BNB takes the NFT top spot, but investors shouldn’t get excited – here’s why
A glimpse of NFT the market showed that neither Ethereum [ETH] nor Solana [SOL] was the top chain in the last 24 hours. Surprising, Binance coin [BNB] took in the center of the top three, according to CryptoSlam.
Generally, the NFT community would not expect BNB to overtake ETH or SOL in sales volume. Of course that was the case. However, traders’ participation, fundraising interest and transactions seemed to have shifted to BNB instead of the other two.
Just the greens?
According to the NFT data platform, BNB NFT sales volume increased by 57.52%. This increase was enough to bring the volume to $625,966. Although it was not up to millions of dollars recorded by ETH and SOL, it was the highest increase among them.
Source: CryptoSlam
The increase in transaction volume brought the total sales volume for August to $13.10 million. Despite the performance, it was still the lowest monthly volume BNB had accumulated in four months since hitting a low of $9.80 million in April.
So BNB may have to up its game beyond the 2,132 transactions that took place on the last day of August.
However, BNB’s case is not only about the greens, as the exchange token price did not act in accordance with the NFT state. CoinMarketCap reported that there had been a volume decline of 13.61% at press time.
Additionally, the price was down to $276.72, following a downtrend with many top cryptocurrencies.
Looking at the charts, BNB does not seem ready to rise from its misery. This is like Moving The mean convergence divergence (MACD) was clearly below the histogram with signs of a continuous bearish movement.
Also, sellers (orange) appeared to have maintained a position above BNB buyers (blue). For the Awesome Oscillator (AO) there was a similar position with the value in the negative at -2.8.
Source: TradingView
BNB may have added more investors to its flock as Sentiment revealed an increase in 24-hour active addresses. However, the thirty-day market-to-realized value (MVRV) appears to be declining.
With these conflicting calculations, there was no clear direction where BNB was heading. Because of this divergence, BNB investors may need to hold off on taking any positions given today’s momentum.
Source: Sentiment
However, this “separation” has not stopped BNB from securing new developments. Lately, parent company Binance, announced that it would support upgrades to the BNB chain. Based on the details, BNB would go through a network upgrade and hard fork, but it will not result in a new token.
#Binance will support #BNB Beacon Chain (BEP2) and Beam $BEAM network upgrades and hard forks.
— Binance (@binance) 1 September 2022
