Binance Coin Slides Under $220 – What Comes Next After Consolidation? – NewsBTC


Binance Coin (BNB) faced a weekend of market indecision, leading the altcoin into a range-trading scenario. The coin, which had dropped below the $220 mark on August 18, experienced fluctuations between the narrow range of $213 to $220 over the course of the weekend. 
As of the latest update, CoinGecko reported the current BNB price at $216, marking a 0.3% decline over the past 24 hours and a significant seven-day slump of 10%.

The past year has been marked by significant challenges for BNB, largely attributed to the regulatory uncertainties surrounding its parent company, Binance.
The situation escalated in June when the US Securities and Exchange Commission categorized BNB and its sibling token, Binance USD (BUSD) stablecoin, as securities within the context of its lawsuit against the cryptocurrency exchange. 
Despite vehement opposition from Binance and the exchange’s chief, the impact on BNB’s demand has been evident, with cautious investors steering clear of assets entangled in regulatory ambiguities.
Binance CEO Changpeng “CZ” Zhao recently took to the social media platform X (formerly Twitter) to address growing speculation that Binance was proactively shoring up BNB’s price to prevent it from dipping below $212. 
CZ refuted these claims, asserting that BNB’s price was, in fact, shaped by market forces. He challenged the notion of artificial price support and emphasized that the coin’s valuation was ultimately determined by its interaction with the open market.
This declaration marked an attempt to alleviate concerns that the exchange was manipulating the token’s price.
And where did the $212 magic number come from? #BNB price is determined by the market. A $30m re-buy is less than 4% of a single day’s volume. 🤷‍♂️
— CZ 🔶 Binance (@cz_binance) August 19, 2023
The decline in BNB’s price can also be attributed to diminished on-chain activity on the Binance Smart Chain, a prominent layer1 smart contract blockchain. Decentralized Finance (DeFi) activities have experienced a significant contraction, with the weekly exchange volume plummeting from its peak of $24.70 billion to a mere $2.34 billion, as per DeFillama data

Moreover, the total value of assets within the Binance Smart Chain ecosystem has dwindled by a staggering 87%, now resting at $2.84 billion, according to DeFillama’s statistics.
As BNB navigates these uncertain waters, traders and investors remain at a crossroads, carefully assessing the potential for regulatory clarity, market dynamics, and the revitalization of on-chain activities to influence the coin’s trajectory. 

The weekend’s range trading and the response from Binance’s CEO underscore the complexities of BNB’s journey, as it strives to regain its footing amidst a landscape marked by challenges and opportunities.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from Siam Blockchain
Christian is a former journalist and editor, as well as a layout design consultant, who previously held leadership positions at Sun.Star News Philippines and Ang Peryodiko News, a local daily in Manitoba, Canada. Alongside his passion for writing, he is an avid fan of cryptocurrency and works tirelessly throughout the week. When he’s not on his computer, you can find him tinkering with his old motorbike as a grease monkey, or lounging on the patio hammock while pondering about artificial intelligence and whether he’ll ever understand his cat’s thoughts and calmness.
NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.
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© 2023 NewsBTC. All Rights Reserved.


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