BNB Chain tokens register gains: Here’s why
- BNB was up by over 10% last week, while its Open Interest increased.
- Positive sentiment around CAKE dropped, but its price went up by over 80%.
A closer look at the blockchain’s recent developments shed light on what was actually going on.
BNB chain tokens are on the rise
Lookonchain’s recent tweet revealed several tokens in the BNB Chain ecosystem have been on a gaining spree for over a week now. Not only popular coins like BNB and CAKE, but other coins like Trust Wallet Token, Venus, and ApolloX also made it to the list.
What are these tokens?
Who is buying these tokens? pic.twitter.com/eViRqbwDQ2
— Lookonchain (@lookonchain) November 7, 2023
The tweet also mentioned a possible reason that could have played a major role in this episode. Notably, BNB Chain is expecting its Binance Blockchain Week, which is scheduled to take place on 8 November, to stir up positive sentiment in the market around BNB Chain tokens.
However, was the hype around Binance Blockchain Week the only thing that’s causing this pump, or were there other things contributing to this price surge?
A closer look at BNB
To begin with, let’s first take a look at BNB Chain’s top token, BNB. As per CoinMarketCap, the token’s price had surged by more than 10% over the last week, which looked promising.
Not only did its value rise, but a similar trend was also noted in terms of its volume. At the time of writing, it was trading at $251.03 with a market capitalization of $38 billion.
In fact, bearish sentiment around the token dropped by over 3.8% last week. Another bullish signal was BNB’s AltRank, which registered an improvement. Regardless, BNB’s Social Engagements dropped last week.
Coinglass’ data revealed that BNB’s Funding Rate surged substantially during its price hike. This clearly indicated its popularity in the derivatives market, even when it was trading at a higher price. AMBCrypto’s analysis also revealed that BNB’s price might continue to pump.
This seemed likely as the MACD displayed a bullish upper hand in the market. The token’s Chaikin Money Flow (CMF) was also well above the neutral mark. Nonetheless, BNB’s price had touched the upper limit of the Bollinger Bands, which could be a sign of trouble.
PancakeSwap’s growth is extraordinary
While BNB’s price rose by 10%, CAKE’s price went up by a whopping 83% last week. At the time of writing, it was trading at $2.27 with a market capitalization of over $536 million.
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However, unlike BNB, CAKE’s trading volume plummeted substantially over the last 24 hours. Not only that, but its MVRV ratio dropped last week, suggesting a trend reversal.
Sentiment around the token also started to turn bearish, as evident from the drop in its positive sentiment.