Why BNB’s troubles will remain despite Greenfield update

• BNB’s price dropped by 3% in the last 24 hours.
• Its Open Interest has increased of late, while other metrics looked bearish. 

BNB Chain [BNB] announced the date of Greenfield’s upcoming maintenance update, which will take place on 25 June. The upgrade will not only fix a few bugs in BNB Greenfield, but will also bring along quite a few new features.

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Even though developers were working on the update, BNB, like multiple other tokens, registered a decline in its value. 

All about the Greenfield update

As per the announcement, all buckets/objects previously stored on the Greenfield Testnet will be cleared and won’t be available for query anymore. Some other notable features include additional support for multiple messages in a transaction using the EIP712 sign approach.

BNB will add a feature allowing mirroring buckets, objects, or groups by using an ID or name. Moreover, the update will enable support for adding keyManager to txOpt, so that it can handle a large batch of transactions sent by a single client. 

Investors are concerned

Though the upcoming update looked good for BNB Chain, its native token’s state was in question. According to CoinMarketCap, BNB’s price had declined by 3% over the last 24 hours. At the time of writing, it was trading at $243.67, with a market capitalization of over $37.9 billion.

A positive update was that the price plummet was not accompanied by an increase in volume. If such an episode happens, it increases the chances of a continued downtrend. However, all other metrics looked bearish.

For instance, BNB’s 1-week price volatility declined sharply. Its daily active addresses also plummeted, which looked negative. BNB’s velocity registered a decline, meaning that BNB was used in transactions less often within a set time frame.

Source: Santiment

Read Binance Coin’s [BNB] Price Prediction 2023-24

This can cause further trouble for BNB

A look at Coinglass’ data gave more reasons for concern as it suggested a further drop in its value over the coming days. As per the chart, BNB’s open interest increased over the last few days.

An uptick in the metric means that the ongoing price trend might continue, increasing the chances of a downtrend. 

Source: Coinglass