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BNB: Rising attention in the face of suppressed growth

2min Read

BNB trading activity suggested increased interest in the coin. However, not all aspects linked to the cryptocurrency have been pleasing.

BNB: Rising attention in the face of suppressed growth

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  • BNB’s on-chain volume and Open Interest soared.
  • Traders’ target prices were far from the coin’s press time value as transactions in losses overrode gains.

The volume of Binance Coin [BNB], the native cryptocurrency of the Binance exchange, has reached its highest in almost a month. According to data obtained from on-chain analytic platform Santiment, BNB’s volume tapped 883.77 million on 11 July. 


How much are 1,10,100 BNBs worth today?


Eyes on the spot and derivatives

This rise in trading activity signified that the coin had been attracting increased attention. However, renewed interest in BNB did not just stop at the mere exchange among wallets.

BNB price and on-chain volume

Source: Santiment

Instead, the derivatives market also highlighted how the growing interest in the coin wasn’t only limited to spot trades. For one, BNB’s Open Interest on exchanges has been increasing since 7 July.

The Open Interest measures the total number of contracts held by participants at the end of a trading day. Therefore, it determines market sentiment and strength behind prices.

A fall in this indicator suggests liquidation in the market, with many participants exiting their positions.

But on BNB’s side, the Open Interest increase means that traders were not discouraged by the coin’s price action. As a result, BNB experienced an impressive wave of money flow into the futures and options market.

Additionally, BNB’s 24-hour active addresses followed the same trend as the Open Interest and volume. As of 6 July, the metric was up to 120.47 million. 

The increase in active addresses means that more participants have been involved in successful transactions. Hence, BNB could boast of a good level of usage on its underlying network. 

BNB active addresses and open interest

Source: Santiment

Losses and the aim to resist more

However, increased participation and interest in BNB did not exactly impact liquidation. At press time, Coinglass revealed that BNB’s total liquidations were less than $230,000 on 11 July. 

And from the chart below, shorts accounted for most of it. However, the absence of a widespread wipeout suggests that most traders were mostly long on BNB.

BNB liquidation data

Source: Coinglass

Meanwhile, the coin’s on-chain transaction volume in profit was 11,200. On the other hand, the on-chain transaction volume in loss was far above at 89,600. This was based on Santiment’s data as of the first week of June.


Is your portfolio green? Check the Binance Coin Profit Calculator


While these metrics track the transactions that have moved in gains or the opposite, the wide difference implies that BNB’s growth for a while has not yielded a positive outcome for many holders.

BNB on-chain transaction in volume and loss

Source: Santiment

In its press time state, BNB’s renewed interest might not be the ticket that confirms its position for an uptick. Ergo, the coin has also been affected by the FUD caused by Binance’s regulatory issues.

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Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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