Over 6% More BNB Weekly Active Addresses A Rally Coming?

Despite the crypto market collapse, BNB, formerly Binance Coin, has hardly gone below $500 since March. BNB has held up well after major cryptocurrencies lost price, underpinned by robust demand.

Despite this strength, CoinCodex's newest BNB price projection predicts a 25% climb to $650 by October 10, 2024. Investor sentiment is pessimistic, and the Fear & Greed Index is 33, indicating market uncertainty.

The ambiguous prognosis raises issues about BNB's near-term future. Long-term growth is possible, but recent coin volatility and market dynamics need short-term prudence.

BNB has been sideways with big ups and downs since March. After every drop, BNB has returned above $500, indicating solid demand. On September 6, it dropped to $470 but rose to $520 by press time.

This is also in line with growing altseason forecasts, as Bitcoin's slump boosts altcoins like BNB. Investors believe BNB will continue to benefit from this pattern as it did in the past when alternative cryptocurrencies demand increased.

On-Chain Activity and Network Demand
Recently released Dune Analytics on-chain data shows encouraging and worrying BNB developments. The number of active Binance Smart Chain addresses rose 6% week-over-week, showing growing interest in joining.

Active addresses grew, while transaction volumes decreased 1.1% throughout the week, suggesting that increasing involvement has not yet translated into high network activity.

Network costs are falling due to less activity, which may affect the BNB pricing. High network utilization has traditionally driven BNB demand, and its protracted reduced activity may limit its upside potential.

Rally Around the Corner?

Despite gloomy attitude and recent price fluctuations, some experts believe it might run, especially as altseason heats up. Bitcoin supremacy usually declines, allowing altcoins, notably BNB, to gain market attention and money.

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