contributor
Posted:
- Binance announces BNB restaking initiative, but can it reverse the slow decline in TVL?
- A detailed overview of BNB chain’s network activity and its implications for BNB demand.
BNB Chain’s core asset, Binance Coin [BNB], has recently seen a pullback that could potentially lead to a resurgence in its mid- to long-term trajectory. However, it must gain upward bullish momentum to achieve this.
The recent announcement indicated a strategy that might create immediate momentum. Additionally, it could grant enough traction to break free from its current range.
The network has officially unveiled plans to initiate BNB restaking.
BNB restaking allows holders staking on DeFi protocols to restake already staked BNB for additional rewards. This could potentially lead to a boost in BNB staking.
As a result, we might see an increase in TVL in the months ahead.
BNB Chain’s TVL has been on a downward slope since March, currently standing at $4.215 billion.
Source: DefiLlama
The initiative for BNB restaking is likely BNB Chain’s recent strategy to mitigate TVL losses. The network once reached a $5.8 billion TVL during the peak of the March rally.
This trend also correlates with the general state of the market, which has faced a decline in confidence over recent months.
Permitting BNB restaking might facilitate a recovery in TVL levels. Furthermore, it may promote increased BNB accumulation, further supporting the coin’s potential growth.
Such effects would likely be more pronounced if the wider cryptocurrency market conditions improve.
BNB chain transaction count shows…
Recently, BNB has encountered diminished organic on-chain interest as the market has cooled over the last five months.
This downturn is reflected in the transaction count on the BSC network, which experienced a significant drop from March to August.
Source: DefilLlama
So far, BSC has seen a noticeable rise in network transactions since the nadir in August.
Daily on-chain transactions fell to a low of 2.59 million on August 18, but have since climbed back above 3 million at the time of this report.
Read Binance Coin’s [BNB] Price Outlook 2024–2025
Regarding price action, BNB was trading at $512 as of this report, following a slow down in its recent bullish trend.
This has notably occurred before the RSI could recover past the 50% mark, indicating a somewhat weak commencement of bullish momentum.
