At the time of writing, most of the major cryptocurrencies on the market were trading in the red. Not only in the daily time period, but also in the weekly one.
Like other altcoins, Binance Coin also posted some serious losses after Bitcoin’s crash on September 7. The crypto lost almost 19% of its value in the last five days alone, while it also fell 30% in just fifteen days.
Now, although this was largely due to the larger market crash, there were other reasons behind it as well. This article will delve into it.
Binance Coin correlation with BSC
Not surprisingly, some correlation can be observed between Binance Smart Chain (BSC) activity and the price of BNB. In fact, in the past, healthy statistics on Binance Smart Chain regarding growth and network share have acted as support for the price of BNB.
For example, a recent report also touched on how BSC had steady network growth compared to other chains like Polygon.
Regarding new addresses, Ethereum addresses created daily do not exceed 110,000, while BSC addresses are estimated at 182,000. Additionally, Polygon saw a huge increase when the number of new addresses went from 500,000 to just under 1.4 million.
In particular, the growth in the Polygon network was also evident in how the MATIC price was maintained.
Additionally, daily transactions on the Binance Smart chain have seen a decline, along with the price of BNB, since September 5. Since then, BNB has lost about 30% of its value. While for the most part Binance Smart Chain seemed to be noticing metric growth, the hacks on BSC have played a spoil-kin role.
On September 20, Pnetwork, a multi-chain bridging protocol, announced that it was hacked and lost 277 pBTC (its bridged version of Bitcoin) on Binance Smart Chain. Even though these tricks had no major price implications, the BNB price was still in a downtrend, at the time of writing.
However, in the past, news of these attacks has had a short-term effect on token prices.
Metrics Say Futures Look Bright
Despite the price drop at the time of writing, the metrics paint a ray of hope for BNB. Binance Coin’s 30-day MVRV appeared to have bottomed out on September 20, with the same noticing a rally shortly thereafter.
This seemed to be a good sign as there was some rally in the BNB market at press time. In fact, a surge in the Age Consumed token, at the time of writing, also confirmed a trend reversal, as it happened alongside a local low.
Other than that, the BNB futures market gave a slightly bullish outlook as the long-to-short ratio of the best traders highlighted a rally. An uptrend in it meant that longs have dominated the market, which in turn implies that the market is slowly turning bullish on BNB and expecting a recovery.
As of September 21, long accounts were 67.9% while short accounts were 32.1%. The ratio of net long and net short accounts to total accounts with positions gives the long-short relationship.
Overall, therefore, it appears that after the recent drop, the $ 360- $ 370 range could be a good entry point for BNB traders, as futures traders expect a reversal. However, with the market still falling at press time, it could go either way for BNB.
This is a machine translation of our English version.