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According to Artemis data, Binance’s BNB Chain decentralized exchange (DEX) trading volume has spiked beyond $700 million for the first time since May 2. This rise in DEX volume is indicative of heightened user activity and involvement on the BNB Chain network.
This climb in BNB Chain’s DEX volumes marks a reversal from the bearish slide that was noted in mid-April. During this period, the DEX volumes did not even surpass or touch the $1 billion mark, implying a possible slump in chain transactions.
The correlation between DEX volume and demand for its native cryptocurrency, BNB, is important. A higher DEX volume usually indicates increased participation on the network, which could mean that more people want to use the digital currency for transactions on the BNB chain called “BNB.” Conversely, low DEX volumes may indicate reduced transaction activities, resulting in lower demand for BNB.
At press time, BNB was valued at around $593.70, representing a slight 24-hour increase of 1.23%. If the upward trend of DEX volume on the Binance Coin Chain continues, it may increase the coin’s price. However, it’s important to note that this crypto hasn’t seen any significant buying pressure recently, which could impede a massive price rally.
According to findings, despite the recent increase in DEX volume, BNB on-chain volume has been dropping since May 10. This divergence between its DEX volumes and its total on-chain volumes raises questions about how long these increases will last.
In general, rising volume and prices indicate the continuance of an upswing, but this is not the case for BNB. A scenario in which prices rise while on-chain falls may indicate weakness in the uptrend. In this situation, prices may break through the support zone near the $580 level.
Another important statistic is total value locked (TVL), which measures network health and trust. A high TVL indicates that market participants are staking or locking their assets on a system for higher returns. Some assets have been withdrawn as TVL drops, perhaps due to insufficient faith in the protocol’s capacity to deliver attractive returns.
DeFiLlama reported $61.2 billion for Binance Smart Chain TVL. A detailed study of chain processes shows significant TVL growth during the past week. This broad improvement across protocols shows that more people trust this chain and expect growth.
Despite the recent surge, the current TVL remains significantly below its peak levels from earlier this year. As per the BNB forecast, it must cross $10 billion in TVL to attain its future value of $1k, among other prerequisites.
Total Value Locked, or TVL, is a useful metric, but it’s crucial to remember that many other factors affect cryptocurrency pricing outside the amount of money “locked” in a particular network. When discussing potential trajectories for BNB and other cryptocurrency prices, we must consider economic conditions, regulatory changes, and market mood.
The BNB Chain’s recent trading volume growth indicates increased user participation. However, the difference between DEX volume and on-chain volume, as well as lower TVL levels than predicted, raise concerns about the sustainability of this rally. When making financial selections, it is critical to perform extensive research, evaluate a variety of criteria, and exercise caution.