Key Insights:
- BNB chain outperformed all other blockchains in fee revenue in the last 24 hours.
- The Binance Coin futures open interest clocks a new high as BNB price pushed above $1,300.
- Short liquidations on the rise, revealing expectations of a pivot as price pushes deeper into overbought territory.
BNB chain is in the spotlight, and this time it is not because of its native coin BNB, whose price has been pushing into new highs.
While there was no doubt that BNB benefited from recent liquidity rotation, market data also revealed that the BNB network has been winning in key areas.
On-chain data revealed that the BNB chain has been experiencing significant growth, especially in terms of revenue. A clear indicator that the network has been achieving robust utility as the market got heated over the last few weeks.
To put things into perspective, BNB chain fees in the first week of September amounted to $2.17 million.
However, fees registered a significant uptick in the weeks that followed, and recently peaked at $9.28 million between 29 September and 5 October.
The surge in network fees reflects the aggressive uptick in network activity within the last few weeks.
Recent market data also revealed that network activity on the BNB chain was strong enough for it to become the leading blockchain by revenue.
BNB chain had just over $1,6 million in fees on 5 October, topping the list compared to other blockchains.
Hyperliquid L1 was the runner-up with about $1.5 million in 24-hour fees. Interestingly, daily fees surged to $2.48 million on 6 October.
BNB Chain Activity Attracts Robust Derivatives Demand
The robust network activity that BNB achieved in the last few days boosted investor confidence, and this was evident in BNB price action.
The latter has been soaring to new highs, which has consequently attracted more attention.
BNB price action was not the only BNB chain-related aspect that has been pushing to new historic highs.
Its open interest pushed above $2.7 billion for the first time in the last 24 hours, CoinGlass data showed.
The surging open interest was an important observation considering the bullish circumstances. Rising open interest often coincides with more interest in the coin.
This tends to yield more demand but also rising expectations of a retracement, which results in liquidation events.
Unsurprisingly, recent market data signalled that whales have been taking profits, especially in the last 24 hours.
According to Coinglass, Binance whales sold more than $190 million worth of BNB in the last 24 hours on the spot segment. OKX only contributed $2.98 million worth of demand.
Bearish expectations were noteworthy in the derivatives segment. Whales executed $1.76 billion worth of short positions on Binance futures and $752 million shorts on OKX futures.
BNB Price Short Liquidations Surge to Multi-month Highs
The rising bearish expectations among the whales reflected historic scenarios characterized by massive BNB price spikes and record-high open interest.
However, the fact that price extended its upside also meant that shorts traders found themselves at a disadvantage.
More than $16 million worth of shorts were liquidated in the last 24 hours. This was the highest single-day liquidation event in more than 6 months.
BNB price achieved over $66 million worth of positive netflows in the last 24 hours.
This confirmed that demand remained strong, but the rising bullish expectations, especially in the whale cohort, could signal that the recent uptrend might be losing momentum.
Investors remained confident of BNB’s potential to push as high as $1,500 in the next few days.
The cryptocurrency managed to surpass XRP and Tether, securing its spot as the third-largest cryptocurrency by market cap.