Newton Gitonga
Binance Smart Chain has surpassed Solana in decentralized exchange trading volume for the first time.
With BSC solidifying its presence in the DeFi world, attention shifted to its native token – BNB.
Can the surged trading activity propel the native token past the sought-after $700?
Binance Smart Chain dominates DEX trading
DeFiLlama data shows BSC’s 24-hour trading volume surged to all-time highs of $1.64 billion on March 16.
That saw it eclipsing the dominant Solana- which had $1.08 billion daily volumes.
While BNB Chain’s trading volume increased by over 13% in the past week, Solana lost 28.88%, signaling a notable market shift.
Ethereum, Base, and Arbitrum saw their DEX trading volumes down 12%, 35%, and 30% in that timeframe.
Meanwhile, these shifts happen as Solana’s ecosystem struggles with dwindled meme token activity.
For instance, Solana’s meme token generator Pump.fun experiences faded activities.
Various events dented meme token optimism in the SOL ecosystem.
The LIBRA incident saw the crypto community losing confidence in Solana-based memes due to insider trading and scam allegations.
Solana’s top meme tokens, including TRUMP, ai16z, and FARTCOIN have declined by over 80% from their ATHs (according to CoinGecko).
These events have forced many enthusiasts to migrate to other platforms, including Binance’s Smart Chain.
On the other hand, Binance has seen increased meme token attention since its venture into themed cryptocurrencies.
MUBARAK and TaTaTu’s hype contributes to the prevailing increased activity on BSC.
BNB price action
The alt has also outshined Solana in price movements.
While SOL reduced its weekly gains to 1.70% after losing 4% in the past day, BNB soared 4.74% on its daily chart, extending 7-day returns to 13%.
Bullish developments such as MGX’s $2 billion investment in Binance kept the alt afloat over the past week.
BNB trades at $634, with the impressive 30% daily trading volume uptick signaling continued recoveries.
The alt displayed resilience despite broad market declines, gradually soaring from $511 on March 11 to press time levels.
The 1D Moving Average Convergence Divergence confirms the prevailing bull edge.
The robust upward crossover signals buyers’ return, which could catalyze extended recoveries.
Further, the daily Relative Strength Index recovered after approaching the oversold region.
The indicator rose from 31 on March 10 to 57 at press time, highlighting growing bullish prospects for BNB.
Binance Coin bulls will likely target $700 (in the near term) – a 10% increase from the current $634 price.
Nevertheless, cryptocurrencies have displayed wild volatility lately.
Bitcoin remains indecisive below $85,000. A massive broad-based selling wave will potentially postpone BNB’s anticipated surge.
Thus, enthusiasts should track broad market sentiments to determine Binance Coin’s possible short-term trends.
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