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Crypto - BNB Chain in turmoil! Here's why!

Wed 17 Apr 2024 ▪ 3 min of reading ▪ by Eddy S.
Regulation Crypto

The BNB Chain cryptocurrency network has shown impressive results in recent months. However, it quickly finds itself at a dead end. Analyses reveal a sharp decline in its revenue due to several factors. Let’s explore the reasons for this sudden turmoil.

Crypto BNB

Crypto – BNB Chain collapses! Why?

The main driver of BNB Chain’s revenue is related to cryptocurrency transaction fees. Thus, the stronger the demand for the network’s assets, the higher the revenue can grow. However, it seems that activity on the network has recently experienced a significant slowdown. 

Indeed, crypto data from Artemis reveals that the revenue recorded on April 15th was only $62,500, one of the lowest levels seen since February. This decline is likely explained by a decrease in trading volume on the network’s decentralized exchanges (DEXs). While this volume exceeded $2 billion in March, it failed to surpass $1.5 billion in April.

Furthermore, the price of the BNB token, which represents the native cryptocurrency of the Binance network, also fell by 6.72% in the last 24 hours. This price drop directly impacts the revenue from transaction fees, thus explaining the observed downturn.

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Investor sentiment is down

Beyond these aspects related to the network’s activity, investor sentiment also appears to play a role in this situation. Indeed, data from Santiment shows that the “Weighted Sentiment” around BNB is currently negative, at -0.34.  

This means that the overall perceptions around the token are quite bearish at the moment. Similarly, BNB’s social dominance has declined, suggesting that discussions about this cryptocurrency are less prominent compared to other assets in the top 100.

The situation of the BNB Chain cryptocurrency network thus appears to have deteriorated in recent weeks, with a significant drop in its revenue. This decline is the result of a combination of factors, from the decrease in network activity to a rather gloomy investor sentiment.

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Eddy S. avatar
Eddy S.

Le monde évolue et l'adaptation est la meilleure arme pour survivre dans cet univers ondoyant. Community manager crypto à la base, je m'intéresse à tout ce qui touche de près ou de loin à la blockchain et ses dérivés. Dans l'optique de partager mon expérience et de faire connaître un domaine qui me passionne, rien de mieux que de rédiger des articles informatifs et décontractés à la fois.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.