- Development activity and whale taker buys hinted at improving fundamentals
- Negative funding rates and long-heavy positions could raise short-term downside risks for BNB
Binance Chain [BNB] has been showing renewed strength after recent improvements, with faster block times, deeper utility, and growing ecosystem adoption. The Maxwell upgrade reduced block times to just 0.75 seconds, improving speed and reliability.
At the same time, over 5,600 DApps are now deployed on the chain, with the weekly DEX volume sitting at a strong $27.54 billion.
These network-level developments are building a stronger case for BNB’s utility. However, the key question is whether these changes will have an effect on the short-term price action.
Is developer interest returning as Binance boosts backend upgrades?
At the time of writing, Binance had temporarily suspended BNB Smart Chain (BEP20) transactions for one hour to perform scheduled wallet maintenance. While brief, the move is a sign of ongoing backend focus on stability and performance.
Additionally, development activity has started to climb again too, rising to 2.95 after hitting multi-week lows in late May. This uptrend could allude to a slow but steady return in developer contributions.
Therefore, paired with network upgrades like Maxwell, this could mark the beginning of a healthier growth cycle. Especially if developer activity continues its recovery in June.
Source: Santiment
Are retail traders growing more confident in BNB?
At the time of writing, retail traders on Binance appeared to be leaning bullish again. On 20 June, the long/short ratio stood at 1.74, with 63.45% of accounts positioned long on BNB. This underlined greater belief in a price rebound on the charts.
However, such a strong tilt towards long positions could also increase the risk of a sudden long squeeze if the price drops unexpectedly.
Therefore, while optimism has been growing among smaller traders, it remains to be seen whether it’s based on fundamentals or simply short-term sentiment following recent network improvements.
Source: Coinglass
Why are funding rates still negative despite bullish trades?
Although long interest has risen, funding rates have stayed negative on Binance, sitting at -0.007%. This suggested that short traders are still dominant in setting the cost of holding positions.
Therefore, despite growing retail interest in longs, leverage markets remain cautious. Such a disconnect between sentiment and funding could mean that traders are not yet fully confident in BNB’s near-term strength.
It also means any bullish push could face friction from broader market skepticism or volatility around Bitcoin and macro events.
Source: Santiment
Are large traders setting the tone for a breakout?
Finally, BNB Futures noted some early signs of strength from large traders. The average order size has remained high, hinting at steady whale activity. Moreover, taker buy volume seemed to be dominant – A sign of more aggressive buying pressure in recent trading sessions.
These indicators, together, pointed to growing confidence among professional or well-funded traders. However, this buying strength must hold over the next few days to confirm a shift in momentum.
If not, BNB risks falling back into consolidation or facing more downside pressure despite strong network upgrades.
Source: CryptoQuant
Can BNB’s growth translate into price gains?
BNB Chain is seeing clear progress on both utility and backend fronts, supported by rising DEX volumes and recovering development activity.
However, the price momentum still faces hurdles, including cautious leverage markets and the risk of long squeezes. If whale interest and taker buys persist, BNB may break out of its press time range.
However, until funding turns positive and development picks up more strongly, a major price shift will remain uncertain.
