crypto exchangeBNB Chain Surpasses Ethereum in DEX Volume Amid Price Drop

BNB Chain Surpasses Ethereum in DEX Volume Amid Price Drop

Binance Coin (BNB) experienced a slight dip on Monday, falling 6.50% to $685 from its weekend high, as the crypto market reacted to Donald Trump’s inauguration. Despite this price drop, BNB Chain achieved a significant milestone by surpassing Ethereum (ETH) in decentralized exchange (DEX) volume.

According to data from DeFi Llama, BNB Chain’s DEX platforms processed over $5.7 billion in daily sales on Monday, outpacing Ethereum’s $5.05 billion. This achievement made BNB Chain the second-largest network in terms of DEX volume, behind Solana, which recorded a staggering $25.3 billion. The daily volume on BNB Chain marked its most substantial increase since March 2021.

PancakeSwap, the leading platform on BNB Chain, accounted for more than $5.24 billion in volume, with other platforms like THENA, Uniswap, DODO, and Woofi contributing to the overall surge.

Ethereum, facing increasing competition from layer-2 networks like Base, Arbitrum, and Optimism, has seen some of its market share erode. Base, launched by Coinbase in 2023, recorded a weekly volume of $14 billion, trailing Ethereum’s $21 billion.

The next catalyst for BNB’s price movement is expected to be its upcoming token burn, which will see 1.64 million BNB tokens valued at over $1 billion removed from circulation. This burn, scheduled for the coming weeks, is part of a broader effort to reduce BNB’s total supply from 144 million to 100 million tokens.

In terms of price analysis, BNB has demonstrated strong performance over the past year, rising from $188 in 2022 to $690. The coin is currently consolidating near the top of a cup and handle pattern, a bullish technical indicator. With BNB trading above both the 50-week and 100-week moving averages, along with upward momentum indicated by the Relative Strength Index (RSI) and MACD, the coin is poised for a potential breakout. Analysts suggest that BNB could reach key resistance levels of $1,000 and $1,135 in the coming months.

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Andrew
Andrew
Self-taught investor with over 5 years of financial trading experience Author of numerous articles for hedge funds with over $5 billion in cumulative AUM and Worked with several global financial institutions. After finding success using his financial acumen to build an investment portfolio, Andrew began writing and editing articles about the cryptocurrency space for sites such as chaincryptocoins.com, ensuring readers were kept up to date on hot topics such as Bitcoin and The latest news on digital currencies and Ethereum.

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