According to on-chain data received on Tuesday, BNB Smart Chain, the smart contract network started by cryptocurrency exchange Binance, is seeing renewed user interest. On the flip side, however, the native token of the ecosystem, BNB, is struggling to build a positive momentum.
BNB Smart Chain records increased in revenue
On-chain data shows that the aggregate daily revenue generated by protocols in the BNB Smart Chain ecosystem skyrocketed to $2.25 million as of Sunday – marking its highest level since a series of spikes recorded earlier in the year in January.
Specifically, the last time such readings were seen was back on January 11, 12, and 22, when daily revenue hovered between $2.5 million and $2.6 million.
The latest move points toward sustained increase in fee-generating activity across all the BNB Smart Chain protocols. Some of the possible contributors could be decentralized trading, transfers, arbitrage, liquidations, smart-contract interactions or concentrated activity within one or several applications.
That said, revenue data by itself cannot ascertain the primary source of the increase or measure the total value of the assets transferred.
What’s further worth pointing out is that extreme revenue spikes tend to coincide with periods of increased speculative and transactional activity near potential market tops and bottoms.
For instance, the last comparable surge in BNB Smart Chain revenue occurred in January, when Bitcoin was trading above $94,000 – before the market entered one of its largest corrections of the year and eventually fell all the way down to $59,000.
As a result, the return of revenue to similar levels may signal that the market is approaching another important turning point. However, further increase in price, liquidity and on-chain indicators are required for confirmation.
BNB coin is struggling
Although the relatively higher revenue generated by the BNB Smart Chain is a welcome bullish development, the fuel of the ecosystem – BNB coin – appears to be struggling.
In a Monday X post, crypto trader Kamran Asghar remarked that BNB has lost a key trendline on the daily chart. They shared the following chart, adding that the digital asset could be under serious trouble if the bulls aren’t able to defend its next support level around $475.
