Published on oktober 13, 2024, 12:44 am
Image source: Fox News
```json [ { "TLDR": "BNB price slightly recovered but concerns arise due to lackluster network activity and Binance launchpad results. Despite holding the third-largest cryptocurrency position with a $15 billion market cap lead over Solana, onchain activity dropped by 37%. Declining DApp volumes have led to lower network fees, impacting future price trajectories. Criticisms about Binance listing fees and token launch performances also contribute to negative sentiment towards BNB's pricing trajectory in the competitive altcoin market." } ] ```
BNB price has recently seen a slight recovery, but questions arise about whether the lackluster network activity and disappointing Binance launchpad results could hinder further gains. The native token of BNB Chain, BNB (BNB), exhibited a 4.1% increase from October 10 to October 11, showing resilience despite briefly touching the $555 support level. While many altcoins experienced a 15.6% decline, BNB has remained relatively steady since July and now holds the position of the third-largest cryptocurrency, boasting a significant $15 billion market capitalization lead over Solana (SOL).
Concerns have emerged among investors as onchain activity for BNB Chain dropped by 37% in recent weeks, sparking doubts about the sustainability of BNB’s strong performance. The rise of Ethereum’s layer-2 scaling solutions, especially with platforms like Base network gaining momentum for faster and cost-effective integration with leading platforms like Coinbase, is also casting a shadow over BNB.
The value of BNB might be somewhat tethered to services offered by the Binance exchange, such as exclusive launchpad access and trading fee discounts. However, beyond these perks, BNB finds wide utility across decentralized applications (DApps) for various purposes including trading, staking, yield farming, real-world assets (RWA), lending, gaming, and derivatives markets.
To gauge if the activity on the BNB Chain positively affects the token’s value requires scrutiny of onchain deposits and network fees as crucial metrics. Presently, while BNB Chain’s total value locked remains at 8.1 million BNB showing little fluctuation from two months ago; network fees have dipped to their lowest figures in over four years for the week ending October 7.
However, declining DApp volumes on BNB Chain are contributing to a drop in network fees and hinting at potential concerns for future price trajectories for BNB. Notable decreases in DApp volumes include PancakeSwap down by 25%, Uniswap by 22%, against Ethereum’s comparatively lower reduction of 9% according to DefiLlama data.
Furthermore, concerns remain high due to criticisms regarding listing fees on Binance and remarks made about recent token launch performances on the platform haven’t been stellar either. These factors combined with subdued activity on the blockchain are affecting sentiment towards both the future of Binance’s services and subsequently impacting projections for the pricing trajectory of BNB tokens in an increasingly competitive altcoin landscape.
Original article posted by Fox News
