Key Takeaways:
- BNB price eyes a 4% slide.
- On-chain metrics don’t favor the bulls as Binance Smart Chain loses market share.
- Binance gains an operating license in Dubai. Will it be enough to lift BNB?
YEREVAN (CoinChapter.com) — Binance coin BNB price inched 3% higher in the previous week’s Bitcoin-copycat move and reached $243.5 in the Asian-Pacific session on July 31. However, the token risks paring its gains as bulls watch the support at $233.
BNB price is primed for a 4% weekly loss
In detail, the token has had a rough quarter due to the exchange’s legal woes. However, the recovery might not come soon, as the coin is still traded within a consolidation channel, relevant since May 2022.
The setup entails two parallel trendlines with a powerful mid-range. After the mentioned SEC-related price cascade, BNB price action repeatedly retested the channel’s support, unable to breach the resistance at $254. Given the declining trading volumes, another support retest appears likely by the end of the week on Aug 5, which would mean a 4% slide for BNB, effectively erasing the weekly gains.
Additionally, Binance Smart Chain’s total value locked (TVL) has not yet recovered. After losing over $1 billion throughout June and July, the metric reached $3.33 billion on July 31.
The daily revenue cascaded alongside the TVL, going from $119,000 at the start of Q2 to just under $30,000 on July 31.
Additionally, the BSC fell behind its competitor Tron in the number of active monthly users, with 1.38 million against Tron’s 1.53 million, and shaved 4% of its DeFi market share year-to-date, going from 12.3% to 8.3%.
Binance gains operational license in Dubai
According to the latest press release, Binance FZE [Free Zone Establishment] is the first virtual asset exchange to receive an operational MVP [minimum viable product] license in Dubai’s Virtual Asset Regulatory Authority (VARA).
This stage follows VARA’s issuance of the preparatory MVP Licence to Binance in September 2022, which mandated specific conditions to be met in order to be authorized for operations.
Successful fulfilment of these requirements, has allowed for Binance FZE to be permitted by VARA to operate two licensed activities – VA Exchange Services; and VA Broker-Dealer Services – limited to Institutional and Qualified Retail investors in Dubai.
mentioned the press release.
The transition means that Binance FZE users can access previously unavailable services, such as converting cryptocurrencies to fiat, according to Financial Action Task Force (FATF) guidelines.
