untitled design

Binance Coin Price Drop Leads To Liquidation Of $ 120 Million Long Positions

Binance Coin (BNB) had a tumultuous start to the week. After rising 23%, the coin collapsed, triggering the liquidation of long positions worth $ 120 million.

Binance Coin remains one of the best performing altcoins in 2021. The coin started the year at $ 37, but peaked at $ 641 on April 12. Thus, in the first few months of the year, the token has risen in price by more than 1600%.

Now, however, from a technical point of view, BNB is facing massive resistance. Less than an hour after hitting a new high, the price dropped to $ 530. As a result of the fall in the market, longs (long positions) in the amount of $ 120 million were liquidated.

BNB / USD Chart TradingView

As of this writing, BNB has partially recouped its losses and is trading in the $ 573 area.

The success of Binance Coin is directly related to the popularization of Binance Smart Chain (BSC). According to the block observer Bscan, the number of daily transactions has grown by more than 1,300% since the beginning of the year and peaked at almost five million on April 8. It was previously reported that Messari analysts suspected BSC of centralization.

BSC Daily Transaction Chart by BscScan

Binance Smart Chain is used by many Decentralized Finance (DeFi) platforms and supports smart contract functionality.

Since launching in September 2020, BSC has helped Binance reclaim a significant share of the Ethereum market. Along with BSC, Binance’s decentralized exchange (DEX), PancakeSwap, has helped add value to the ecosystem.

These new features and developments have contributed significantly to the soaring cost of BNB. A year earlier, one BNB token was worth a little more than $ 14. Its total market capitalization has grown to over $ 90 billion, making it the third largest after Ethereum.

Given that Ethereum’s market cap is around $ 250 billion, BNB needs to grow 36% to squeeze out the leader. If that happens, ETH will drop in second place for a second time after Ripple (XRP) briefly climbed above Ethereum.

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular