only 3.44% from the $200 target price. Why is this important? BNB struggled to push above the $200 price range in the last three months.
It did manage to do so on multiple occasions but a resurgence of sell pressure ensued each time. Will BNB pullback again or sustain its momentum above $600 this time?
Can BNB sustain the bullish momentum?
The cryptocurrency is bound to experience some sell pressure in the event that its current catalyst cools off. A look at on-chain buy and sell volume reveals that sell pressure appeared to have intensified in the last 2 days.
Source: DeFiLlama
The higher sell pressure compared to buy pressure suggests that BNB may experience more friction in its charge towards $200. However, that will depend on whether the demand will fizzle out, potentially paving the way for bears to take over.
Read Binance Coin’s [BNB] Price Prediction 2024–2025
BNB’s performance was also characterized by some network activity recovery on the BNB chain. Transactions improved from a weekly low of 3.16 million TXS on 5th October to 3.65 million transactions on 9th October.
Source: HyblockCapital
Fees on the network also demonstrated a pivot in the last 3 days after declining since the end of September. Daily fees fell to $306,000 during the weekend and have since soared to over $350,000, reflecting the recovery in network activity.
