Binance Coin dominating in trends. Is it the top?
Assets covered: Binance Coin (BNB)
Metrics used: Social Volume, Social Dominance, Active Addresses, Network Profit Loss, Transaction Volume, MVRV, Whale Transactions Count
Binance seems unstoppable.
Who could have known an exchange token lagging from ETH will be able to make 4000% this year?
Today BNB reached sort of a peak social hype according to Santrends:
Being #1 in Trending words list usually indicates a toppish area for a coin. This is a study we've made, so we know what we're saying. Meanwhile some indicators are still missing to call it a top. Details below.
This is how Binance mentions in crypto social media evolves over time. It's rising steadily and seems aligned with a rally. Looking good so far. Until it starts lagging from price.
This is something similar to above. The chart shows how strong are Binance mentions compared to all other talks in crypto social media. We can see that it's not highest yet even despite an impressive price rally. Could probably continue surging. Because previous BNB local tops coincided with higher dominance spikes.
The amount of BNB addresses interacting with a coin at least once a day are not really growing along side the pump. They are slowly declining, so a slight price to active addresses divergence can be seen. A bearish divergence. Although it was the weekend so we might see that ramp up.
This metric shows that not a whole lot of coins are being moved with significant profit, which is kind of weird.
Another unusual non-pumpish chart. BNB onchain transaction volume is usually expected to spike around tops and during pumps. Onchain data says we're nowhere near yet.
MVRV or average profit of 30d BNB holders is getting close to the previous February top. Still can go higher looking at previous pump if the history repeats itself.
Red bars indicate BNB transactions worth more than $1M each. Not a lot of these whale transactions can be seen.
Overall it doesn't seem like there's a whole lot of the actual onchain transaction volume. Even thought the pump is happening. We could expect spikes similar to previous tops, forming the current top. But so far it's not really happening. Could be just the weekend. We might see it occurring in the next couple of hours or next couple of days.
Interesting that how relatively idle the network is. Given the fact that it's breaking a new ATH.
For now though it's not actually looking like top. It is looking like a top based on social data. But others not so much.
Getting back to social. We'd like to see something more before calling a top.
First of all, some great news should be released.
Are there any?
Well, Binance launching tradable stock tokens. Tesla stock tokens are now available for trading on Binance. Sounds cool? Imagine Binance allowing to buy Coinbase stock tokens in a few days, after listing. That could be huge. So we're not there yet.
Second, BNB should start going down from the first place in Santrends. This could indicate a fading crowd interest. No crowd no pump. Not there yet too at the moment of writing this.
So we would keep watching.
Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.