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Despite regulatory approvals to resume USD services, Binance Coin (BNB) shows weak market activity, raising questions among investors.
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While the reopening of USD deposits is expected to boost liquidity, BNB’s sluggish performance suggests a disconnect between regulatory changes and market response.
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“Following the announcement, liquidity inflows into the BNB ecosystem remained low, reflecting weak investor engagement,” reports COINOTAG.
Binance Coin (BNB) struggles despite new USD services; market activity remains low, indicating investor skepticism and highlighting current trading challenges.
U.S. reopens USD services for Binance.US
Binance.US, the U.S. arm of Binance, has gained regulatory approval to re-establish USD deposit and withdrawal services, effective from February 19, 2025. This marks a pivotal moment for the exchange, previously stalled under the Biden administration due to intensified scrutiny from the Securities and Exchange Commission (SEC).
This reopening allows eligible customers to transfer funds, access USD trading pairs, and purchase cryptocurrencies with fiat currency. Initially, Binance.US will support only 10 USD trading pairs, including BNB/USD.
Typically, this kind of regulatory green light would suggest a forthcoming increase in liquidity and trading volume, with U.S. investors expected to augment their BNB holdings. However, current metrics tell a different story.
Notably, BNB’s trading activity remains subdued, with the coin facing declining prices despite the positive regulatory developments. Following the announcement, the total value locked (TVL) in BNB’s ecosystem showed only a minor uptick—from $5.502 billion to $5.527 billion—indicating a sluggish response from investors.
Source: DeFiLlama
Trading activity and engagement remain low
Data emerging from Artemis illustrates persistent low trading engagement for BNB, indicating that investor confidence has yet to rebound. Notably, from February 15 to February 19, daily active addresses have marginally increased from 1 million to 1.3 million. However, this uptick, along with an increase in daily transaction volume from 4.8 million to 5.6 million, has not been indicative of a broader market rally.
Source: Artemis
Despite these signs of potential growth in address and transaction numbers, the lack of significant price movement demonstrates that overall investor sentiment remains cautious, preventing BNB from breaking out of its current plateau.
Conclusion
In wrapping up, the recent reopening of USD services for Binance.US has not yet translated into an increase in BNB trading activity. Investor skepticism remains high, as evidenced by the muted market response and a stagnant price trajectory. Moving forward, BNB’s future performance will heavily depend on wider market conditions and investor confidence.
