BNB's Meteoric Surge: Skyrocketing Towards $620 or Facing a Ceiling?
Mar 30, 2024
Binance Coin (BNB) has witnessed a significant 12% surge in value over the past week, reaching a near two-week high of $620 by March 29, 2024. This surge has narrowed the valuation gap with its main competitor, Ethereum (ETH), which posted a 5% gain during the same period, trading at $3,624. Analysts attribute the cryptocurrency market's upward trend partly to inflows into spot Bitcoin exchange-traded funds (ETFs). However, mixed signals from on-chain BNB Chain data suggest that the recent rally may have extended too far. Despite challenges, such as a decline in BNB Chain's total value locked (TVL), BNB Chain's activity levels remain promising, with significant engagement from decentralised applications (DApps) and a comparable number of active addresses to Ethereum's most active layer-2 networks. Derivative metrics, including the demand for leverage in BNB perpetual futures contracts, indicate market sentiment remains optimistic, even as BNB faces resistance at the $620 level.
Previous
Next