Binance’s Total Value Locked (TVL) Jumps by $665M – Rising Investor Confidence?
Over the last 24 hours, Binance Coin [BNB] has experienced a slight increase of 2.14%, extending its positive trend from the previous week of 10.24%, with a current trading price of $670.98.
Analysis of the market conditions indicated that BNB is likely to continue its upward trajectory, supported by several favorable market sentiments, including its increased on-chain and derivatives market trading volumes.
Reaching New Heights Amid Market Downtime
Despite market downtime, BNB Smart Chain stands out as the only chain that has shown positive volume growth over the last seven and 30 days, outperforming other chains like Solana [SOL], Ethereum [ETH], Base, and Arbitrum [ARB], which have witnessed declines.
According to DeFiLlama data, weekly volume growth has surged by 66.63% to reach $31.194 billion, with a 24-hour increase to $3.735 billion, the highest among all chains.
The Total Value Locked (TVL) on the Binance Smart Chain has been steadily increasing, rising from $4.895 billion to $5.56 billion between February 3rd and the current time.
A substantial $665 million surge in TVL signifies growing confidence in BNB, leading to a potential price rally and reduced supply across exchanges.
Surge in Buying Volume on Exchanges
A notable increase in the buying volume of BNB has been observed on major cryptocurrency exchanges such as Binance and OKX, particularly among perpetual market traders.
The Taker Buy Sell Ratio on both Binance and OKX has soared well above 1, with readings of 1.727 and 2.33, respectively, indicating higher buying activity compared to selling among perpetual traders.
A Taker Buy Sell Ratio above 1 signals a stronger buying presence in the market, with readings further away from 1 suggesting significantly higher buying volumes versus selling.
Meanwhile, Open Interest, which tracks unsettled derivative contracts, has also experienced a gradual increase, climbing by 1.78% to a total value of $866.70 million.
Maintaining Resilience Amid Exchange Flow Growth
Despite a substantial spike in exchange netflow from the 10th to the 16th of February, reaching approximately $142 million—the highest since May 2021—BNB managed to surge by 10%, indicating strong demand to acquire assets despite increased selling pressure.
This resilience in the face of elevated exchange netflow suggests a solid demand for BNB, potentially driving further price increases in the upcoming week.