BNB, the native token of BNB Chain, has started to recover and rose by 3% on Jan. 26, reclaiming the $300 level. Despite its weakness, the ongoing recovery is supported by increased network activity.
One of the main factors contributing to the value of the BNB token is the reduced trading fees and exclusive launchpad offers and services provided by Binance. A newly launched “dual investment” product from Binance could further increase BNB’s trading volumes, which have already surpassed $998 million in the past 24 hours.
To assess the health of a blockchain ecosystem, it is important to compare its performance with other competing chains. When looking at DApp volumes, Ethereum and its layer-2 scaling solutions remain dominant, accumulating over $31.73 billion in the past seven days. Ethereum’s nonfungible token (NFT) volume also stands at $226 million. In comparison, BNB Chain has accumulated $3.82 billion in DApp volumes, with its NFT volume increasing by 11% to $864.93 million during the same period. However, when considering active unique addresses (UAW), BNB Chain takes the lead with 2 million UAWs, while Ethereum has 359,380.
In terms of DApp engagement, BNB Chain has seen a 6.4% growth in the number of addresses involved in the past seven days, along with a growing transaction volume. This could explain the increasing total value locked (TVL) on the blockchain. Data from DefiLlama shows that BNB Chain’s TVL has steadily increased since mid-December 2023, peaking at $3.73 billion on Jan. 18. Although there has been a slight decrease in this metric in recent days, it started to pick up again on Jan. 25, indicating a growing trust in the blockchain among users.
Looking at the daily chart, a bull flag pattern can be observed, suggesting a potential continuation of the uptrend. BNB bulls may face resistance at the upper boundary of the flag, around $316. However, if the price manages to close above this level, it could signal a breakout and a potential rise to $450, representing a 48% increase from the current price. The 50-day exponential moving average (EMA), 100-day EMA, 200-day EMA, and the relative strength index (RSI) all indicate upward momentum, favoring the upside. The increase in price strength from 40 to 50 suggests that the bulls are buying during dips. On the downside, the flag’s lower limit at $282 could provide support, followed by the 100-day EMA at $271 and the major support level at $250.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and exercise caution when making investment decisions.