- Binance to launch BNB restaking, but will it be enough to curb the TVL’s gradual decline?
- A recap of BNB chain’s network performance and how it reflected on BNB demand.
BNB Chain’s native coin, Binance Coin [BNB], recently embarked on a swing low that could lead to another rally in its mid-to long term range. However, it will need to secure bullish momentum to the upside.
The latest announcement highlighted a move that may provide short-term momentum. Not only that, but also potentially lend enough momentum to push out of its current range.
The network recently announced plans to introduce BNB restaking.
BNB restaking means holders staking on DeFi protocols can stake already staked BNB in pursuit of more rewards. As far as the potential impact is concerned, the move may encourage more BNB staking.
As a result, we may witness a surge in TVL in the coming months.
BNB Chain’s TVL has been on a downward trajectory since March. The network had a TVL of $4. 215 billion at the time of writing.
Source: DefiLlama
The BNB restaking might be BNB Chain’s latest attempt at curbing TVL outflows. The network had a $5.8 billion TVL at the height of the March rally.
This also aligned with the overall state of the market, which had been experiencing a confidence erosion in the last few months.
Allowing BNB restaking may allow the TVL to embark on recovery. In addition, this may encourage more BNB accumulation, in turn aiding in the cryptocurrency’s potential upside.
These outcomes would particularly be pronounced if the overall crypto market condition improves.
BNB chain transaction count reflects…
BNB has also been experiencing lower organic on-chain demand as the market cooled down in the last five months.
This is evident in the BSC network transaction count, which dropped off considerably between March and August.
Source: DefilLlama
BSC has, so far, registered a significant uptick in network transactions from August lows.
Daily on-chain transactions fell as low as 2.59 million transactions on the 18th of August, and have since climbed back above 3 million transactions at press time.
Read Binance Coin’s [BNB] Price Prediction 2024–2025
As far as price action is concerned, BNB exchanged hands at $512 at press time after experiencing a slowdown in its recent bullish momentum.
This has notably taken place before the RSI could recover above the 50% level, indicating that the bullish momentum was off to a weak start.