- BNB’s DEX volumes outperformed Ethereum, causing a surge in the network’s TVL.
- The price of BNB reacted positively.
The Binance [BNB] network has been one of the most popular protocols in the crypto space in terms of activity.
Despite this, in the last few months, other protocols have grabbed the market share from Binance, particularly due to rising DEX (decentralized exchange) volumes on their respective networks.
DEX volumes on the rise
However, in the last few days, the DEX volumes on the BNB network had surged materially, to the point that they had surpassed the DEX volumes on Ethereum [ETH].
Source: X
A surge in DEX volume can also attract more users to the Binance Smart Chain ecosystem.
This creates a network effect, where the growing user base makes the network more valuable and attractive to even more users. As a result, the BNB network’s TVL could also grow.
According to AMBCrypto’s analysis of Artemis’ data, the TVL of the BNB network had grown significantly over the last few weeks, reaching nearly $6 billion at press time.
Source: Artemis
Moreover, BNB is often the native token used for transactions on its network.
Higher DEX volumes translate to more trading activity, which in turn increases the demand for BNB to pay for gas fees associated with those trades. This can drive up the price of BNB even further.
How is BNB doing?
At press time, BNB was trading at $594.86, with its price having grown by 2.67% in the last 24 hours. The price of BNB had been trading between the $635.2 and $501.1 levels over the last few weeks.
After testing the $635.2 resistance level multiple times, in the past, the price of BNB is heading north in the resistance’s direction yet again after facing some corrections.
Read Binance Coin’s [BNB] Price Prediction 2024-25
If BNB retests this level, there may be potential for BNB to break past this level and reach its ATH of $690.93. For BNB to reach this level at the time of writing, it would need a price appreciation of 13.32%.
However, the CMF was relatively neutral at 0.07, indicating that there was little buying pressure for BNB observed at press time.
Source: TradingView
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