Binance Coin may not be the hottest coin in the market as per social trends but it did manage to pull off a better performance than those with higher social recognition. Can it continue the same in 2022 though?
Binance Coin > Bitcoin, Ethereum
During the last week of December, Binance Coin, of all the assets, stood out for being the one with the highest inflows for the week. Bringing in $20.2 million, BNB managed to outperform the top coins by a mile.
However, it still couldn’t manage to keep the net flows positive as the altcoin king Ethereum led the outflows with $61.3 million which caused the last week of 2021 to end with $32 million in outflows.
With the new week underway, however, it will be a while before we can know if Binance Coin managed to bring that same strength into 2022 as well. Right now nothing can be said with surety since the asset’s performance hasn’t been exceptionally bullish.
But the minimal fluctuation in price has kept Binance from losing too much which is why in over 2 months, the coin has lost just some 21.2% since its ATH.
This is far less of a drop when compared to other top altcoins such as Cardano and Solana which have lost over 55% and 33% respectively.
Additionally, investors have maintained their status of HODLing and/or accumulation owing to the optimism of recovery. Even that might slowly fade away if the price doesn’t go back up, since it won’t be long before investors turn bearish and maybe even sell their holdings.
The new investors who are looking to enter the market by “buying the dip” might be lured by the fact that BNB has not realized losses in over 2 months.
But at the same time, they must remember that the current market conditions combined with the negative risk-adjusted returns could put them in losses.
Thus, it would be wise to wait and observe the performance of BNB by next week and if a recovery is on the charts by then, one can happily jump in.