Binance Coin (BNB) has recently experienced a significant decline due to market volatility and the SEC lawsuit against Binance and its founder Changpeng Zhao (CZ). However, despite these obstacles, BNB has shown a remarkable recovery and promising prospects. This article will analyze the factors contributing to BNB’s resurgence, including the growing usage of decentralized applications (DApps) on the Binance Smart Chain (BSC) and its impressive market cap figures and increased revenue.
The Recovery of BNB
BNB faced a sharp decline from its yearly high of $350 to the $203 level following the SEC lawsuit against Binance and CZ. However, recent price movements indicate signs of recovery and bullish sentiment. Over the past 24 hours, BNB has gained 4.5%, and its performance in the seven, fourteen, and thirty-day time frames demonstrates an upward trend, with gains of 20%, 24%, and 38% respectively.
Increasing Use of DApps
One of the driving factors behind BNB’s price rally is the increasing use of DApps on the Binance Smart Chain. Data from DappRadar reveals a surge in DApp volume, currently at $4.83 billion, representing a 12% increase. The BNB chain boasts an ecosystem of 5,120 DApps and has recorded 4.89 million transactions, reflecting a 12.73% surge in the past seven days. These figures indicate a growing demand for BNB as it serves as the primary token within the BSC ecosystem.
Comparing BNB to Ethereum (ETH), DappRadar data highlights BNB’s superior performance in various indicators such as contracts, total unique active wallets (UAW), decentralized finance (DeFi) total value locked (TVL), and non-fungible token (NFT) volume. The BNB chain has held the top position over the past 24 hours, showcasing its usage and adoption. This outperformance contributes to the positive market sentiment surrounding BNB and bolsters its price.
Further boosting the Binance Coin prospects, Token Terminal data reveals impressive market cap figures for BNB, with a circulating market cap of $48.02 billion, marking a 14.18% increase. Additionally, BNB’s fully diluted market cap stands at the same value, reflecting a 28.32% growth. The revenue generated by BNB in the past 30 days has increased by 28.51%, reaching $1.47 million. Furthermore, BNB has recorded significant fee growth, with a 27.98% fee increase over the past 30 days and an annualized revenue of $187.56 million. These fundamentals contribute to the positive sentiment surrounding BNB.
According to Captain Faibik, a prominent crypto analyst, Binance Coin is poised to achieve a new yearly high in the first half of 2024. This prediction is based on an analysis of BNB’s 1-week chart, revealing a breakout from a descending triangle pattern, signaling the end of the macro downtrend and initiating a new uptrend phase for BNB. Faibik suggests that BNB’s price could potentially experience an impressive uptrend of 171% in the initial weeks of 2024, surpassing the current all-time high (ATH) of $686.
However, several resistance levels must be overcome for this projection to materialize. At the current trading price of $307, BNB faces a significant seven-month resistance barrier, hindering its ascent to the $314 level, the next resistance level in the near term. Analyzing the 1-day chart, it becomes evident that reaching the all-time high level would require surpassing additional macro resistance levels, including $329, $402, $450, $563, $607, $639, and $653.
While the theory proposed by Faibik holds promise, the actual realization of Binance Coin’s new yearly high in the early months of 2024, along with a sustained uptrend, remains to be observed. BNB’s resilience and recovery in the face of adversity, coupled with the growing usage of DApps on the Binance Smart Chain and its impressive market cap figures and increased revenue, indicate positive prospects for the future. Investors and crypto enthusiasts will closely monitor BNB’s progress and eagerly anticipate its potential for further growth and success.
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