Altcoin
BNB sees renewed demand – Here’s what prompted it
BNB’s ongoing rally spurred hopes of a robust recovery for a coin that lost 19% of its market value since the start of 2023.
- At press time, BNB was up nearly 10% in the last ten days of trading.
- The USDT-Wrapped BNB pair was the most traded in the last 24 hours on PancakeSwap V3.
Bulls were beginning to go on the offensive in the crypto market. Like other digital assets, Binance Coin [BNB] too was viewed with optimism.
BNB turns red hot
The fourth-largest crypto by market cap was exchanging hands at $247.80 at press time, up nearly 10% in the last ten days of trading, as per CoinMarketCap
.The price rally spurred hopes of a robust recovery for a coin that lost 19% of its market value since the start of 2023.
As BNB pumped, on-chain data started revealing intriguing responses from influential investors.
According to a Lookonchain post from the 6th of November, a whale took out a total of 22, 319 BNB tokens in the previous three days from crypto exchange Binance.
The investor then transferred the withdrawn amount to the liquidity pools of decentralized exchanges (DEXes), PancakeSwap [CAKE] and Biswap.
As is well known, liquidity providers (LPs) deposit assets into a pool to facilitate trade on DEXes. In return, they get a cut of the trading fees.
The whale’s intention to supply liquidity was therefore driven by the high demand for BNB tokens. The more the number of trades, the higher the trading fees collected from participants will be.
BNB’s demand could also be gauged by examining the trading pairs on PancakeSwap V3.
As per CoinGecko, the USDT-Wrapped BNB pair was the most traded in the last 24 hours, accounting for more than 36% of the total volumes on the DEX.
Positive talk around BNB
The spike in trading might also have been fueled by a spurt in social media conversations around BNB. AMBCrypto analyzed Santiment’s social volume indicator and detected a sharp spike on the 6th of November.
The metric, which tracks the number of mentions of the coin on crypto-linked social groups, can be used to ascertain how popular the asset is at any given point of time.
Source: Santiment
How much are 1,10,100 BNBs worth today?
Additionally, most of the commentary around the coin was positive, as implied by the sharp spike in Weighted Sentiment indicator.
While investors looked bullish on the exchange token, it remained to be seen if the gains could be held in the coming days. If the latter proves to be true, BNB could expect more capital inflows in the days to come.
