Binance Coin (BNB) has had a solid first week of the year. The question remains whether it can continue amid the persistent negative news regarding crypto exchanges.
Crypto exchange tokens have come under fire recently following the FTX and FTT collapse. There is none bigger than BNB, which is the fifth largest with a market capitalization of $42 billion.
Despite the negativity, BNB continues to perform well having only lost 62.5% from its all-time high. That solid performance may be attributed to confidence in the company.
Furthermore, Binance has been publishing a steady stream of updates and reassurances this week.
Binance: Doing Right by the Customer
On Jan. 5, Binance published a roundup of findings from market research firms on its solvency and market standing. The research paints a positive picture of the world’s leading crypto exchange, which exclaimed:
“According to a handful of research reports that landed in the final days of 2022 and the first days of 2023, Binance’s overall standing is quite strong.”
‘A Long History of Doing Right by the Customer:’ Market Research Firms Weigh in on Binance’s Solvency and Market Standing | Binance Blog https://t.co/YYiXA7LXnb
— CZ ???? Binance (@cz_binance) January 5, 2023
Binance boss Changpeng Zhao also posted an update on the raft of new products and functionalities from the firm in 2022.
Aside from the fundamentals, BNB Chain activity has also remained stable over the past few months. According to BscScan, there are around 2.5 million daily transactions on the chain. Although this is in a downtrend, it is still more than double Ethereum’s 1.1 million daily transactions.
Furthermore, BNB Chain unique addresses are currently at an all-time high of 238 million as of Jan. 5. There are around a million daily active BEP-20 addresses and 3.4 million daily BEP-20 token transfers.
Additionally, BNB Chain is the second largest DeFi ecosystem after Ethereum. It has a total value locked of $5.3 billion which is 2,200% more than rival chain Solana, which has seen a collapse in on-chain activity. The top DeFi protocol on Binance Chain is the PancakeSwap DEX with a TVL of $3 billion, according to DeFiLlama.
BNB Price Outlook
Despite the on-chain activity downtrend and media FUD, the Binance coin is holding up well. BNB has gained 7% since Monday, topping out at $260 on Jan. 5. There has been a slight retreat today with BNB prices currently at $257.
BNB is currently trading at a three-week high and has made 4.6% over the past fortnight.
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Martin Young