- Binance Coin price pulled back on Monday as cryptocurrencies dropped.
- BNB Smart Chain has weathered the ongoing storm better than expected.
Binance Coin price retreated to the lowest point since Wednesday amid rising concerns about cryptocurrencies. It also dropped despite new actions by Binance to support the crypto industry. BNB slipped to $287, which was about 9.12% below the highest point this month.
Binance commitments to crypto
The collapse of FTX has been the most important stories in the cryptocurrency industry this year. As the second-biggest crypto exchange in the world, its collapse is having significant implications.
For example, several hedge funds have announced exposure to the company. Further, Genesis, a leading crypto lender, has suspended deposits and other operations. This is a notable thing since Genesis is owned by Digital Currency Group (DCG), a company that owns hundreds of other crypto firms.
Binance has taken a leading role to safeguard the crypto industry. In a statement, Changpeng Zhao, the founder of Binance, said that his firm will commit $2 billion in a crypto recovery fund. The funds will go towards rescuing crypto companies that are struggling.
Find out how to start Binance Coin.
Already, 150 companies have applied for the funds. Analysts expect that Binance will first rescue promising companies in its ecosystem. For example, DeFi platforms like Alpaca Finance, BiSwap, and PinkSale have shed over 20% of TVL in the past few days.
Still, the BNB price has done better than other coins in the past few weeks. This is partly because its ecosystem seem to be weathering the storm better than other companies. For example, the total value locked (TVL) has dropped by just 4% in the past 30 days and gained by 12% in the past seven days. In contrast, Ethereum, Avalanche, and Optimism have shed over 20% of TVL in the past 30 days.
Similarly, the number of unique buyers of Binance NFTs rose from 17,220 in October to 52,368 this month. Unique sellers have dropped from 9,415 to 7,932. Still, the total volume of traded NFTs has dropped by more than $2 million.
Binance Coin price forecast
The four-hour chart shows that the BNB price dropped to a low of $250 this month. It then made a strong comeback and soared to a high of $317. Before its rebound, the coin had made a falling wedge pattern, which is usually a bullish sign.
Binance Coin moved slightly below the 38.2% Fibonacci Retracement level. It also declined below the 25-day moving average while the MACD tilted downwards. Therefore, the coin will likely continue falling as sellers target the key support at $265.
