Will BNB continue to show dominance in count of daily active users?
- BNB Chain’s weekly active users were 2.6 million.
- Popular dApps saw a decline in activity, impacting BNB negatively and adding to the selling pressure.
BNB, the native token of the Binance blockchain performed well in two metrics- first in terms of daily active users and second in the count of the total number of transactions in the past week.
According to BNB Chain’s recent tweet, at the time of writing, the weekly active users were 2.60 million and the average daily transactions on the BNB chain hit the 2.51 million mark.
The high activity has also helped other protocols on the BNB chain.
Read BNB’s price prediction 2023-2024
For instance, Radiant Capital, a decentralized finance (DeFi) protocol, witnessed a surge in the number of daily active users on its platform after deploying Radiant V2 on the Binance blockchain.
Not all that glitters
However, there are also factors that suggested activity on the BNB chain might decline. Popular decentralized applications (dApps) such as PancakeSwap, 1inch Network, and ApeSwap- all witnessed a decline in activity.
PancakeSwap saw a decrease of 21.21% in terms of daily active wallets, whereas 1inch Network and ApeSwap saw a decline of 28.97% and 15.32%, respectively.
Furthermore, PancakeSwap’s volume also declined by 38.18% over the last month. At press time, the current volume on PancakeSwap was $2.59 billion. This decline in volume impacted the number of transactions on the dApp, which fell by 18.87% during the same period.
Short-term holders rejoice
Well, the decline in activity also impacted the total value locked (TVL) for BNB, which fell from $5.02 billion to $4.76 billion over the last two months, according to DeFiLama.
All these factors affected the BNB token as well. For example, BNB’s velocity, which measures the frequency with which BNB is being traded among addresses, also declined. This suggests that the token may be losing momentum.
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The negative long/short difference implied that short-term BNB holders could have the opportunity to take advantage of BNB’s growing prices. This would add to BNB’s selling pressure, which could negatively impact its price.
That being said, at press time, the price of BNB was $303.22 and had increased by 2.61% in the last 24 hours. While the recent data suggests that BNB chain’s daily active users and total transactions have been strong, there are also factors that suggest that activity on the blockchain might decline in the future.