BNB Chain Activity Drops 12.02% Amid Bearish Sentiment

Binance Coin (BNB) has experienced a notable decline in network activity, with daily transactions on the BNB Chain reaching a monthly low. This decrease, confirmed by data from BscScan, shows a 12.02% drop to approximately 12.7 million transactions. The reduction in transactions suggests a decrease in the active use of the network and its native token, BNB.

This trend is further supported by a 25% decrease in the number of new addresses created on the chain within the last day, indicating a waning interest among new users. Additionally, the number of daily addresses conducting over 100 transactions has increased, signaling that existing active users are likely selling their holdings. This selling pressure is reflected in BNB’s daily trading volume, which dipped 8% to $1.29 billion.

Derivatives markets have also turned bearish, with a significant shift in sentiment. Open interest in BNB options markets plummeted 71.36% to $3.09 million, indicating widespread contract closures and liquidations of bets on higher prices. The Open Interest Weighted Funding Rate turned negative, registering -0.0023%, which means traders holding short positions are paying those with long positions, confirming a prevailing bearish outlook.

In the spot market, selling activity has increased, with traders exchanging $2.18 million worth of BNB for other assets like stablecoins. Over the past week, this selling pressure has accumulated to $36 million flowing out of BNB. This sustained selling across various areas—reduced network use, bearish derivatives bets, and direct spot market disposals—creates headwinds for BNB’s price. If these conditions persist, further downward movement becomes a distinct possibility.

Despite these challenges, BNB is trading at $648.26 USDT, showing a modest daily gain of +0.15%. The weekly performance is slightly positive at +0.79%, while the token remains under pressure on the monthly view with a −5.85% decline. Year-over-year, BNB is up 11.42%, driven by Binance’s sustained dominance in the centralized exchange ecosystem and the expansion of BNB Chain use cases.

Technical analysis indicates that BNB is currently exhibiting strong bullish signals across multiple timeframes. On the daily and weekly charts, technical indicators such as moving averages and oscillators are aligned with buy or strong buy signals. Price volatility remains relatively low at 0.63%, implying reduced intraday whipsaw but steady directional bias. The asset is still trading below its all-time high of $793.86, but it’s showing resilience and possible setup for a reaccumulation phase.

Several developments within the Binance Smart Chain (BNB Chain) are providing news catalysts for BNB. The upcoming ZK-rollup implementation promises improved scalability and gas efficiency. Additionally, Binance has launched a new institutional onboarding framework, attracting large trading desks and custodians. The burn mechanism, which removed over 2.3 million BNB tokens from circulation in the latest quarterly burn, continues to support price appreciation by reducing supply.

The increasing adoption of Binance’s Launchpad and Launchpool features, which require BNB staking for participation, has created periodic demand spikes and strengthened the token’s utility beyond trading discounts. These developments suggest that despite the current selling pressure, BNB has underlying strengths that could support its price in the long term.