BNB come back efforts and attention for holders
Listen to this article
Binance Coin Chain [BNB] revealed that their efforts to stabilize the ecosystem have yielded positive results. In its weekly report, BNBChain notes that the experiences on the network have been nothing short of encouraging.
According to his tweet on October 15, BNB has set up a decentralized response to limit events like October 6 mining.
Binance Coin BNB price prediction
BNB confidence declines
In a new round of events, traders have rekindled their interest in swaps. According to data from Coinglass, the funding rate of BNB traders through USDT and BUSD are both in the green. In fact, only a handful of transactions show less interest in trading the coin.
However, BNB failed to revive investor confidence. This is because the trend is represented by the Market Value to Actual Value (MVRV) ratio. Following the MVRV trend, investors are not looking for more profit. This was revealed by the online analytics platform, Santiment.
At the time of this writing, the MVRV is 0.459%. Even on the day of mining, the rate was 4.449%, indicating that the attack was not enough to disrupt the BNB ecosystem. Therefore, the current rate means that the actual value of BNB is worth more than the market value. As a result, BNB holders can risk the asset losing more than it's worth.
Additionally, MVRV is the only on-chain metric affected. According to Santiment, the interest of major investors in the coin has recently tilted to the negative side. The whale supply ratio shows 41.94%, down from the beginning of October.
Should holders give BNB more time?
Based on futures market updates, BNB investors may need to scale back their faith in an extended rally. According to Coinglass, avid BNB traders have recently felt the market outrage.
At press time, BNB's long liquidation was $106,230 in the early hours of October 16. This is a lot higher than the short liquidation which was as low as $15,590.
However, the data at press time suggests that BNB may not see a rebound, especially as the previous two days showed more protracted sell-offs.
With BNB losing 22% of volume in the last 24 hours, investors may need to stop buying a fund that could go lower. However, there is no doubt that the market momentum can change at any time.
Oct 17, 2022