Binance Smart Chain: On-chain outlook, Edition #5 (16/06/21)
On-chain data for Binance exchanges BSC looks to be bullish. However, will this momentum reflect in the price?
The bullish on-chain case for BNB holders
Here is a short update on what we’ve just noticed. Let’s examine the supply distribution of different holder bands and how they have changed during the dip.
Throughout the recent May cryptocurrency price correction, the amount of BNB being held by wallets (excluding exchanges) have increased (see Grey arrow).
This is not common amongst most cryptocurrencies, with supply often shifting between different holder bands.
The chart below shows three distinct holder bands, of which all have increased:
1,000 to 10,000 BNB holdings (Purple line)
10,000 to 100,000 BNB holdings (Red line)
100,000 to 1m BNB holdings (Yellow line)
The largest holding band, 100,000 to 1m BNB, has increased from 37 to 40, which is the pre-correction level.
Let’s continue to monitor this chart and see how it reacts to any upcoming price action. It’s important to remember that BTC price action dictates the market and that on-chain is only one piece of the puzzle.
See you again for the next update.
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