- Band Protocol price has been in a strong bearish trend.
- The network made a major V2.4 upgrade.
Band Protocol price crashed to the lowest level since November 10 even after a major protocol happened. BAND plunged to a low of $1.56, which was about 25% above the lowest level this month. The price is still about 55% below the highest level this month.
Band V2.4 upgrade
Band Protocol is a leading blockchain project that is in the oracle subsector. A blockchain oracle is a platform that makes it possible for developers to integrate off-chain data to on-chain. They are mostly used in the DeFi industry.
Band Protocol operates in a relatively competitive industry. Some of the biggest competitors are firms like Chainlink, WinkLink, and Maker.
The oracle sector has been under pressure in the past few months because of the collapse of the DeFi industry. According to DeFi Llama, the total value locked (TVL) in DeFi dropped from more than $150 billion to just $40 billion.
Therefore, there are concerns about the overall utility value of oracles now that the industry is fading. Band Protocol has seen the total value secured (TVS) in its network has dropped to about $3 billion from an all-time high of over $7 billion.
BAND price also declined even after the developers launched a major upgrade, the V2.4. The upgrade, known as Bandchain, introduced the concept of metering middleware from Wasner. Its goal was to increase the total throughput of the network by at least 10x.
This speed increase came from reducing the required gas by decreasing the required work range threshold when calculating the required gas for particular work.
Bandchain also increased request throughput by increasing block gas limit. It also supports state sync and introduced interchain account. The upgrade came a few months after the network launched Band VRF, which addresses key challenges in blockchains.
BAND price has therefore dropped because the upgrade was being anticipated by the market. At the same time, worries of the future of the crypto industry.
Band Protocol price forecast
The four-hour chart shows that the BAND price has been in a downward trend in the past few days. It has managed to move below the 50-day moving average and the Volume Weighted Average Price (VWAP). The Relative Strength Index (RSI) and the Stochastic Oscillator have continued dropping.
Therefore, the path of the least resistance for Band Protocol is lower, with the next key support level being at $1.324, which was the lowest level on November 9.
