The BNB price has entered a bear market after falling 21% from its year-high. Binance Coin was trading at $1,078, a few points above the 50-day moving average, as data shows that its transactions are soaring.
BNB Chain Transactions are Skyrocketing
Nansen data shows that the number of transactions on the BSC Chain has continued to rise over the past few weeks, making it one of the most active chains in the crypto industry.
The network, launched by the world’s leading exchange Binance, processed over 578 million transactions in the last 30 days, a 137% monthly increase.
This jump occurred as the number of active users rose to 38 million and network fees exceeded $70 million. As such, despite its low transaction costs, BSC has become one of the most profitable networks in the industry.
Soaring fees on the BSC Chain are beneficial to the token as they boost the real-time burn rate, which has jumped in the past few months. It burned 683 BNB tokens, worth $736,000, over the last seven days. That has brought the cumulative token burns to over $298 million.
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More third-party data shows that the network has a large market share in key industries. It is the third-biggest chain in the decentralized finance industry with a total value locked of over $12.4 billion.
The bridged TVL has jumped to $48 billion, while the stablecoin market cap has jumped to $14 billion. Data shows that the stablecoin transactions have jumped sharply in the last 30 days.
The BNB price has also crashed despite Donald Trump’s recent pardon of Changpeng Zhao, which has triggered an investigation by congressional Democrats.
Precisely, they argue that CZ bought the pardon by creating the USD1 stablecoin and holding over $2 billion of it. This stablecoin is now generating millions of dollars in interest for the Trump family.
BNB Price Technical Analysis
The daily timeframe chart shows that the BNB token has pulled back over the past few days, moving from a high of $1,375 to its current price of $1,078.
Still, on the positive side, the token remains above the 50-day Exponential Moving Average (EMA) and the important support level at $1,000.
Therefore, there is a likelihood that it may bounce back and possibly retest the year-to-date high of $1,375. A move above that level will signal further gains, potentially to the psychological level at $1.500.
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