BNB Chain Sees 42% dApp Volume Surge Amidst Growing Daily Active Addresses and Potential Network Upgrade

• The BNB Chain has seen a remarkable surge in dApp volumes, reflecting a growing user base and potentially boosting Binance Coin’s market performance.

• The daily active addresses on BNB Chain have surpassed 5 million, signaling a pivotal shift in network activity as it overtakes Solana in terms of engagement.

• “The upgrade is in the works,” said former Binance CEO Changpeng Zhao, suggesting that forthcoming enhancements could further elevate network capacity and performance.

BNB Chain’s user engagement skyrockets, achieving 5.1 million daily active addresses. A network upgrade is anticipated to bolster Binance Coin’s market standing.

BNB Chain’s daily active addresses hit 5M

Recent data from TokenTerminal reveals that the number of daily active addresses on BNB Chain has reached 5.1 million, placing it ahead of Solana’s 4.2 million. This growth not only positions BNB Chain as a leading network among layer one and layer two platforms, but it also indicates a burgeoning interest in its decentralized applications (dApps).

Source: TokenTerminal

An increase in active addresses signifies not just the number of participants on the network, but also an uptick in demand for BNB, as users engage with various applications.

Additionally, Zhao’s recent hints at an impending BNB Chain upgrade suggest further enhancements aimed at increasing network performance and user experience.

Rising network activity could fuel the rally

Data from DappRadar indicates a 42% surge in dApp volumes on BNB Chain in the past month, culminating in $52 billion. Concurrently, the network has witnessed a 43% increase in transaction counts, reaching 21 million. This heightened activity not only signals an increasing interest from developers and users alike but also points to a thriving ecosystem characteristic of strong growth potential.

Moreover, data from DeFiLlama highlights a gradual increase in stablecoin market capitalization, now approaching $7 billion. The Total Value Locked (TVL) in BNB Chain has also rebounded, surpassing $6 billion after a dip, which reflects renewed investor confidence and demand.

BNB flips resistance at the 200-day EMA

On the trading chart, BNB exhibits bullish momentum, having flipped crucial resistance at the 200-day Exponential Moving Average (EMA) of $622. Accumulating buying pressure has led to six consecutive days of positive volume, a strong indication of market interest. Traders view a successful retest of this level as a potential precursor for a rally towards the next resistance mark at the 50-day EMA of $657.

Source: TradingView

Despite this bullish signal, the Relative Strength Index (RSI) remains under 50, suggesting that additional demand is essential to maintain this upward trajectory.

Long/Short Ratio shows mixed sentiment

Interestingly, despite the overall optimistic network activity and price movements, the Long/Short Ratio sits at 1.03, reflecting a hesitancy among long traders. Currently, trader participation shows a close split, with 50% taking long positions and 49% opting for short.

Source: Coinglass

This neutral market sentiment could lead to reduced volatility, maintaining stability as traders await further developments in the BNB Chain ecosystem.

Conclusion

The recent uptick in BNB Chain’s activity and functionality presents a compelling case for interest in Binance Coin. With network upgrades on the horizon and significant user engagement, the potential for price appreciation remains robust. However, cautious trading sentiment indicates a need for continuous observation of market dynamics, particularly regarding long and short trading behaviors that could influence future price actions.