- Large addresses began staking massive amounts of BNB.
- Trader sentiment around turned bullish as long positions grew.
The Binance [BNB] network witnessed significant turbulence in the past due to regulatory scrutiny faced by Binance. However, as things have cooled down on this front, interest in the BNB token has seen a resurgence.
A lot at stake
According to Lookonchain’s data, DWF Labs recently withdrew 8,000 BNB, valued at $4.85 million, from Binance and staked it in ListaDAO. By staking their tokens, DWF Labs is taking it out of circulation for a period of time.
This can reduce the overall supply of readily available BNB, potentially putting upward pressure on the price. Additionally, staking often comes with rewards, which incentivizes holding onto the token.
Source: X
However, not all was positive for BNB on the staking front.
The reward rate and annualized fees for BNB fell significantly in the last few days. This meant that the amount of BNB received for staking and the overall annual percentage return (APR) have decreased recently.
So, staking BNB may become a less attractive option for some investors seeking higher yields.
Moreover, the inflation rate for BNB staked grew, which indicated that the rate at which new tokens were being created through staking had increased. This can dilute the overall value of existing tokens.
Source: Staking Rewards
State of the ecosystem
Coming to the state of the Binance network, it was seen that the number of active users on the network had fallen by 16.7% in the last 30 days. The revenue had also declined by 38.5%, per Token Terminal.
If activity on the ecosystem continues to decline, it could cause serious problems for both the Binance network and its token in the future.
Source: Token Terminal
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At press time, BNB was trading at $602.55 and its price had grown by 0.16% in the last 24 hours. The sentiment around the token had started to turn bullish as well.
AMBCrypto’s look at Coinglass’ data indicated that the percentage of long positions taken for BNB had surged from 46% to 50.5% at press time.
Source: Santiment