BNB gets Binance’s nod for safety amid ‘unstablecoins’ frenzy- Here’s how
- Binance altered storing the industry recovery fund as stablecoins and moved it to BNB, ETH, and BTC.
- The crypto community believes that the decision could set off buying pressure.
Binance CEO Changpeng Zhao announced on 13 March that the exchange would stop keeping the rest of the $1 billion recovery fund in stablecoin.
CZ, as he is popularly called, confirmed that the fund had been kept in BUSD. But the ill-fated events that befell stablecoins recently have made it necessary to convert to crypto-native Binance Coin [BNB], Ethereum [ETH], and Bitcoin [BTC].
Given the changes in stable coins and banks, #Binance will convert the remaining of the $1 billion Industry Recovery Initiative funds from BUSD to native crypto, including #BTC, #BNB and ETH. Some fund movements will occur on-chain. Transparency.
— CZ 🔶 Binance (@cz_binance) March 13, 2023
How much are 1,10,100 BNBs worth today?
In November 2022, Binance announced a recovery fund after the FTX contagion revealed that crypto firms were not void of collapse. The exchange considered the fund helpful so as to bail out distressed crypto assets and projects in their time of need.
Switching the store of value ends in…
However, its Paxos-issued stablecoin got the regulatory hammer and has now been forced to change the storage location. And keeping in another stablecoin or a “trusted” bank could pose even more risk because of the turmoil around these entities.
Before the disclosure, the BNB value had increased by 9.28% in the last 24 hours. This increase, accompanied by an all-around market revival helped the coin regain the $300 region. But is BNB capable of rejecting bearish desire in the short term?
Indications from the daily chart showed that BNB was not entirely in a safety net because of the Directional Movement Index (DMI) signs. At the time of writing, the -DMI (red) was 22.01 while the +DMI (green) was 27.64.
Although the greens seemed higher, the Average Directional Index (ADX) did not confirm a sustained movement yet. At press time, the ADX (yellow) was 19.48. Since this indicator value was below 25, it meant that the BNB trend was not extremely strong.
However, the On-Balance-Volume (OBV) seemed to be closing higher than the previous days. If maintained, it could carve out a bullish outcome for BNB depending on the investors’ sentiment.
Soaring on the BNB chain
Further, the strife that hit the crypto topography last week could not hinder the BNB chain from registering landmarks with activities therein.
According to its key highlight report, its Weekly Active Users (WAU) summed up to 3.98 million.
Read Binance Coin’s [BNB] Price Prediction 2023-2024
The metric measures the number of users who make the most out of their crypto assets by trading. The chain was also able to meet up the WAU number with an average daily transaction of 3.41 million.
Additionally, many comments from the CZ revelation aligned with a possible bullish market due to the exchange action. Notably, a few people in the crypto community believed that buying pressure would soon resume. And in response, could catapult the market in the upward direction. Consider this tweet, for instance.
.@cz_binance has announced to convert $BUSD in the Industry Recovery Fund to $BTC, $ETH, and $BNB.
With nearly $1B untapped, this means the market will have extreme buying pressure soon.
— The Data Nerd (@OnchainDataNerd) March 13, 2023