Binance‘s native token has struggled to maintain an upward trajectory in 2022. On 29 August, BNB declined sharply below $288 and tested the $275 support zone on CoinMarketCap. Bears have taken control of the price action, but can the ecosystem stay alert regardless of distraction?
Patience is key
BNB underwent quite a journey from being just a digital token used for transaction fees and discounts on Binance to becoming investors’ choice. At press time, the token stood at the $288 mark after witnessing a 1.96% correction over the last seven days.
Having said that, BNB’s use cases expanded to hundreds of applications on numerous platforms and projects within the crypto ecosystem. Following this, the platform even introduced a burning mechanism to aid the token’s price amidst such a demand hike.
Around press time, BurnBNB reported that 114,900 BNB, or more than $46 million had been burned since BEP-95 came into force.
Although, the biggest one occurred last year. On 15 April 2021, Binance burned more than 1,099,888 BNB, equal to $595,314,380 worth of tokens. This was Binance’s fifteenth quarterly BNB burn, and in terms of cash, it was the biggest one yet.
In fact, the previous weekly development report painted a bullish scenario on looking into key metrics for the BNB chain.
As per this, in a week, BNB registered more than 2.65 million weekly users with more than 20 million weekly transactional counts.
In addition, Binance’s NFT marketplace gave fruitful results as well to support the aforementioned bullish insights.
As stated by BSC News on the social media platform, five collections stood at the top by the daily sales volume.
Thanks to data from @Element_Market, we are presenting the top #NFT collections by the daily sales volume 📊
Which of these do you own?@SpaceIDProtocol @amazyio @RadioCacaNFT @Era7_official#BNBChain #BNB #NFTs #CryptoNews pic.twitter.com/gAVUP7xaDB
— BSC News (@BSCNews) August 28, 2022
Sensing the same, dominant buyers too fancied the token. As reported before, over the last seven days, significant growth in the activities of the whales holding between 100,000 to 1,000,000 BNB tokens was visible.
Their holdings grew by 6.749% of the coin’s total supply as per the report.
Expanding my backyard
But again, it all came done to price. BNB hasn’t been on an upward streak for a long now. However, the network received an important upgrade that can be expected to give a boost to BNB’s price action.
The BNB Smart chain upgrade might not have an immediate, direct impact on BNB’s demand or performance.
However, efficiency improvements may help the network remain competitive and support the improved user experience.