- BNB Chain, facing intense competition and market volatility, has taken the third place in terms of Total Value Locked (TVL).
- There has been a decrease in BNB’s TVL in 2023. BNB Chain’s TVL has experienced a slight decrease of 3.2% since the beginning of the year.
- The Market Value to Realized Value (MVRV) ratio, which indicates that the majority of BNB holding addresses are at a loss, shows that there is less selling pressure on BNB.
BNB has suffered a major blow after SEC’s actions against Binance exchange, but it continues to maintain its position among DeFi protocols.
BNB Ecosystem Solidifying Its Position
The lawsuit filed by SEC against Binance exchange and its founder CZ has negatively affected both the protocol and the token. However, the BNB ecosystem has shown resilience and maintained its dominance in the industry.
BNB Chain, facing intense competition and market volatility, has taken the third place in terms of Total Value Locked (TVL). In particular, BNB Chain ranks third among blockchain ecosystems with TVL exceeding 100 million dollars. This further highlights how it has survived despite market uncertainty.
A significant portion of the contribution to TVL comes from DeFi dApps on the BNB network. All of the top five protocols on BNB Chain belong to the DeFi sector, representing an impressive 69.8% of the total TVL.
However, there has been a decrease in BNB’s TVL in 2023. BNB Chain’s TVL has experienced a slight decrease of 3.2% since the beginning of the year. This decrease is attributed to the decrease in TVL on Pancake Swap and Wombat, indicating an ongoing adjustment process for BNB’s dApps.
While BNB’s DeFi sector is relatively unaffected by market uncertainty, the same cannot be said for the price of BNB token.
BNB Prices Continue to Decline
The price of BNB token has decreased by 26.16% since May 29. It also showed a downward trend until testing the support level of $219.9 on June 10. After that, BNB entered a consolidation period and fluctuated between the levels of $257 and $219.
In the past few days, the Relative Strength Index (RSI) and Chaikin Money Flow (CMF) have been quite high. This indicates that momentum and money flow are currently in favor of bulls. Although a bullish trend has not been established yet, there may be a chance for an upward movement in the future if the price retests and weakens the $257 level.
Additionally, the Market Value to Realized Value (MVRV) ratio, which indicates that the majority of BNB holding addresses are at a loss, shows that there is less selling pressure on BNB. This indicates that there is currently less selling pressure on BNB.
