BNB bull flag and blockchain DApp activity hint at price recovery

Jan 26. 2024

By Nancy Lubale

BNB (BNB🔺 $305), the native token of BNB Chain, began a recovery on Jan. 26, rising by 3% to reclaim the $300 level. Although BNB remains weak, the ongoing recovery is backed by increasing network activity.

BNB/USD daily chart. Source: TradingView

New Binance launchpad product and a surge in DApp activity

A significant portion of the BNB token’s value comes from reduced trading fees and exclusive launchpad offers and services from Binance.

A recently launched “dual investment” product from Binance could add to BNB’s volumes, which have exceeded $998 million over the last 24 hours.

One way to determine the health of a blockchain ecosystem is to compare how the network performs against competing chains.

Top blockchains by DApps 7-day volumes, USD. Source: DappRadar

Notice that Ethereum and its layer-2 scaling solutions remain unchallenged in terms of DApp volumes, accumulating over $31.73 billion in the past seven days, with Ethereum’s nonfungible token (NFT) volume at $226 million. In contrast, BNB Chain amassed $3.82 billion in DApp volumes, but its NFT volume surged 11% over the same period to $864.93 million.