BNB DApp volumes down 25% in a week — Will BNB price follow?
BNB price staged a mild recovery, but could lackluster network activity and less-than-stellar Binance launchpad results put a cap on the gains?
BNB (BNB), the native token of BNB Chain, gained 4.1% from Oct. 10 to Oct. 11, signaling resilience after briefly testing the $555 support level. BNB price has remained relatively stable since July, even as the broader altcoin market saw a 15.6% decline. This performance has solidified BNB as the third-largest cryptocurrency, with a significant $15 billion market capitalization advantage over Solana (SOL).
Ochain activity for BNB Chain dropped by 37% over the past week, raising concerns among investors about the sustainability of the BNB recent outperformance. Traders are wary that Ethereum’s layer-2 scaling solutions are gaining traction, especially following the launch of the Base network, which offers fast and exceptionally low-cost integration with Coinbase, the leading US exchange and Web3 wallet provider.
It could be argued that BNB’s value is partly driven by the offerings of the Binance exchange, including exclusive launchpad access and trading fee discounts, which may reduce the need for BNB usage on the BNB Chain itself. However, beyond network transaction fees, BNB is widely utilized across the ecosystem’s decentralized applications (DApps) for trading, staking, yield farming, real-world assets (RWA), lending, launchpads, gaming, and derivatives markets.
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Author: Marcel Pechman
