Will BNB investors keep a positive outlook despite distrust around CZ, Binance
- CZ sends multiple emails to BNB users however FUD remains the same
- Activity and weighted sentiment for BNB decline but traders remain positive
Given the ongoing uncertainty in the crypto market, CZ sent out personal emails to
In a recent development, it was observed that CZ had sent out personal emails to each client to calm down the FUD surrounding Binance. Even though CZ continuedDespite constant reassurance from CZ around Binance’s solvency, the number of frauds on the BNB chain could make it hard for users to have faith in Binance and BNB.
According to data provided by Solidus Labs, 12% of projects on BNB Chain have been accused of fraud this year.
Skeptics remain skeptical
According to data provided by Santiment, the weighted sentiment around BNB had been negative throughout the past month. A negative weighted sentiment implied that the majority of the crypto community had more negative than positive things to say about BNB.
Furthermore, the number of social engagements around Binance also decreased during this period. Based on data provided by LunarCrush, social engagements around BNB fell by 24.9%.
Coupled with that, the activity on the BNB chain decreased as well. From data provided Santiment, it was observed that the number of daily active addresses on the BNB chain declined materially over the last month. At the time of writing, the number of daily active BNB addresses was 2,749.
Another indicator of declining activity on the BNB chain was the falling velocity of BNB. The velocity for BNB had declined materially over the past few weeks. This indicated that the number of times BNB had moved across addresses had decreased.
However, despite declining sentiment and activity, traders remained optimistic about BNB’s future.
In the hands of traders and holders…
According to data provided by coinglass, the number of long positions taken for BNB grew considerably over the past few weeks. At press time, 52% of traders had taken long positions in favor of BNB.
Despite the fact that traders were optimistic about BNB, holders continued to suffer losses.
The Market Value to Realized Value (MVRV) ratio declined immensely over the past few weeks. This could be seen in the chart given below. A negative MVRV ratio implied that if the majority of the holders of BNB decided to sell their holdings, they would be doing so at a loss.
At the time of writing, BNB was trading at $243.52 and its price had depreciated by 0.42%