Altcoin
Is BNB losing its spark? What data tells us about the popularity of the altcoin
- BNB’s popularity has declined as social volume and weighted sentiment decline.
- Activity on the BNB network also dropped significantly.
Binance Smart Chain [BNB] it was one of the few coins that faced huge volatility due to its high correlation with the health of the Binance exchange.
BNB Social Volume
Things could get worse due to the altcoin’s decline in popularity, data from AMBCrypto indicated that social volume has dropped significantly in recent days.
On top of that, the overall weighted sentiment has also decreased, implying that the number of negative comments on BNB has increased significantly in recent days.
These factors can have a negative impact on the price movement of BNB.
Source: Santimento
At the time of writing, BNB was trading at $591.70 and its price had grown by 0.78% over the past 24 hours. The price fluctuated violently between the $635 and $537 levels and showed no signs of a clear trend.
The CMF (Chaikin Money Flow) started to decline in the last few days, indicating that the flow of money to BNB was slowing down.
The Awesome Oscillator also turned negative, indicating bearish momentum and a high probability of a downtrend in the future.
Source: Commercial View
Due to the massive fluctuations exhibited by the price movement of BNB, the overall liquidations occurring on the network have increased significantly.
In recent days, positions worth over 20 million have been liquidated.
Source: Coinglass
Despite the money losses, traders remained quite confident. In recent days the number of long positions taken in favor of BNB has grown significantly.
It remains to be seen whether the bulls will be right in the long term.
Source: Coinglass
Another factor that could impact BNB would be the overall health of the network.
According to recent data, DEX (Decentralized Exchange) volumes on the Solana network have outperformed the BNB network by a wide margin.
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Furthermore, the network’s Total Value Locked (TVL) also saw a decline, which could indicate a decline in interest in the BNB ecosystem.
Source: X
The network also saw a decline in activity, which was reflected in a 21.9% drop in the number of daily active users on the network.
Source: Token Terminal