BNB has seen growth in the DeFi space as dApps have performed relatively well. However, the BNB token has not shown promising signs.

  • Despite the SEC lawsuit and volatility, BNB’s DeFi space continues to grow.

  • However, the price of BNB failed to recover and continued to fall.

The SEC’s lawsuit against Binance [BNB] has had a negative impact on both the protocol and the token. Despite this, the BNB ecosystem has shown resilience and continues to maintain its dominance in the space.

BNB’s DeFi sector remains unaffected

According to DefiLlama, despite facing fierce competition and market volatility, BNB Chain still ranks third in terms of total value locked (TVL). Notably, BNB Chain ranks third among blockchain ecosystems with TVL exceeding $100 million. This further highlights that it remains unfettered despite market uncertainty.

A large portion of the TVL comes from DeFi dApps on the BNB network. The top five protocols on the BNB chain are all in the DeFi space, accounting for a total of 69.8% of the chain’s total TVL.

Still, despite BNB’s relatively stable TVL, it has declined in 2023. BNB Chain’s TVL has slightly decreased by 3.2% since the beginning of the year. This decline is mainly attributed to the decrease in TVL of Pancake Swap and Wombat, indicating that BNB’s dApps are in a period of adjustment.

While BNB’s DeFi sector has been relatively unaffected by market uncertainty, the price of the BNB token has not been.

Prices continue to plummet

BNB token price has fallen by 26.16% since May 29. During this period, the price showed multiple lower highs and lower lows. Moreover, it established a bearish trend until it tested the $219.9 support level on June 10. Since then, BNB entered a consolidation period, fluctuating between $257 and $219.

Both the Relative Strength Index (RSI) and the Chaikin Money Flow (CMF) have been relatively high over the past few days. This suggests that momentum and money flows favor the bulls at press time.

Although a bullish trend is yet to develop, if the price can retest and weaken the $257 price level in the future, there could be chances of a breakout in the future.

Additionally, BNB’s market value to realized value (MVRV) ratio shows that most addresses holding BNB are losing money. This suggests that there is less selling pressure on BNB at press time.