Key Takeaways:
- Binance announced the launch of the first DeFi project on its platform.
- Its native token BNB jumped to target $400.
NEW DELHI (CoinChapter.com) — Cryptocurrency exchange Binance has moved into Decentralized Finance. The move helped its native token, Binance Coin (BNB), target a new high once it breaks out of a parallel channel.
The exchange announced the introduction of the PancakeSwap Mini Program on its platform, Binance’s first DeFi project. Additionally, along with PancakeSwap, the platform announced the launch of the Binance DeFi Wallet.
Binance defined the wallet as “a non-custodial decentralized Web3 wallet within the Binance application.”
Binance users would need to update to the latest version of the app to create a DeFi wallet, transfer funds, or use DApps like PancakeSwap. The Mini program started rolling out on Mar 17. The crypto exchange would gradually roll out the update to all users over the next few days.
Also Read: Binance seeks expansion beyond the crypto sector amid heavy regulatory scrutiny.
CeDeFi is an important strategy for Binance’s development. As part of the strategy, the PancakeSwap Mini Program is only the beginning of integration of DeFi projects into the Binance ecosystem.
Mayur Kamat, Binance Head of Product, said
The cooperation with PancakeSwap would open the DeFi world for Binance users. The platform claimed the Mini program would provide new crypto users an easy way to engage in the Ce-DeFi experience.
Meanwhile, Binance’s native token Binance Coin (BNB) increased its gains in the current week, as the launch of DeFi on Binance’s platform pushed the token near $400.
BNB began the week with a low of $359 on Mar 14 before moving to a high of $393 on Thursday, jumping 9.5% over four days. The Binance token had fallen out of the descending channel it had been moving in since Nov 2021 but re-entered in two weeks on Feb 4.
Binance Outshines Other Exchanges in 2022 Market Share
Meanwhile, a recent report revealed that Binance led the centralized crypto exchange market in terms of market share. In addition, the crypto exchange recorded an increase in market share every month, with an average increase of 2% month-on-month (MoM).
The monthly rise was only broken in Jun 2022, when Binance’s market share dropped by one percentage point. Binance’s market share jumped more than 63% in 2022 to account for more than 63% of the crypto market, helping the exchange keep its mantle as the world’s largest exchange by trading volume.
The exchange’s rise came against the backdrop of declining spot trading volumes in the crypto sector. Moreover, the crypto market dropped 20% off its trading volume in Q4 2022, losing $520 million. However, volumes spiked in Nov during the panic trading following the fall of the FTX exchange.
Following FTX’s halting of withdrawals and Chapter 11 bankruptcy filing, investors rushed to exit their positions in various tokens related to the exchange. This resulted in November’s trading volume reaching $0.91 trillion, up from the previous month’s $0.74 trillion.
The report noted.
Furthermore, the report noted that FTX’s competitors, such as Binance, Coinbase, Huobi, etc., benefitted from the now-defunct exchange’s demise. Binance benefitted the most from FTX’s downfall, increasing its market share by nearly 6%.
Binance Coin Price Charts
BNB’s price movement has been almost horizontal since Feb 2022. The Binance token’s recent uptrend brought its prices above the upper trendline of the descending channel. But bears seemed to have moved into book profits, as BNB started Friday moving downwards.
If the sell-off continues, the Binance token would likely fall to immediate support near $378. A fall to immediate support would bring BNB back inside the descending channel, starting a price movement toward the channel’s support line.
Also Read: Binance is now officially legal — after being named in many illegal things.
Further sell-off could see the support at $362 come into play. Finally, BNB has been moving above support at $352 since the last week of Jan.
Conversely, if bulls manage to start an uptrend, BNB has immediate resistance near 50-day exponential moving average (50-day EMA, yellow wave) near $397. If BNB flips immediate resistance, the Binance token will move to challenge resistance at $413.
A sustained uptrend could see BNB challenge resistance from its 100-day EMA (violet wave) near $427.
Meanwhile, the relative strength index for BNB is neutral, clocking 50.56 on the daily charts. In detail, the RSI measures the magnitude of recent price changes to analyze overbought or oversold conditions.
At the time of writing, BNB was trading at $385, down 1.71% on the day.
