Increasing Trading Volumes in BNB Coin
The trading volume of Binance Coin (BNB), the native cryptocurrency of the Binance exchange, has reached nearly a month’s high. According to data from on-chain analytics platform Santiment, the trading volume of BNB reached $883.77 million on July 11th, indicating increased interest in BNB. However, the renewed interest in BNB is not limited to swaps between wallets.
The derivatives market also highlighted that the growing interest is not limited to spot trading. For example, the Open Interest (OI) in BNB on exchanges has been increasing since July 7th. Open Interest measures the total number of contracts held by participants at the end of a trading day, determining market sentiment and the strength behind price movements. When this indicator decreases, it signifies liquidation and the abandonment of positions by many participants.
However, the increase in Open Interest in BNB implies that traders are not unaffected by the price movements of BNB. As a result, BNB has witnessed impressive capital inflows into the futures and options markets.
Furthermore, the 24-hour active addresses of BNB followed the same trend as Open Interest and trading volume, reaching 120.47 million as of July 6th. The increase in active addresses indicates more participants engaging in successful transactions. Therefore, BNB may have a significant level of utility within its underlying network.
High Number of Addresses in Loss for BNB
The increasing participation and interest in BNB did not have a significant impact on liquidation. According to the data at the time of writing, the total liquidation amount for BNB on July 11th was below $230,000, with most of it coming from short positions. However, the absence of widespread liquidation indicates that many traders are predominantly holding long positions in BNB.
Meanwhile, the profitable on-chain transaction volume for BNB was 11,200, while the unprofitable on-chain transaction volume was 89,600. These metrics are based on Santiment’s data for the first week of June.
These metrics, while tracking profitable or contrasting movements in transactions, indicate that BNB may not have delivered positive outcomes for many investors for a period of time.lumes in BNB Coin
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