Altcoin
BNB traders have reason to rejoice as this DEX development comes to light
DEX volumes on the BNB network witnessed a rise to reach its yearly highs. Surprisingly, PancakeSwap played a huge role in this growth.
- BNB witnesses a surge in DEX volumes, however, TVL continues to decline
- Sentiment around BNB falls despite the rise of activity on the social front
According to recent data, DEX volumes on the BNB chain have been rising over the last few months. At press time, the DEX volume on BNB reached its highest point of 2023.
Realistic or not, here’s BNB market cap in BTC’s term
The interest in BNB’s DEXs could have a positive impact on BNB’s DeFi growth. However, since the beginning of 2023, BNB’s TVL has been declining. Data from DeFiLlama indicated that the total value locked on BNB smart chain was $4.65 billion.
Source: DefiLlama
If the DEXs on BNB continue to show improvements, this trend could reverse in the future. Furthermore, the spike in DEX volumes could be mainly attributed to popular dApps on the protocol, such as PancakeSwap and Thena.
An appetite for Pancakes
PancakeSwap is an automated market maker (AMM) that enables two tokens to be traded on the Binance Smart Chain.
According to DappRadar’s data, the number of transactions made on the PancakeSwap DEX increased by an astounding 210.96%, over the last month. This occurred due to a massive spike in activity on the PancakeSwap network. As a result, the protocol’s volume also surged by 188.94%.
Source: Dapp Radar
The popularity of DEXs could also translate to BNB’s social growth. Lunar Crush’s data indicated that over the past month, the social mentions for BNB have grown by 233.2%. In tandem with the mentions, BNB’s social engagements increased by 513%.
However, regarding sentiment, the overall consensus on BNB across social platforms was negative. This was indicated by the declining weighted sentiment for BNB.
Source: Santiment
Impact on BNB
The negative sentiment had an impact on the BNB price. Since 26 April, the price of BNB experienced a decline of 8.91%. On 8 May, the price fell below the support level of $317.2 and has been trading between the $317.6 and $299.8 levels since then. However, on 12 May, the price started gaining momentum and has been on the rise ever since.
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Furthermore, at press time, the Money Flow Index (MFI) for BNB was recorded at 69.14. This indicated an increase in overall money flowing into the security, implying a bullish sentiment among investors who expect the price to rise.
The Relative Strength Index (RSI) also increased in tandem with the price and was at 59.57.
Source: Trading View
