🌎 Binance Coin Rises for Fifth Day Amid Increased On-Chain Activity

Binance Coin has experienced a significant rise for the fifth consecutive day, driven by increasing on-chain activity, including a rise in active addresses and transactions within the network.

Binance Chain Active Addresses Are Rising

Binance Coin (BNB) surged to an intraday high of $545, marking its highest level since August 27 and a 15% increase from its lowest point this month. This represents a 36% rise from its August lows.

BNB’s recovery aligns with the performance of other cryptocurrencies. For instance, Sui increased by 15.64% to its August 24 highs, while Popcat and BinaryX (BNX) also reached their highest levels in weeks.

The price increase in BNB is largely driven by on-chain metrics. The number of active addresses rose by 4% in the last 24 hours to 925.7k, and transactions increased by 15% to 4.2 million. These transactions hit their highest level in almost a month.

However, when looking at the bigger picture, the data shows that on-chain transactions and active addresses have not been performing as well. The number of active addresses peaked at 3.58 million in December, indicating a drop of over 75%.

The number of transactions also saw a peak at 4.8 million in August but has since decreased by over 75%. Additionally, BNB Smart Chain’s fees have been on a downward trend, falling from over $1.5 million in April to $372,000.

More data indicates that the total value locked (TVL) in the BNB Chain’s DeFi ecosystem stands at over $4.4 billion, with Venus, PancakeSwap, and Lista DAO being the largest applications. The TVL has decreased from over $5.8 billion earlier this year.

BNB Chain DEX platforms managed over $3.6 billion in assets in the last seven days, making it the fourth-biggest chain after Ethereum, Solana, and Arbitrum.

Another potential risk for Binance Coin is its concentration of ownership. The top ten entities hold 75.6% of all tokens, which could pose issues if these entities decide to sell.

BNB Price Chart Analysis

The daily chart shows that Binance Coin has formed an inverse head and shoulders pattern, a rare bullish signal. The recent rebound was part of the right shoulder.

BNB has moved above the 50-day moving average and the 38.2% Fibonacci Retracement point, while the Relative Strength Index (RSI) has crossed the neutral point at 50, indicating increasing momentum.

Therefore, BNB may continue to rise as bulls target the head-and-shoulders pattern’s neckline at around $600.