Amidst regulatory scrutiny and management adjustments, Binance Coin (BNB) misplaced its footing within the liquidity race, slipping to thirteenth place in This fall 2023, in keeping with Kaiko data on January 11. This stunning improvement contrasts BNB’s place because the third-largest cryptocurrency by market capitalization, elevating questions on its common liquidity.
Dogecoin Flips BNB In Liquidity Rankings
Kaiko’s findings, based mostly on spot buying and selling knowledge from a number of exchanges, revealed that Bitcoin (BTC), Ethereum (ETH), XRP, and Dogecoin (DOGE) emerged as the highest 4 most liquid cryptocurrencies in This fall 2023.
Liquidity is a metric that reveals how simply a given asset might be traded with out important worth impacts. One of many greatest assumptions is {that a} crypto asset greater up the market cap rating is extra liquid. Nonetheless, as Kaiko knowledge reveals, this isn’t often the case, as components akin to change itemizing play an enormous function.
DOGE flipping BNB in liquidity dynamics could also be attributed to a mixture of things, together with regulatory issues surrounding Binance, management adjustments throughout the firm, and the standing of Dogecoin. DOGE is the primary meme coin, and over time, it has continued to cement its place because the world’s largest meme coin by market cap regardless of heavy competitors. For example, regardless of the recognition of options like PepeCoin (PEPE) or Bonk coin (BONK), none has managed to flip DOGE.
Binance Authorized Battles, Value Recovers Steadily
In 2023, Binance grappled with authorized battles and inside restructuring. In early June 2023, the Securities and Trade Fee (SEC) filed fees in opposition to the change, alleging that it had violated securities legal guidelines by promoting unregistered securities. Moreover, Binance founder and CEO Changpeng Zhao stepped down from his government function in late This fall 2023, additional including to the change’s uncertainty.
Regardless of its authorized troubles, Binance agreed to pay a $4.3 billion settlement with the SEC and different US companies in late 2023. Whereas this settlement could have eased some regulatory issues, it’s unclear whether or not it is going to be sufficient to revive BNB’s liquidity place.
Associated Studying: Ethereum Traditional (ETC) Explodes Over 50% In Large Value Soar – Right here’s Why
To date, trying on the every day chart, BNB has been trending greater, shortly shaking off the weak spot of late November 2023. After Changpeng Zhao, the founder, exited because the CEO, BNB costs sharply fell. Nonetheless, with out follow-through and the neighborhood remaining optimistic concerning the platform’s prospects, costs recovered because the broader crypto scene rose, hoping the SEC would approve the primary spot Bitcoin ETF.
BNB is up 37% from November 2023 lows and is steady, trying on the efficiency within the every day chart. As a bull flag kinds, it’s unclear whether or not the coin will break greater above $340, establishing new 2024 highs or contract following Bitcoin.
Characteristic picture from Canva, chart from TradingView
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