BNB Chain tokens register gains: Here’s why

  • BNB was up by over 10% last week, while its Open Interest increased.
  • Positive sentiment around CAKE dropped, but its price went up by over 80%.

Over the last few days, tokens in the BNB Chain [BNB] ecosystem have registered promising growth. The tokens include BNB Chain’s native token, BNB, along with PancakeSwap [CAKE].

A closer look at the blockchain’s recent developments shed light on what was actually going on.

BNB chain tokens are on the rise

Lookonchain’s recent tweet revealed several tokens in the BNB Chain ecosystem have been on a gaining spree for over a week now. Not only popular coins like BNB and CAKE, but other coins like Trust Wallet Token, Venus, and ApolloX also made it to the list.

The tweet also mentioned a possible reason that could have played a major role in this episode. Notably, BNB Chain is expecting its Binance Blockchain Week, which is scheduled to take place on 8 November, to stir up positive sentiment in the market around BNB Chain tokens.

However, was the hype around Binance Blockchain Week the only thing that’s causing this pump, or were there other things contributing to this price surge?

A closer look at BNB

To begin with, let’s first take a look at BNB Chain’s top token, BNB. As per CoinMarketCap, the token’s price had surged by more than 10% over the last week, which looked promising.

Not only did its value rise, but a similar trend was also noted in terms of its volume. At the time of writing, it was trading at $251.03 with a market capitalization of $38 billion.

In fact, bearish sentiment around the token dropped by over 3.8% last week. Another bullish signal was BNB’s AltRank, which registered an improvement. Regardless, BNB’s Social Engagements dropped last week.

Source: LunarCrush

Coinglass’ data revealed that BNB’s Funding Rate surged substantially during its price hike. This clearly indicated its popularity in the derivatives market, even when it was trading at a higher price. AMBCrypto’s analysis also revealed that BNB’s price might continue to pump.

This seemed likely as the MACD displayed a bullish upper hand in the market. The token’s Chaikin Money Flow (CMF) was also well above the neutral mark. Nonetheless, BNB’s price had touched the upper limit of the Bollinger Bands, which could be a sign of trouble.

BNBUSDT 2023 11 07 14 35 55

Source: TradingView

PancakeSwap’s growth is extraordinary 

While BNB’s price rose by 10%, CAKE’s price went up by a whopping 83% last week. At the time of writing, it was trading at $2.27 with a market capitalization of over $536 million. 

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However, unlike BNB, CAKE’s trading volume plummeted substantially over the last 24 hours. Not only that, but its MVRV ratio dropped last week, suggesting a trend reversal.

Sentiment around the token also started to turn bearish, as evident from the drop in its positive sentiment.

PancakeSwap on BNB CAKE 14.38.25 07 Nov 2023

Source: Santiment

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