Bnb Chain Dex Volume Increases – What This Means for the Bnb Price
Journalist
- This increase shows that the focus is shifting back to the chain.
- BNB could fall to $580 despite the TVL increase.
BNB Chain recorded DEX trading volumes above $700 million for the first time in May. Artemis data confirms this.
DEX stands for Decentralized Exchange. Artemis is an analytics platform focused on crypto metrics.
Is a new race underway?
So far, DEX volumes on the blockchain have been declining since mid-April. Since then, the value of DEX has not reached or exceeded $1 billion.
The recent increase in BNB Chain activity suggests that the user base is growing. Binance is a cryptocurrency that many people are unfamiliar with. [BNB] The cryptocurrency used to transact on the network.
Low DEX volume may indicate a decline in transaction activity along the chain.
Source: Artemis
Higher DEX volume indicates an increase in network activity, which in turn indicates an increase in coin demand.
BNB’s current price is $593.70, up a small 1.23% in the last 24 hours. The price could rise if on-chain volume continues to grow.
The coin has not seen any significant buying pressure recently. If so, a $620 return could be possible.
AskFX has observed a decline in on-chain transaction volume since May 10.
BNB’s move could be wrong
Rising price and growing volume suggest the uptrend could continue. BNB’s recent price increase coupled with the decline in volume suggests weakness in the uptrend.
BNB may have experienced a false breakout. If so, BNB could drop lower to $580 as support.
Source: Santiment
AskFX also looked at the Total Value Locked. TLV is a measure of the health and stability of a network. This metric can be used to determine whether market participants are locking or staking assets on a particular protocol.
When TVL is rising, it is a sign that a project is perceived as trustworthy. In this case, the value of the locked assets must have increased due to a better return.
A falling TVL indicates that assets are being removed and that participants do not believe the protocol can generate good returns.
DeFiLlama reports that Binance Smart Chain’s TVL is $61.2 billion. The protocol under the Smart Chain has seen significant gains over the past week.
Source: DeFiLlama
This increase across the board indicates that participants have confidence in the chain’s safety and health. The value is still well below its 2021 peak.
Here is the BNB market cap in BTC.
The BNB price could also increase if TVL continues to rise, but a possible $1000 prediction could only happen when the value hits $10 billion.
This prediction may not be accurate. It is still important to remember that there are other factors that could affect the price.
