Here’s why Binance Chain (BNB) faces a significant price test on September 30


BNBThe original token of the BNB chain from Binance, entered a symmetrical triangle formation on August 10, when it first encountered the descending trendline at the $335 resistance. The next five weeks were a struggle around $280, which is the exact intersection of two opposing bullish and bearish patterns.

BNB/USD token in FTX. Source: TradingView

A decision on whether the symmetrical triangle will break to the upside or down is expected by September 30, when the trend lines intersect. The BNB Chain Token currently has a total market capitalization of $45 billion and has outperformed the broader altcoin market by 15% over the past three months.

The latest progress in the development of the BNB chain was announced on September 7, following the presentation of the project Proof of no-knowledge (ZK) Expanded privacy technology. The testnet is expected to take place in November, aiming for faster final results and lower transaction fees. Mastermind of Ethereum Vitalik Buterin also wants to implement A similar solution to the Ethereum network that highlights the importance of ZK in late 2021.

The Ethereum-compliant BNB Chain network is fully operational, hosting decentralized applications (DApps), including decentralized exchanges (DEXs), games, secured loan services, social networks, revenue pools, and NFT marketplaces.

A drop in price deposits can be a red flag

Although it is currently down 60%, BNB is still the third largest cryptocurrency by market cap, excluding stablecoins. Furthermore, the network holds $6.6 billion worth of locked deposits on smart contracts, a term known as total locked value, in the industry.

Although the price of BNB has increased by 26.5% in the past three months, the TVL of the network measured in BNB tokens has fallen by 12.5% ​​in the same period. Usually this data is worrying, but it depends on the performance of other competitors.

The total value of the BNB locked chain, BNB. Source: DefiLlama

In fact, the decline in smart contract deposits has been the norm across the industry. For example, Solana (Sol(TVL decreased by 27.5% in 3 months, avalanche)fax) decreased by 36%. Even Ethereum saw a 29% drop in ETH deposits, down to 24.2 million from 34 million on July 17.

In dollar terms, the current TVL value of the BNB Chain of $6.6 billion increased by 12% in the three months leading up to September 16. This number is significantly outperforming other Ethereum competitors, such as Avalanche’s $2.2 billion or Solana’s $1.3 billion, according to To data from DeFi Llama.

DApp usage is on the rise, led by Gameta

To confirm whether the BNB Chain’s TVL decline is accompanied by a decline in the number of users, investors should analyze decentralized application (DApp) usage metrics. Some DApps, such as games and collectibles, do not require large deposits, so the TVL metric is irrelevant in those cases.

Top BNB Chain DApps with active addresses in 30 days. Source: DappRadar

PancakeSwap, the BNB Chain decentralized exchange, has 1.75 million active addresses, and is the absolute leader in all smart contract networks. Meanwhile, the Ethereum network has only three DApps with over 35,000 active addresses, which are Uniswap, OpeanSea, and MetaMask Swap.

Most importantly, three DApps using BNB Chain grew by 190% or higher, with Gameta being the most promising, with over 900,000 active titles. Critics of the BNB chain will have a hard time if another app besides PancakeSwap consolidates its leadership across all smart contract networks.

Judging by the absolute numbers, which means a 12.5% ​​TVL drop in BNB and a 14% drop in active addresses on the Binance Chain’s flagship DApp, one can incorrectly conclude that the BNB token is ready for a correction.

However, a more accurate analysis, including a comparison with competitors, shows that the symmetrical triangle cross pattern at $280 on September 30th is likely to be a bullish reason for BNB price.

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