Can BNB break past $620? On-chain and derivatives metrics hint positvely.
BNB (BNB) saw a 12% increase in value over the seven days leading up to March 29, reaching a nearly two-week high of $620. This surge narrowed the valuation gap with its main competitor, Ether (ETH), which posted a 5% gain during the same timeframe. However, mixed signals from on-chain BNB Chain data suggest that the rally may have stretched too far.
Market analysts note that the cryptocurrency market’s upward trend is closely linked to inflows into spot Bitcoin (BTC) exchange-traded funds (ETFs), which experienced a setback in the week ending March 23. For the first time since the introduction of spot ETFs in January, these financial instruments saw a net outflow of $890 million. On a positive note, recent figures indicate a significant decrease in outflows from Grayscale GBTC fund, with only $104 million leaving the fund on March 28.
In the first half of March, BNB’s price soared by 61.7%, but this momentum reversed after reaching a peak of $645, corresponding to a market capitalization of $96.4 billion. For context, BNB hit an all-time high valuation of $116 billion in November 2021. Interestingly, the total value locked (TVL) on BNB Chain, which represents the total deposits in the network’s smart contracts, was $15.7 billion at that peak but has since fallen to just $7.1 billion, a 55% reduction.
