BNB bulls show dominance by pushing the price higher as most major coins face selling pressure.
The demand for yield farming on Binance Smart Chain could be one of the main reasons behind BNB’s rally.
Binance Smart Chain’s native coin, BNB, continues to grow even as the rest of the market struggles to maintain bullish momentum. It has built on the momentum gained over the weekend, but there is a major driver behind this exuberant expansion.
Yield farming demand on BSC has been a major driver of BNB’s continued growth this week, especially following Binance’s announcement of the launch of Scroll’s SCR token on Binance launchpool. Whales have reportedly been buying BNB to mine Scroll’s yield.
Bitcoin and ETH experienced outflows on Tuesday, October 8, leading to a price drop over the past 48 hours. BNB has been able to grow over the same period thanks to sustained demand. At press time, it is trading at $580 after gaining nearly 3% on Tuesday.
Source: TradingView
The bullish expansion also helped BNB post a gain of more than 6% over the past seven days, making it the biggest winner among the top 10 cryptocurrencies by market capitalization.
Note that the BNB price at the time of publication is only 3.44% away from the $200 target. Why is this important? BNB has struggled to push above the $200 range over the past three months.
It has done it multiple times but each time it has been met with increased selling pressure. Will BNB pull back again or maintain its momentum above $600 this time?
Can BNB maintain its bullish momentum?
The cryptocurrency is sure to experience some selling pressure if its current momentum cools. Looking at on-chain buy and sell volumes, selling pressure appears to have increased over the past two days.
Source: DeFiLlama
The higher selling pressure compared to buying pressure suggests that BNB could face more hurdles on its way to $200. However, that will depend on whether demand is easily quenched, potentially opening the way for bears to take control.
BNB’s performance was also marked by some recovery in on-chain BNB network activity. Transactions improved from a weekly low of 3.16 million transactions on October 5 to 3.65 million transactions on October 9.
Source: HyblockCapital
Network fees have also shown improvement over the past three days after falling since late September. Daily fees fell to $306,000 over the weekend and have since risen to over $350,000, reflecting a recovery in network activity.
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