- BNB’s usage increased as transaction fees and transaction count both rose over the past 24 hours
- Traders on Binance and OKX turned bullish, anticipating a rally for the asset
BNB recorded a modest hike of 2.02% on the charts, all while the broader crypto market rose within a similar range – Gaining by 2.70%. In fact, the altcoin index climbed to 29%, according to CoinMarketCap.
An analysis of several on-chain metrics revealed that BNB’s press time gains were minimal though, when compared to its potential and based on the hike in network activity. In fact, the path to higher gains on the charts may not be without obstacles.
BNB’s usage is surging – Why?
BNB has seen significant usage over the past 24 hours, especially as user activity surged.
During this period, the volume of BNB used to facilitate transactions rose by 17%, with 671 BNB—worth approximately $451,000—utilized.
Source: BSCscan
This fee surge can be linked to the rising transaction count, with the same climbing significantly. In the last 24 hours alone, 13 million transactions were finalized.
If transaction activity continues to climb, more BNB will circulate in the market, potentially positioning the asset for a rally.
AMBCrypto’s analysis also showed that while greater trading activity supported a potential rally, spot retail investors were bearish at press time.
Source: Coinglass
These investors have taken a negative position lately, selling $2.87 million worth of BNB – A move that has limited price gains.
Spot investors play a major role in price movements. If they continue to sell, BNB’s potential upside will likely face significant limitations.
OKX, Binance, and Options traders attempt a push
Futures traders on Binance and OKX adopted a bullish outlook. This, despite the broader derivatives market—based on aggregate exchange volume—leaning bearish.
Analysts used the long-to-short ratio to assess market sentiment. A ratio above 1 indicates more buyers than sellers, while a ratio below 1 indicates more sellers than buyers.
At the time of writing, the ratio stood at 1.83 on Binance and 1.29 on OKX, confirming more buying activity than selling.
In fact, top traders on Binance have maintained a strong bullish postion, keeping the buying volume at 1.09.
Source: Coinglass
While the Futures market has remained subdued, the Options market will continue to see positive signals and buying momentum. Consider this – Over the past 24 hours alone, Options volume rose by 43.57% to $721,000, with Open Interest climbing to $10.01 million.
Together, these positive developments hinted at the cumulative performance of the Options market and by extension, the likelihood of a price rally.
