Could BNB’s Rising On-Chain Activity Signal a Potential Breakout?

Are we witnessing a significant uptick in BNB’s momentum, indicating a potential breakout ahead?

• BNB’s on-chain activity is booming, with a 50% surge in BSC DEX volume and a 53.4% jump in active addresses.

• Is the altcoin quietly building its fundamentals?

Binance Coin [BNB] showed impressive relative strength this week, slipping just 1.23% while broader market sentiment wavers.

Under the surface, BNB Chain [BSC] is flashing bullish signals. With fundamentals aligning, could this be the precursor to a significant breakout move?

Explore the recent surge in BNB’s activity and potential implications for upcoming market movements in the crypto space.

BSC volume spike fuels network momentum

On-chain metrics are lighting up as BNB Chain’s user activity explodes.

May closed out with BSC’s DEX volume blasting 50% higher to a staggering $178.22 billion, marking the biggest monthly surge in the chain’s history.

Source: DefiLlama

Compare it to other L1 heavyweights, and the difference becomes clear.

Ethereum [ETH] recorded just $70.24 billion in DEX Volume from the 1st of May to the 31st of May, while Solana [SOL] closed at $95.72 billion.

For context, a rise in DEX Volume is key as it reflects growing decentralized trading activity. In other words, it highlights expanding liquidity pools and heightened trading velocity.

Coupled with BNB Chain’s impressive 53.4% month-over-month growth in Active Addresses, it becomes obvious that liquidity is pouring in.

But where’s all this liquidity flowing? With volume shooting up, are traders quietly stacking BNB behind the scenes, gearing up for something big?

Signs pointing to stealthy BNB buy pressure

As highlighted by COINOTAG, Solana’s ‘hodler’ base showed signs of weakness, with increasing selling at a loss signaling eroding conviction.

In contrast, BNB hodlers remain largely in profit despite recent price corrections, reflecting stronger holding discipline.

In fact, BNB’s largest cohort, addresses holding over 10,000 BNB, grew by six in May alone.

Source: Glassnode

Since over 95% of BNB’s supply is held by whales, this kind of growing concentration is a solid bullish signal.

Why? It keeps the FOMO going, unlike Solana, which just took a hard 12% hit in a week.

Given these dynamics, it’s evident that liquidity is gravitating toward high-net-worth wallets, setting the stage for potential bull momentum.

So, once the FUD calms down, $700 feels like a reachable target pretty soon for BNB.

Conclusion

As BNB continues to strengthen its fundamentals and attract significant volume, investors should keep a close eye on this cryptocurrency. With strong holding discipline among hodlers and the overall rise in trading volume, BNB is positioned for potential upward movement. The dynamics suggest that, barring unforeseen circumstances, a bullish sentiment might be on the horizon.