Due to poor performance in the basic data sheet, BNB price is in trouble, but the release of Zhao Changpeng may become a potential catalyst for the recovery of this token.
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From August 23 to September 2, BNB's price faced significant challenges, dropping from a high of $598.80 to $502.10, a sharp 16.1% decline. Although strong bids around $510 pushed the price up to $517, investors still have doubts about its long-term outlook. Data shows that since mid-June, BNB's price has struggled to stay above $610, fueling concerns that BNB may enter a downward phase. Some investors, however, believe that the release of Zhao Changpeng could boost BNB's price, despite the deteriorating fundamentals of BNB Chain.
The decline in BNB Chain's on-chain activity has intensified selling pressure.
On-chain indicators indicate a significant decrease in BNB Chain's user interest recently, especially with the noticeable decline in DEX trading volume. This decrease in activity has led traders to predict that BNB may retest the $400 support level. Some market observers believe that shortly after the release of its founder and former CEO, Zhao Changpeng (CZ), BNB may break out of the current consolidation pattern. Although Zhao Changpeng's situation is not directly related to BNB's price, his personal influence and the market's anticipation of his release may affect market sentiment. Anonymous trader Degen predicts a potential surge in BNB's price as a result.
As a result, traders may take advantage of this event by buying BNB on dips before Zhao Changpeng's release and selling high near his release to take profits. It is important to note that investing in BNB based solely on the expectation of Zhao Changpeng's release may bring investment risks, especially given the increasingly declining activity of BNB Chain. Despite the challenges, BNB still remains the third-largest cryptocurrency by market cap, excluding stablecoins. Its current total market cap is $75.7 billion, 23% higher than Solana's $61.5 billion market cap.
Interestingly, compared to BNB Chain, Solana Network has a higher Total Value Locked (TVL). BNB Chain's TVL has recently dropped to its lowest level since February 2021, while the total TVL of the crypto has increased by 27%. This contrary downtrend further adds to investors' concerns about the future outlook of BNB Chain. Data shows that as of August 20, BNB Chain's TVL fell to 7.5 million BNB, a 14% decline over the past three months. Notably, its main DEX exchange TVL dropped by 15% to 2.93 million BNB, while the TVL of the decentralized launch platform PinkSale decreased by 26%.
Disclaimer: FameEX makes no guarantee regarding the accuracy and applicability of official statements from exchanges in this field or any related financial advice.