Recent data indicates a rapid decline in BNB's market demand and on-chain sentiment, with selling pressure significantly increasing across both spot and derivatives markets.
Sharp Decline in On-Chain Activity Signals Waning Interest
Over the past 24 hours, transaction activity on the BNB Chain has dropped notably. At the time of writing, daily on-chain transactions have reached their lowest level this month.
According to BSCScan data, the previous daily transaction volume stood at 12.7 million but has since decreased by 12.02% year-over-year.
Simultaneously, new address creation has declined substantially, showing a 25% reduction over the past day. This suggests diminishing interest in BNB among potential users.
Interestingly, the number of active addresses completing over 100 transactions has shown an unusual increase. Artemis Data indicates this might signal active users liquidating their holdings.
Bearish Sentiment Dominates Derivatives Markets
Derivatives markets reflect strong bearish signals. CoinGlass data reveals that options open interest plummeted 71.36% over the past day, dropping to $3.09 million.
The OI-weighted funding rate has fallen to -0.0023%, demonstrating market dominance by short positions, with traders overwhelmingly betting on further price declines.
Spot Market Selling Surge Triggers Significant Capital Outflows
Spot market selling activity continues to accelerate. Data shows traders sold $2.18 million worth of BNB in the past 24 hours, exchanging it for stablecoins or assets with stronger perceived price potential.
This trend has pushed weekly cumulative sales to $36 million—representing substantial capital outflow from the ecosystem.
If this negative trend persists, BNB's price could face additional downward pressure.
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FAQs About BNB's Current Market Situation
Why is BNB's on-chain activity decreasing?
The decline reflects reduced network usage and weaker demand, with fewer new addresses being created and existing users potentially liquidating holdings.
How does negative funding rate affect BNB's price?
A negative funding rate indicates dominant short positions, creating downward pressure as traders bet against price recovery.
Where is the sold BNB capital flowing?
Investors appear to be moving funds into stablecoins or other cryptocurrencies perceived as having better short-term prospects.
What happens if this selling trend continues?
Prolonged capital outflows could further destabilize BNB's price, potentially triggering more intense selloffs.
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