Bitcoin [BTC], Ethereum [ETH], and BNB often see closely correlated movements and no wonder, since they are the top three non-stablecoin cryptos by market cap. Naturally, when Bitcoin and Ether noted daily rallies, so did BNB. But it’s not yet time for investors to celebrate, as the metrics paint a more somber picture.
No sugar coating here
BNB’s price may be going up, yes, as the coin was trading at $403.06 at press time, after rising by 4.74% in the past day and rallying by 3.17% in the past week.
However, BNB volumes have been sliding down for a long time, and this was in spite of bullish updates for Binance, dip-buying opportunities, and price recovery since the fall of 2021. All in all, this points to the theory that BNB investors are ready to scoop up the asset right after major market crashes.
Adding to that, development activity for BNB is also looking rather lackluster, as Santiment data showed the metric was closer to 0 than 1.0 through most of March and April. This does not work in BNB’s favor when considering its long term growth without Binance’s institutional support.
Furthermore, while development activity contributors count for BNB has been declining since about early 2018, it’s important to note that 2022 saw larger spaces where there was no such activity to record. Again, this is a worrying sign for investors who want to know that a crypto is backed by a strong and engaged community of builders.
What about the coin’s more high-profile buyers? Well, it seemed as if whales were also looking the other way. While 28 and 29 April saw a spike in transactions worth more than $100,000, May has been low-key