Binance Coin [BNB] Faces 12.02% Decline in Daily Transactions, 25% Drop in New Addresses

Binance Coin [BNB] has experienced a notable decline in on-chain sentiment, with participants showing a lack of interest in the asset. This weakening demand is evident in both the spot and derivative markets, where selling pressure has become more pronounced. Over the past day, BNB has maintained a relatively steady level, with no significant gain or loss recorded. However, the current on-chain sentiment does not support a market rally, as interest wanes in both trading and the utility of BNB across the BNB Chain.

The number of daily transactions completed on-chain has seen a steep decline, reaching its lowest level this month. This drop occurred after a 12.02% decline, following 12.7 million daily transactions completed during the period. This decline in activity implies that market participants are not actively engaging with the network or using BNB. Potential market participants may be reacting to this signal, as the number of new addresses has dropped significantly over the past day. At the time of writing, the number of new participants had declined by 25%. Typically, this metric increases during periods of high interest and decreases during periods of low interest.

The most active addresses have likely begun selling as well, as they saw a significant spike in activity over the past day. The number of daily active addresses that finalized over 100 transactions surged significantly during this period. This trend suggests that the most active participants and traders using BNB are exiting, particularly as volume has dropped to $1.29 billion following an 8% decline.

In the derivative markets, options traders have led the sell-off. Option Open Interest, which determines whether liquidity is entering or exiting the market, indicates the latter. Option Open Interest fell by 71.36%, down to $3.09 million in the past day, implying widespread contract closures, with long liquidations contributing to the trend. A closer look at the OI-Weighted Funding Rate confirms that bears are in control. This metric has fallen into negative territory, with a reading of -0.0023%, suggesting that most open contracts are from sellers betting on a price drop.

Analysis shows that the spot market reflects the behavior of both on-chain participants and derivative investors. Selling volume has increased in the spot market, with traders offloading $2.18 million worth of BNB in exchange for other assets, possibly stablecoins or alternatives with stronger price outlooks. This sell-off has pushed cumulative weekly sales to $36 million, a significant outflow into other ecosystems. If this negative trend continues across markets, it’s likely to trigger a further price downturn for BNB.