The Lawsuit Impact on BNB Ecosystem
The lawsuit filed by the SEC against Binance exchange and its founder CZ has had a negative impact on both the protocol and the BNB token. However, despite the challenges, the BNB ecosystem has demonstrated resilience and continues to dominate the industry.
BNB Chain’s Position in Total Value Locked (TVL)
Despite facing intense competition and market volatility, BNB Chain has secured the third position in terms of Total Value Locked (TVL). Specifically, BNB Chain ranks third among blockchain ecosystems, with TVL exceeding $100 million. This achievement underscores the ecosystem’s ability to survive amidst market uncertainty.
DeFi’s Contribution to BNB Chain’s TVL
A significant portion of the TVL on BNB Chain can be attributed to DeFi dApps operating on the network. The top five protocols on BNB Chain all belong to the DeFi sector, collectively representing an impressive 69.8% of the total TVL.
Decrease in BNB’s TVL
However, there has been a slight decrease in BNB’s TVL in 2023. BNB Chain’s TVL has experienced a 3.2% decrease since the beginning of the year. This decline is primarily attributed to the decrease in TVL on Pancake Swap and Wombat, indicating an ongoing adjustment process for BNB’s dApps.
Declining BNB Prices
The price of the BNB token has witnessed a decline of 26.16% since May 29. It continued to exhibit a downward trend until it tested the support level of $219.9 on June 10. Following that, BNB entered a consolidation period, fluctuating between the levels of $257 and $219.
In recent days, the Relative Strength Index (RSI) and Chaikin Money Flow (CMF) have shown considerable strength. This suggests that momentum and money flow are currently favoring bulls. Although a definitive bullish trend has not yet been established, there may be potential for an upward movement if the price retests and weakens the $257 level.
In addition, the Market Value to Realized Value (MVRV) ratio indicates that a majority of BNB holding addresses are currently at a loss. This implies that there is less selling pressure on BNB at the moment.
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