Altcoins
Is BNB losing its spark? What data tells us about the popularity of altcoins
- BNB’s popularity has declined as social volume and weighted sentiment have fallen.
- Activity on the BNB network has also dropped significantly.
Binance Smart Chain [BNB] has been one of the few coins to face massive volatility due to its high correlation with the health of the Binance exchange.
BNB social volume
Things could get worse due to the waning popularity of the altcoin. Data from AMBCrypto indicates that over the past few days, social volume has decreased significantly.
Along with this, the overall weighted sentiment has also fallen, implying that the number of negative comments regarding BNB has increased significantly over the past few days.
These factors can have a negative impact on the price action of BNB.
Source: Santiment
At press time, BNB was trading at $591.70 and its price increased by 0.78% in the last 24 hours. The price was fluctuating violently between the $635 and $537 levels and showed no signs of a clear trend.
The CMF (Chaikin Money Flow) had started to decline in recent days, indicating that money flowing into 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 BNB’s price action, the total number of liquidations occurring on the network has increased significantly.
In recent days, more than 20 million positions have been liquidated.
Source: Coinglass
Even though traders lost money, they remained optimistic. In recent days, the number of long positions taken in favor of BNB has increased 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 general condition of the network.
According to recent data, DEX (Decentralized Exchange) volumes on the Solana network have significantly outperformed the BNB network.
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Additionally, the network’s TVL (Total Value Locked) has also seen a decline, which could indicate a decline in interest in the BNB ecosystem.
Source:
The network also saw a drop in activity, which resulted in a 21.9% drop in the number of daily active users on the network.
Source: Token Terminal