Trading volumes of tokens within the BNB Chain ecosystem more than doubled in the past 24 hours, with the meme coin FLOKI leading gains among the larger tokens.

BNB Chain Projects Experience Significant Activity Boost

Projects across the BNB Chain ecosystem have recorded a significant increase in activity, token prices, and trading volume as the blockchain’s native BNB token surged to a record high above $710 during Asian trading hours. According to CoinMarketCap, trading volumes of BNB Chain-based tokens surged by 124% in the past 24 hours. The dog-themed meme coin FLOKI, prominent on both Ethereum and BNB Chain, led the gains with an increase of over 25%, while decentralized exchange PancakeSwap’s CAKE token jumped by 15%.

Smaller Cap Projects Show Impressive Gains

Among projects with a market capitalization of under $200 million, the trading service Sensi’s SENSI token saw a remarkable 900% price increase, with trading volumes rising from $14,000 on Monday to $100,000 by Wednesday morning.

Total Value Locked and Inflows on the Rise

The total value locked (TVL) in BNB ecosystem projects increased nearly 8%, according to data from DefiLlama, led by PancakeSwap and the lending application Venus. Net inflows into the ecosystem topped $2.4 million as of Wednesday morning, reversing a trend of net outflows since May 30.

Factors Contributing to BNB’s Price Surge

While there was no immediate catalyst for BNB’s price increase, market observers pointed to several factors boosting the token’s fundamentals. Nick Ruck, head of growth at Bitcoin yield project BitU, noted that “BNB’s price is benefiting from years of token burns and lock initiatives for their launchpad program. BNB protocols have also ramped up campaigns and activities due to cheaper gas fees, cultivating a large and energetic user base.”

Token burns, which involve the permanent deletion of tokens from the circulating supply, have been a significant factor. Since 2021, these burns have removed a portion of the gas fees spent on BNB Chain transactions, with nearly $400,000 worth of tokens burned in the past seven days, according to blockchain trackers.

BNB Chain’s Potential Recognized by Developers

A Floki developer, identified as B, emphasized the strengths of the BNB Chain: “BNB chain is perhaps the most underrated chain in all of crypto, partly due to some anti-Binance/BNB narratives. However, from a fundamentals perspective, the BNB chain is one of the best chains to build on: it is fast, scalable, and arguably the most used chain by the majority of the non-Western world.”

BNB Chain, initially developed as Binance Smart Chain, continues to receive support from the world’s largest exchange for its development and funding. “We are prioritizing the BNB chain for the Floki Trading Bot, which will be going live soon, as well as for several other products. This action has paid dividends: Floki currently has five times more holders on the BNB chain than ETH, and the vast majority of our community uses the chain,” B added.

Polkadot (DOT) has experienced a prolonged downward trend in its price, but it has discovered robust and consistent support around the $6.40 mark, suggesting a potential bottoming out.

A notable upturn occurred on Wednesday and Thursday, propelling DOT’s price above both the 20-day and 200-day Simple Moving Averages (SMA).

DOT’s Resilience and Rebound:

Since reaching its yearly peak in mid-March, DOT has undergone a decline of over 40%, distancing itself significantly from its previous highs. The journey from $11.55 to $8.77 by March 19th marked a dip below the 20-day SMA. Despite a recovery to $9.14, DOT slipped to $8.43 by April 3rd, influenced by the 20-day SMA. Subsequent downturns on April 12th and 13th, amounting to 13.48% and 11.72% drops respectively, pushed the price below the 200-day SMA to $6.40, where sturdy support was found.

The bounce-back commenced, with DOT reclaiming ground above the 200-day SMA by April 22nd, reaching $7.47. Yet, encountering resistance at the 20-day SMA, DOT dipped below the 200-day SMA again to $6.73 by the following Sunday. Continuing into the current week, DOT faced declines of 2.23% on Monday and 2.43% on Tuesday, closing at $6.42. However, the formidable $6.40 support level triggered a rebound, lifting DOT by 7.48% to $6.80 on Wednesday, testing resistance at $7. Thursday’s momentum persisted as buyers propelled DOT upward by 5.65%, surpassing both the 20-day SMA and the 200-day SMA to settle at $7.29.

At present, DOT hovers around $7.17, slightly above the 200-day SMA, as market participants evaluate their positions.

Analyzing Patterns and Possibilities:

Reviewing the DOT price chart reveals intriguing patterns. Between March 15th and April 11th, a descending triangle formation implied seller dominance. However, on April 30th, DOT formed a double bottom pattern, hinting at a potential price floor. The current range for DOT lies between $7.10 and $7.20, with the 200-day SMA positioned at $7.19. A failure to sustain above the 200-day SMA might lead to a retreat to $7, with the 20-day SMA offering support. Further downward movement could target the $6.40 support level.

The path to upward price movement hinges on DOT’s ability to maintain its position above the 200-day SMA. A successful breach could propel DOT towards the $8 mark, with the 50-day SMA posing a formidable resistance.

Insights from Indicators:

Examining indicators, the MACD signals bullish sentiment, supporting the prospect of an extended price recovery. The RSI remains firmly within the neutral zone, suggesting room for further price appreciation.

Moreover, the recent decline in DOT’s price triggered the liquidation of numerous long positions, resulting in significant drops in the OI-Weighted Funding Rates. This, coupled with DOT’s price consolidation, suggests that a bottoming out may have occurred, potentially paving the way for a resurgence in DOT’s value.