BNB sees weakening demand and increased sell-offs: What’s next?

• BNB has recorded weakening on-chain sentiment as participants show a lack of interest in the asset.
• Open Interest in the Options market has continued to drop, while spot investors are selling.

Binance Coin [BNB] has maintained a relatively steady level over the past day, with no significant gain or loss recorded during this period.

Current on-chain sentiment does not support a market rally. As interest wanes in both the spot and derivative markets, selling pressure is becoming more visible. Here’s everything to know.

On-chain interest in BNB fades fast

Interest in trading and the utility of BNB across the BNB Chain has weakened over the past day.

At the time of writing, the number of Daily Transactions completed on-chain has seen a steep decline, reaching its lowest level this month.

This drop occurred after a 12.02% decline, following 12.7 million Daily Transactions completed during the period, as indicated on BSCScan.

Source: BSCScan

This decline in activity implies that market participants are not actively engaging with the network or using BNB.

Potential market participants may be reacting to this signal, as the number of New Addresses has dropped significantly over the past day. 

At the time of writing, the number of new participants had declined by 25%. Typically, this metric increases during periods of high interest and decreases during periods of low interest.

There’s more: the most active addresses have likely begun selling as well, as they saw a significant spike in activity over the past day.

Source: Artemis

The number of Daily Active Addresses that finalized over 100 transactions surged significantly during this period, according to Artemis.

This trend suggests that the most active participants and traders using BNB are exiting, particularly as volume has dropped to $1.29 billion following an 8% decline.

Derivative market sides with the bears

The derivative markets on CoinGlass have both turned bearish on BNB, with investors anticipating further price declines.

In the derivative market, options traders have led the sell-off. At the time of writing, Option Open Interest—which determines whether liquidity is entering or exiting the market—indicates the latter.

Option Open Interest fell by 71.36%, down to $3.09 million in the past day, implying widespread contract closures, with long liquidations contributing to the trend.

Source: CoinGlass

A closer look at the OI-Weighted Funding Rate—which gives better insight into overall derivative sentiment—confirms that bears are in control.

This metric has fallen into negative territory, with a reading of -0.0023%, suggesting that most open contracts are from sellers betting on a price drop.

$36M weekly sell-off suggest more pain ahead

Analysis shows that the spot market reflects the behavior of both on-chain participants and derivative investors.

Selling volume has increased in the spot market, with traders offloading $2.18 million worth of BNB in exchange for other assets, possibly stablecoins or alternatives with stronger price outlooks.

Source: CoinGlass

This sell-off has pushed cumulative weekly sales to $36 million, a significant outflow into other ecosystems. If this negative trend continues across markets, it’s likely to trigger a further price downturn for BNB.