Binance Coin Slides Under $220 – What Comes Next After Consolidation?
21 Agosto 2023 - 10:45AM
NEWSBTC
Binance Coin (BNB) faced a weekend of market indecision, leading
the altcoin into a range-trading scenario. The coin, which had
dropped below the $220 mark on August 18, experienced fluctuations
between the narrow range of $213 to $220 over the course of the
weekend. As of the latest update, CoinGecko reported the
current BNB price at $216, marking a 0.3% decline over the past 24
hours and a significant seven-day slump of 10%. Related Reading:
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Binance Coin (BNB) price action today. Source: Coingecko The past
year has been marked by significant challenges for BNB, largely
attributed to the regulatory uncertainties surrounding its parent
company, Binance. The situation escalated in June when the US
Securities and Exchange Commission categorized BNB and its sibling
token, Binance USD (BUSD) stablecoin, as securities within the
context of its lawsuit against the cryptocurrency exchange.
Despite vehement opposition from Binance and the exchange’s chief,
the impact on BNB’s demand has been evident, with cautious
investors steering clear of assets entangled in regulatory
ambiguities. Binance Coin Market Dynamics And CEO’s Stance Binance
CEO Changpeng “CZ” Zhao recently took to the social media platform
X (formerly Twitter) to address growing speculation that Binance
was proactively shoring up BNB’s price to prevent it from dipping
below $212. CZ refuted these claims, asserting that BNB’s
price was, in fact, shaped by market forces. He challenged the
notion of artificial price support and emphasized that the coin’s
valuation was ultimately determined by its interaction with the
open market. This declaration marked an attempt to alleviate
concerns that the exchange was manipulating the token’s price. And
where did the $212 magic number come from? #BNB price is determined
by the market. A $30m re-buy is less than 4% of a single day’s
volume. 🤷♂️ — CZ 🔶 Binance (@cz_binance) August 19, 2023 On-Chain
Activity And DeFi’s Influence The decline in BNB’s price can also
be attributed to diminished on-chain activity on the Binance Smart
Chain, a prominent layer1 smart contract blockchain. Decentralized
Finance (DeFi) activities have experienced a significant
contraction, with the weekly exchange volume plummeting from its
peak of $24.70 billion to a mere $2.34 billion, as per DeFillama
data. Source: Defillama Moreover, the total value of assets
within the Binance Smart Chain ecosystem has dwindled by a
staggering 87%, now resting at $2.84 billion, according to
DeFillama’s statistics. Related Reading: Ordinals Sales In
Freefall: 97% Decrease Sparks Worries About Bitcoin NFT’s
Extinction Binance Coin: Navigating The Crossroads As BNB navigates
these uncertain waters, traders and investors remain at a
crossroads, carefully assessing the potential for regulatory
clarity, market dynamics, and the revitalization of on-chain
activities to influence the coin’s trajectory. BNB market cap
currently at $33 billion. Chart: TradingView.com The weekend’s
range trading and the response from Binance’s CEO underscore the
complexities of BNB’s journey, as it strives to regain its footing
amidst a landscape marked by challenges and opportunities. (This
site’s content should not be construed as investment advice.
Investing involves risk. When you invest, your capital is subject
to risk). Featured image from Siam Blockchain
Grafico Azioni Binance USD (COIN:BUSDUSD)
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Grafico Azioni Binance USD (COIN:BUSDUSD)
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