In the last 24 hours, there has been minimal movement in the price of Binance Coin (BNB), showing a slight 0.84% decrease. This decrease does not provide a clear indication of the market’s direction.
During the previous week, BNB experienced its largest monthly drop, falling by 9.28%. Despite this significant decline, there are no identifiable triggers in the crypto market that could either reverse this downward trend or lead to further losses.
Resumption of USD Services for Binance.US by U.S. Authorities
Binance.US, which is the American arm of Binance and affiliated with BNB, has recently obtained regulatory approval to reintroduce USD deposit and withdrawal services as of February 19th.
Previously, these services were suspended during the Biden administration due to the increased scrutiny by the Securities and Exchange Commission (SEC).
Customers eligible for the service can now use bank transfers to deposit and withdraw USD, access USD trading pairs, and buy cryptocurrencies using fiat currency.
Initially, only 10 USD trading pairs, including BNB/USD, will be available.
While this could potentially lead to an influx of USD into Binance.US, with U.S. investors likely to increase their BNB purchases due to its association with the exchange, current indicators suggest otherwise. BNB trading activity has been subdued, and its price has not shown significant movements post the announcement.
The influx of liquidity into the BNB ecosystem remains low, indicating minimal investor participation and overall weak interest.
Presently, the Total Value Locked (TVL) in BNB’s ecosystem stands at $5.527 billion, a slight increase from its low of $5.502 billion on February 18th, with only $25 million added since then.
The sluggish liquidity influx hints at growing investor skepticism, exerting pressure on BNB’s price.
Low Engagement and Trading Activity
Data from Artemis indicates that trader confidence in BNB remains low, with minimal increases in daily active addresses and transaction volume.
Daily active addresses, representing unique interactions within the ecosystem, rose from 1 million on February 15th to 1.3 million.
Similarly, daily transactions increased from 4.8 million to 5.6 million over the same period.
While these figures suggest a slight uptick in interest towards BNB, it has not been substantial enough to trigger a significant price surge, given the prevailing cautious sentiment among investors.