BNB: Rising attention in the face of suppressed growth
- 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.
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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.
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.
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.
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.
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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.
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.