BNB fails to impress despite BNB Chain hitting these milestones
- BNB’s DeFi sector continues to see growth despite SEC lawsuit and volatility.
- However, BNB’s price fails to recover and continues to decline.
The SEC’s lawsuit against Binance[BNB] impacted both the protocol and the token negatively. Despite this, BNB’s ecosystem showcased resilience and continued to retain its dominance in the sector.
Realistic or not, here’s BNB’s market cap in BTC’s terms
BNB’s DeFi sector remains unfazed
Despite facing intense competition and market volatility, BNB Chain secured the third position in terms of Total Value Locked (TVL) according to DefiLlama. Notably, among blockchain ecosystems with a TVL surpassing $100 million, BNB Chain held the third position. This further highlighted how it remained unfettered despite market uncertainty.
A large part of the contribution made to the TVL was due to DeFi dApps on the BNB network. The top five protocols on the BNB Chain, all of which belong to the DeFi sector, collectively represent an impressive 69.8% of the chain’s overall TVL.
Nevertheless, despite the relative stability of BNB’s TVL, there was a decline in 2023. BNB Chain’s TVL experienced a slight drop of 3.2% since the beginning of the year. This decline was primarily attributed to the reduction in TVL on Pancake Swap and Wombat, indicating an ongoing adjustment period for BNB’s dApps.
Even though BNB’s DeFi sector remained relatively unfazed by market uncertainty, the same couldn’t be said about the BNB token’s price.
Prices continue to plummet
Since 29 May, the price of the BNB token fell by 26.16%. The price exhibited multiple low highs and lower lows during this period. Furthermore, it established a bearish trend till it tested the support level of $219.9 on 10 June. After this, BNB has been in a period of consolidation and was seen to be fluctuating within the $257 and $219 levels.
The Relative Strength Index (RSI) and Chaikin Money Flow (CMF) were both relatively high over the last few days. This was an indication that the momentum and money flow favored the bulls at the press time.
Even though no bullish trend was established yet, if the price manages to retest and weaken the $257 price level in the future, there may be chances of a breakout in the future.
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Furthermore, the Market Value to Realized Value (MVRV) ratio for BNB indicated that most addresses holding BNB were holding at a loss. This indicated that there was less selling pressure on BNB at press time.