BNB Rebounds 39% Despite Smart Contract Deposits Falling 28% - Should Investors Be Worried?

The BNB chain's total locked value has fallen more significantly than its competitors, but the network's decentralized applications aren't going away.< /p> Total cryptocurrency market capitalization fell from $860 billion on June 30 to $1.030 billion currently, a 20.6% relief in five weeks. Ether (ETH) might have been the absolute leader among the biggest smart contract chains, but BNB managed to gain 39% over that time.

BNB (blue) vs Ether (orange), AVAX (cyan), SOL (yellow). Source: TradingView
The BNB token's year-to-date performance remains negative at 43%, but the current market cap of $49.5 billion ranks it third, excluding stablecoins. Additionally, the main decentralized application (DApp) is PancakeSwap - 843,630 active addresses in the last seven days - which runs on BNB Chain.

The token primarily serves as a utility asset within the Binance exchange ecosystem, allowing traders to earn rebates or participate in token offerings. So technically, the BNB token does not give any ownership rights or dividends to any company or service owned by Binance.

However, according to Bloomberg, the U.S. Securities and Exchange Commission (SEC) is investigating whether the initial token offering (ICO) of BNB tokens in 2017 consisted of a sale of unregistered securities. A digital asset may be subject to SEC scrutiny if buyers intend to profit from the efforts of a company or project funded by the capital raise.

To understand whether the 39% rise in BNB in five weeks is justified, investors need to analyze network usage, including smart contract deposits, active users, and adoption of decentralized applications.< /p> Mixed data from smart contract repositories and DApp usage
BNB Chain's leading decentralized application metric began showing weakness in early May, with the total value of the network l...

Crypto Aug 4, 2022 0 72 Add to Reading List

BNB Rebounds 39% Despite Smart Contract Deposits Falling 28% - Should Investors Be Worried?

The BNB chain's total locked value has fallen more significantly than its competitors, but the network's decentralized applications aren't going away.< /p> Total cryptocurrency market capitalization fell from $860 billion on June 30 to $1.030 billion currently, a 20.6% relief in five weeks. Ether (ETH) might have been the absolute leader among the biggest smart contract chains, but BNB managed to gain 39% over that time.

The BNB token's year-to-date performance remains negative at 43%, but the current market cap of $49.5 billion ranks it third, excluding stablecoins. Additionally, the main decentralized application (DApp) is PancakeSwap - 843,630 active addresses in the last seven days - which runs on BNB Chain.

The token primarily serves as a utility asset within the Binance exchange ecosystem, allowing traders to earn rebates or participate in token offerings. So technically, the BNB token does not give any ownership rights or dividends to any company or service owned by Binance.

However, according to Bloomberg, the U.S. Securities and Exchange Commission (SEC) is investigating whether the initial token offering (ICO) of BNB tokens in 2017 consisted of a sale of unregistered securities. A digital asset may be subject to SEC scrutiny if buyers intend to profit from the efforts of a company or project funded by the capital raise.

To understand whether the 39% rise in BNB in five weeks is justified, investors need to analyze network usage, including smart contract deposits, active users, and adoption of decentralized applications.< /p> Mixed data from smart contract repositories and DApp usage

BNB Chain's leading decentralized application metric began showing weakness in early May, with the total value of the network l...