BNB Price On The Verge Of Recovery As Sentiment Improves?

Is BNB coin price on the verge of a robust recovery? That is the question that analysts have been pondering on, especially after its performance in the second half of the week.

Binance coin market sentiment registered a noteworthy sentiment improvement on Thursday, which was not a fluke.

Instead, it highlighted a positive market reaction after reports that U.S President Donald Trump gave former Binance chief CZ, a full pardon.

CZ was previously accused of enabling money laundering in 2023 and even pleaded guilty of those charges. This was around the same time that the U.S government was cracking down on centralized exchanges.

Some analysts believe that Trump’s pardon of CZ highlights a shift to a pro-crypto stance. Perhaps one that could signal that less pressure on centralized exchanges looking to push their operations into the U.S.

However, not everyone was pleased with CZ being pardoned. U.S congresswoman Maxine Waters claimed that President Trump favoured CZ because he lobbied for the Trump family and World Liberty Financial.

Meanwhile, CZ responded to being pardoned by expressing his commitment to making America the crypto capital of the world.

BNB Price rallies by Over 5% after news of CZ’s pardon

The excitement around CZ’s pardon trickled down to BNB price. The cryptocurrency bottomed out at around $1,052 earlier this week but has since recovered above $1,100. It exchanged hands at $1,128 at press time.

Further investigation into BNB coin demand in the last 48 hours revealed that whales were not as enthusiastic about the upside judging by their weak demand.

The whale cohort contributed about $5.7 million worth of sell pressure in the spot segment during the same period and less than $1 million in the spot segment.

The rest of the crypto market contributed about $40 million worth of net inflows into BNB on Thursday.

More than $6 million worth of net spot outflows were observed in the last 24 hours. This may indicate that the mid-week demand wave risked further weakness.

BNB Network Shows Signs of Rising Network Activity

CZ’s pardon by President Trump may have sparked some short-lived excitement but it was likely not the only reason for BNB’s recent upside.

BNB chain recently demonstrated a surge in DeFi activity in the last 7 days. DEX volume on the BNB chain dropped as low as $2.73 billion on 18 October.

This was the lowest level that it has achieved so far this month.  However, DEX volume has been on a steady recovery since then.

For context, BNB chain DEX volume surged to $3.76 billion in the last 24 hours. This marked the highest level observed in the last 7 days.

The recovering DEX volume confirmed that network activity has been recovering after previously experiencing a decline. Tariffs fears and heavy liquidation triggered the network activity dip.

The recent price recovery this week and rising DEX volume were also accompanied by a healthy spike in network activity.

For example, BNB chain had about 2.52 million active addresses on 19 October but that figure was up to 3.09 million active addresses as of 23 October.

Similarly, transactions on the BNB chain surged from 18.84 million TXs to 22.63 million TXs within the last 7 days.

These data points confirmed that BNB chain was indeed experiencing some network activity recovery. This may underscore potential demand ahead for the Binance coin.