- BNB price has been in a tight range in the past few days.
- Its price has collapsed by more than 44% from its all-time high.
- BNB smart chain is losing market share from the likes of Terra and Solana.
The BNB price has been under intense pressure in the past few months as worries about the growth of its ecosystem and the strong competition. It is trading at $393, which is significantly lower than its all-time high of $712.
BNB Chain is losing share
The BNB coin is the native cryptocurrency for the BNB Chain, which is an Ethereum-killer that was developed by Binance, the biggest blockchain company in the world. The network is a smart contract platform that enables developers to build quality decentralized applications (dApps) like those in DeFI and NFTs. BNB Chain was previously known as the Binance Smart Chain.
Binance developed the chain to offer a better platform that solves some of the biggest challenges that Ethereum has. For example, it offers faster speeds and lower costs than Ethereum.
While the chain had some strong growth a few months ago, its platform has seen a significant drop in activity. This is mostly because other platforms that offer a better ecosystem have come up. For example, while BNB Chain has a transaction per second of about 65, platforms like Avalanche and Solana can handle more than 2,000 transactions.
One way to verify whether an ecosystem is growing is to check its performance in decentralized finance (DeFi). For a long time, Binance was the second-biggest platform in DeFi after Ethereum. Its total TVL surged to almost $20 billion.
Recently, however, it has been overtaken by Terra, which has become the second-biggest platform with a TVL of over $23 billion. At the same time, other platforms are closing in. For example, Avalanche now has a TVL of over $10 billion while Fantom has over $9 billion.
Cronos, which was unveiled a few months ago, has a TVL of over $2.67 billion. BNB is not doing well in the metaverse and NFT industry as well.
BNB price prediction
The daily chart shows that the BNB price has been in a tight range in the past few days. The coin is about 45% below its all-time high. It has moved to the 25-day and 50-day exponential moving average while the Average True Range (ATR) has moved to the lowest level since February 2021.
Therefore, there is a likelihood that the BNB coin price will have a bearish breakout as it continues to lose its market share. If this happens, the next key support level to watch will be at about $300
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