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Binance Coin [BNB] open interest surges, funding rate declines; still…

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BNB news

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  • BNB’s open interest increased as traders turned to the coin for potential profits
  • The funding rate declined across all exchanges as BNB risked a price reversal from away from the weekly greens registered

Binance Coin [BNB] enjoyed some undivided attention from traders as its open interest surged following a 13.90% seven-day price increase. According to Coinalyze, the open interest of the exchange coin increased 9.35% in the last 24 hours, driving it up to $294.2 million on the Binance platform.

It was about $328 million across all exchanges. This implied that there were numerous contracts open in a bid to profit from BNB.

BNB open interest

Source: Coinalyze

Read BNB’s Price Prediction 2023-2024

However, the case was different with the funding rate. According to the futures market data aggregator, BNB’s funding rate was mostly negative. The funding rate helps to understand market sentiment and possible price trends. In the current condition, with less capital deployed, BNB could likely ride along the bearish lines.

As per the chart below, traders’ short-position might be the order of the day. The liquidation data revealed that longs were already “donating” to their opposing counterparts.

BNB funding rate in the derivates market

Source: Coinalyze

Weekly gains and impending happenings 

Despite the rivalry between the funding rate and open interest, the BNB chain could still sustain its weekly records. In a tweet dated 25 November tweet, the handle of BNB Chain confirmed that the platform had registered 3.18 million average daily transactions. This implied that a good number of addresses had interacted with the network. 

However, the uptick gathered in the last seven days could not drive investors’ profit to significant levels. According to Santiment, the Market Value to Realized Value (MVRV) ratio had decreased to 13.05% at the time of this writing. As of 20 November, the MVRV ratio stood at a high of 269%.

This position meant that investors’ profits were far from hitting double of their holdings. Still, it might be considered an undervalued state since the ratio was not negative.

As for its development activity, the on-chain analytic platform revealed that it was in the same position since 22 November. Thus, there was a minimal need for upgrades on the BNB chain. Regardless, it did not mean that there was decreased commitment to the project, especially as the same metrics increased to 0.02 a few days back.

BNB development activity and MVRV

Source: Santiment

Binance whales would rather hold on

Further assessment of BNB’s on-chain position revealed that the exchange coin whales preferred to not go all in accumulation. Based on Santiment’s data, there were only seven whale transactions worth $100,000 or more.

This number wasn’t enough to drive a rally. In fact, a price reversal could be in the works. This was because BNB, trading at $311, lost 0.08% of its value in the past hour at press time.

BNB price, also showing whale transactions

Source: Santiment


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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