The Binance Coin price popped by more than 10% on Wednesday as cryptocurrency prices and DeFi volume stabilized. The BNB token is trading at $370, which is about 16% above the lowest level this week. It has a market capitalization of more than $62 billion and is the 5th biggest cryptocurrency in the world.
BNB rockets higher
Binance Coin is the native token for the Binance Smart Chain (BSc) ecosystem. The BSc, is a network that is relatively similar to Ethereum in that it forms a foundation for people to build decentralized applications.
Through the platform, developers can build products like Decentralized Finance (DeFi), games, and other Decentralized Autonomous Organizations (DAO).
Binance Smart Chain has more than 100 DeFi platforms in its ecosystem. This makes it the second one after Ethereum that has more than 238 of them. The total value locked (TVL) of all DeFi platforms in Binance has risen to more than $18 billion, which is substantially lower than Ethereum’s $123 billion.
Some of the biggest DeFi platforms built using Binance’s ecosystem are PancakeSwap, Venus, Tranches, and Alpaca Finance. Their TVL has remained relatively stable in the past few months amid the ongoing crypto sell-off.
The Binance Coin is also used as the native token for users in Binance trading platforms. Holders of the token gets preferential fees and more bonuses. In the past 24 hours, the overall volume of cryptocurrency transactions in the network has jumped to more than $17 billion. This is a substantially higher volume than Coinbase and FTX’s $3.1 billion and $2.1 billion, respectively.
Binance Coin price prediction
The four-hour chart shows that the BNB price has been in a major bearish trend in the past few weeks. The price has dropped by more than 28% from its highest level in September. It has also formed a descending channel that is shown in purple.
The price is currently slightly below the upper side of this channel. At the same time, the coin has moved above the 25-day and 50-day exponential moving averages (EMA) while the MACD has maintained a bullish trend.
Therefore, while today’s rebound was positive, I suspect that a bullish breakout has not yet happened. Such a breakout will be confirmed if the price manages to move above the upper side of the descending channel.
