- BNB’s popularity waned as social volume and weighted sentiment declined.
- Activity on the BNB network has also decreased significantly.
Binance Smart Chain [BNB] is one of the few coins facing significant volatility due to its high correlation with the health of the Binance exchange.
BNB social volume
Things could get worse due to the decline in altcoin popularity, with AMBCrypto data showing a significant drop in social volume over the past few days.
In addition to this, the overall weighted sentiment has also declined, suggesting that the number of negative comments surrounding BNB has spiked significantly over the past few days.
These factors may adversely affect BNB’s price fluctuations.
Source: Santiment
At the time of writing, BNB is trading at $591.70, and its price has increased by 0.78% in the past 24 hours. The price was fluctuating wildly between the $635 and $537 levels, with no clear trend signs.
CMF (Chaikin Money Flow) has started to decline in recent days, indicating that capital inflows into BNB are slowing down.
The Awesome Oscillator has also turned negative, indicating bearish momentum and a likely future downtrend.
Source: Trading View
The large fluctuations exhibited by BNB’s price movements have led to a significant increase in the overall liquidations occurring on the network.
Over 20 million positions have been liquidated in the past few days.
Source: Coin Glass
Despite losing money, traders still had high hopes. Over the past few days, the number of long positions in favor of BNB has increased significantly.
It remains to be seen whether the bulls’ view turns out to be correct in the long run.
Source: Coin Glass
Another factor that can affect BNB is the overall health of the network.
According to recent data, DEX (decentralized exchange) volume on the Solana network has significantly exceeded that on the BNB network.
Is your portfolio green? Check out the BNB Profit Calculator
Furthermore, TVL (Total Value Locked) by the network has also declined, which may indicate a decline in interest in BNB’s ecosystem.
Source:X
The network also saw a decline in activity, reflected in a 21.9% decrease in the number of daily active users on the network.
Source: Token Terminal
