- BNB soars to new highs on the heels of robust demand from the derivatives segment.
- BNB outperforms BTC in YTD gains, and on-chain starts indicate accelerating momentum.
Binance Smart Chain’s native cryptocurrency BNB could be on the verge of clocking $800. Demand for the cryptocurrency pushed to new historic highs in the last 24 hours, paving the way for interesting price action.
According to Coinglass, BNB’s Open Interest in the Futures market peaked at $1.39 billion in the last 24 hours.
This was the highest level of Open Interest that the cryptocurrency as achieved so far in its entire history, surpassing even its performance in 2021.
Source: Coinglass
This OI surge was also accompanied by a historic surge in positive Funding Rates. This confirmed that the recent OI wave was mostly bullish.
Spot demand was also in line with the derivatives segment. However, it was notably lower in the last 24 hours compared to the level of spot demand on the 3rd of December.
For perspective, spot inflows peaked at $3.43 million in the last 24 hours, compared to $29.66 million on the 3rd of December.
This means BNB’s latest bullish activity was predominantly driven by the derivatives market. Volume data hammers down this point. The cryptocurrency registered its highest historic derivatives volume at $5.78 billion in the last 24 hours.
Source: Coinglass
BNB price action closes in on $800
BNB has been outperforming Bitcoin in numerous aspects. One notable one is that it soared to a new ATH of $793 on the 4th of December, while the former soared to a new ATH in the last 24 hours.
BNB has since retraced to a $731 press time price tag. This suggests that some profit-taking occurred in the last 24 hours. However, it has been holding on well to most of its recent gains and could soon push above $800.
source: TradingView
BNB also outperformed BTC in terms of percentage price gain. It was up by roughly 174% from its lowest price point to its highest price point so far in 2024. Meanwhile, BTC was up by 166% during the same period.
BNB chain accelerates recovery
BNB chain experienced a considerable slowdown in activity in the second half of 2023. It kicked off 2024 with a bit of recovery, but that was quickly hushed by the downside that prevailed since April.
Nevertheless, Q4 has brought forth some recovery.
Read Binance Coin’s [BNB] Price Prediction 2024–2025
BNB chain’s TVL recently pushed to $6.77 billion, its highest level since mid-April. Its stablecoin market cap soared to $6.43 billion in the last 24 hours. Its highest level in 2024.
Source: DeFiLlama
The recovery reflects the state of the network, as well as the recent demand resurgence. This suggests that improving market conditions could set the stage for more network activity and potentially new milestones down the line.
