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- Binance is set to launch a BNB rebalance, but will it be enough to curb the gradual decline in TVL?
- A summary of the BNB chain’s network performance and how it reflected BNB demand.
BNB Chain’s native coin, Binance Coin [BNB]recently entered a swing low that could lead to another rally in the medium to long term. However, it will need to secure bullish momentum to the upside.
The latest announcement highlighted a move that could create near-term momentum. Not only that, but it may also provide enough momentum to break out of the current range.
The network recently announced plans to enter the resumption of the BNB.
BNB resumes means that holders betting on DeFi protocols can stake already staked BNB to pursue more rewards. In terms of potential impact, this move could encourage greater BNB engagement.
As a result, we may witness an increase in TVL in the coming months.
BNB Chain’s TVL has been on a downward trajectory since March. The network had a TVL of $4.215 billion at the time of writing.
Source: DefiLlama
BNB’s revival could be BNB Chain’s last attempt to curb TVL outflows. The network had a TVL of $5.8 billion at the height of the rally in March.
This was also in line with the overall state of the market, which had seen an erosion of confidence in recent months.
By allowing the BNB to resume, the TVL can begin its recovery. Additionally, this could encourage more BNB accumulation, which in turn adds to the cryptocurrency’s potential upside.
These results would be especially pronounced if the overall state of the crypto market improves.
The number of BNB chain transactions reflects…
BNB has also experienced lower organic demand across the chain as the market cooled over the past five months.
This is evident from the number of BSC network transactions, which dropped significantly between March and August.
Source: DefillLlama
BSC has recorded a significant increase in network transactions so far from its August low.
The number of daily on-chain transactions fell to 2.59 million transactions on August 18 and has since risen back above 3 million transactions at the time of writing.
Read Binance Coin’s [BNB] Price forecast 2024–2025
In terms of price action, BNB was exchanging hands at $512 at the time of writing, after experiencing a slowdown in the recent bullish momentum.
Notably, this occurred before the RSI could recover above the 50% level, indicating that bullish momentum had started weakly.
