BNB Chain Outperforms DOGE, XRP With 35% Open Interest Surge

Traders have been adding to positions in the native token of $BNB Chain, which has seen open interest climb as much as 35%.

According to CoinGlass data, $BNB's open interest is up 35% in the last 24 hours to $1.43 billion. The open interest surge outperforms that of major cryptocurrencies Dogecoin (DOGE) and $XRP in terms of percentage increase. The latter were unchanged in their open interest over the last 24 hours. Dogecoin's open interest was down 0.01% while $XRP fell 0.56% in the same metric.

The surge in open interest for $BNB also coincides with a spike in derivatives market activity even as other major cryptocurrencies saw their trading volumes fall. $BNB's volume in the derivatives market rose 270% in the last 24 hours to $5.18 billion, according to CoinGlass data.

$XRP's volume fell 55% in the derivatives market to $1.39 billion, while Dogecoin saw a similar drop, down 52.39% in the last 24 hours to $720 million.

$BNB gains attention

The increase in open interest for $BNB signals an increase in inflow of capital into $BNB-linked futures and perpetual contracts. This coincides with a $BNB price increase in the last 24 hours, with the cryptocurrency outperforming the top 5 in daily and weekly gains.

At the time of writing, $BNB was up 7.35% in the last 24 hours to $722 and up 10% weekly, even as major cryptocurrencies Bitcoin and Ethereum recorded weekly losses of nearly 5%.

The increase in open interest suggests that traders are positioning themselves for potential volatility. This expectation follows as $BNB secured its first US exchange-traded fund (ETF) offering spot exposure in the US, launched by VanEck and trading under the ticker VBNB on Nasdaq. The next trending move is expected to start on a close above $687 or below $570. Until then, $BNB might continue to trade in a range.

A close above $687 might signal the start of a new uptrend toward $730 and then $790.