The BNB network, operated by the leading cryptocurrency exchange Binance, has witnessed a surge in decentralized exchange (DEX) volumes, recently surpassing those on the Ethereum network. This increase in DEX activity is attracting more users to the Binance Chain ecosystem, potentially leading to a rise in the Total Value Locked (TVL), which has soared to around $6 billion. BNB, the native token, is used for transactions on the network, and the upsurge in DEX activity may boost demand for the token to cover transaction fees, possibly driving up its price.
DEX Activity Fuels Binance Chain Growth
The recent boost in DEX volumes on the BNB network could spark a network effect by attracting a larger user base that finds the network more valuable. The increased usage is likely to have a positive impact on the TVL of the BNB ecosystem, reflecting its growing popularity and usage. Additionally, the heightened DEX activity may lead to an increased demand for BNB tokens as they are essential for transaction fees on the network.
BNB Token Price Nears All-Time High
Currently, BNB is trading at $594.86, showing a 2.67% growth over the last day. Despite fluctuations in recent weeks and a testing resistance level at $635.2, BNB is demonstrating a tendency for an upward trend. Should the token retest the resistance level, it has the potential to surpass its all-time high (ATH) of $690.93, requiring a further 13.32% in price growth. However, with the Chaikin Money Flow (CMF) indicator hovering at a neutral 0.07, there seems to be limited buying pressure for BNB at the moment.