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Binance’s BNB token has outperformed the 10 top crypto coins over the past week by 18%.
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BSC is the dominant DEX with a volume of $2.61 billion on March 18th. It surpasses ETH and SOL.
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Crypto analyst believes BNB will reach $1,000 in the near term and $5,000 at the end of the cycle.
Binance’s BNB has surged 18% in the last week. It is currently trading at around $630.85, outperforming the top ten cryptocurrencies. According to CoinMarketCap, it even reached a high of $640.42 for the week.
This increase is due to Binance cofounder Changpeng Zhao investing in the BNB Chain based Mubarak (MUBARAK), resulting in a significant jump in Binance Smart Chain’s decentralized exchange (DEX).
How Does BNB Chain’s DEX Volume Compare?
BSC’s DEX volumes as of March 18 are $2.61 billion, surpassing Ethereum ($1.336) and Solana($1.219 billion). BSC’s DEX volume has surpassed Ethereum ($2.68billion) and Solana$2.4billion in the past week.
This shift is especially noteworthy, as Solana was previously the leader in the DEX market. However, BNB Chain’s performance in recent months suggests a change of market dynamics.
Related:BNB Surges 7% after Binance Claims $2 Billion from Abu Dhabi’s MGX
BNB Chain Adoption Drivers
BNB’s increased trading activity is partially due to the increasing use of PancakeSwap as its leading DEX. Low fees and fast transactions on the platform have lured users away from Ethereum-based platforms.
In December, PancakeSwap launched the Springboard memecoin platforms, making token creation easier. This has further boosted Binance’s eco-system.
BNB Chain’s recent surge is a challenge to Ethereum, which has historically led in the DeFi sector. With its DEX volume at $1.012 Billion, BNB Chain’s recent surge poses a serious threat. If this trend continues then BNB Chain may become a dominant player within the DeFi space.
BNB Price Analysis
Crypto analyst CryptoELITES highlighted a critical level of resistance from 2021, which BNB is about to break. The analyst predicts that if this resistance is breached successfully, potential targets could be $1,000, $1250, $1500, or even $2,000.
BNB could reach $5,000 in a potential bull run. The chart provided by CryptoELITES clearly shows a cup-and handle formation, a classic pattern that supports a breakout up to $5,000.
The Relative Strength Index (RSI), which is currently at 56.39 indicates that BNB has entered a bullish territory, but it is not yet overbought. Bollinger Bands (BB), however, show BNB’s current price at $643.11 near the upper band. This indicates strong momentum, but also a potential short-term pullback if support holds.
Related:Related BNB Chain Now Tops Solana In DEX Trading, Price Increases
The 20-day Exponential Moving Average at $601 is a major level of support. If BNB maintains its support, higher prices may follow.
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