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- Crypto traders have been looking at an opportunity in Binance Coin (BNB) with its MVRV ratio going high, resulting in profitability for BNB holders.
- Just as Binance Coin (BNB) shows signs of an upswing since the start of July, the whale interest has picked up once again.
Amid the recent crypto market rally, the world’s largest cryptocurrency Bitcoin (BTC) has shown strong momentum and consolidation. However, one altcoin that’s currently on investors’ radar is Binance Coin (BNB).
On-chain data provider Santiment has identified Binance Smart Chain’s BNB as one of the altcoins that continues to attract considerable attention. This suggests that it could be a favorable choice for traders seeking price movements in the current market conditions.
🗣️ With #Bitcoin's rise in price dominance in 2023, it's no surprise to see that greater attention is being paid to #crypto's #1 market cap asset. But keep an eye on $ETH, $ADA, $XRP, $BNB, and other assets that are seeing little attention by comparison. https://t.co/D2Ie9NtgWn pic.twitter.com/pvto19EnEA
— Santiment (@santimentfeed) July 3, 2023
Binance Coin (BNB) faced strong correction over the last month after the U.S. Securities and Exchange Commission (SEC) slapped a lawsuit on the crypto exchange Binance. The Binance Coin (BNB) has corrected 20 percent over the last month giving investors the opportunity to do bottom fishing.
The analysis considered the social activity of BNB and other shortlisted altcoins. Although BNB experienced a decline in social dominance in recent months, it remained more active than many other altcoins. The dip in social metrics aligned with the rise of BTC dominance. However, the attention BNB received was evident in the level of hodling over the past three weeks.
BNB Whales Turn Active, Will BNB Price Surge?
Since early June, the average age of BNB coins has been increasing, indicating a rise in the number of hodlers. Currently, it is at its highest level in four weeks. Additionally, the Market Value to Realized Value (MVRV) ratio has been steadily rising, with a notable spike at the end of June, pushing it to a new monthly high.
The recent increase in the MVRV ratio indicates a sudden rise in profitability for BNB holders. It is worth noting that the trading volume of BNB does not reflect a significant surge during this period, suggesting that large investors, known as whales, maybe the ones purchasing BNB.
BNB experienced a healthy 13 percent rebound from its lowest price point to its highest point in the past seven days. This upward movement could set the tone for BNB’s performance in July, particularly if it attracts more whale activity. As of now, BNB is trading at $244, which is close to its lowest level in 2023.
In the second week of June, both the Relative Strength Index (RSI) and the Money Flow Index (MFI) indicated an influx of liquidity into BNB. This raises the question of why BNB is among the altcoins attracting more attention. One possible explanation is that BNB serves as the native cryptocurrency of a prominent network.
Historically, the Binance Smart Chain (BSC) has been widely utilized during bull markets, indicating its strong utility and potential for increased usage in the future. Therefore, there are expectations that the BSC will continue to be one of the most utilized networks in the next bull market.
