The Binance Coin price is under pressure as the cryptocurrency sell-off accelerates. The BNB coin is trading at $533, which is about 23% below the highest level this year. Its total market capitalization has dropped to more than $88 billion, meaning that it has already erased more than $20 billion in value.
BNB is in a sell-off
Binance is the biggest blockchain company in the world. The company handles triple the amount of cryptocurrencies that Coinbase handles every day. And Coinbase has a market capitalization of more than $54 billion.
Binance offers a number of services. For example, it offers a cryptocurrency exchange where buyers can buy and sell hundreds of coins. It also owns a non-fungible token (NFT) marketplace and a yield product.
One of its biggest divisions is known as the Binance Smart Chain (BSc). BSc is a blockchain project that is relatively similar to Ethereum and Solana. It simply enables developers to build decentralized applications (DAPPs) and decentralized organizations (DAOs).
The BSc has become the biggest Ethereum-killers in the industry. According to DeFi Llama, there are more than 200 DeFi platforms built on the Binance Smart Chain. In comparison, Ethereum has more than 343 coins that have a total value locked (TVL) of more than $175 billion.
Some of the biggest DeFi projects built on the BSc are PancakeSwap, Venus, and MDEX. Perhaps, the biggest BSc platform is the Binance USD (BUSD), which is a stablecoin that has a valuation of more than $13 billion. BNB is also used for transactions in the Binance marketplace.
The Binance Coin price has declined in the past few weeks because of the overall bearish trend in the cryptocurrency industry. This is mostly because of the rising fears that the Federal Reserve will tighten the monetary policy.
Binance Coin price prediction
The daily chart shows that the BNB price has been under pressure in the past few days. The coin has struggled to move above the all-time high of $702. As a result, it is along the 25-day and 50-day moving averages (MA).
Still, the Binance Coin price remains slightly above the ascending trendline that is shown in black. This line connects the lowest levels since May this year.
Therefore, there is a likelihood that the BNB price will rebound soon. If this happens, the coin will likely retest its highest level this year.
If you want to trade cryptocurrencies, you might be interested in automated cryptocurrency trading robots such as Bitcoin Profit, Bitcoin Revolution and Bitcoin Trader.
Contributors
