BNB Coin, Dogecoin and Shiba Inu are struggling to hold critical support levels with the recent drop. Meanwhile, Bitcoin Ordinals have passed a new milestone.
BNB, DOGE and SHIB melt in double digits amid chaos
BNB Coin (BNB)
Binance-backed BNB is trading at lows in nearly a year. Meanwhile, market watchers speculate that Binance has prevented the BNB price from falling below a certain threshold.
Before Bitcoin’s sudden collapse on August 17, BNB traded above the $240 range despite Binance’s legal battle in various jurisdictions. However, market conditions sent the BNB price to its yearly low of $215 on August 19.
Over the past year, BNB has faced significant headwinds attributed to the problems Binance is facing. In June, the US regulator SEC classified BNB Coin as a security along with Binance USD (BUSD) in its lawsuit against the crypto company. This development has seriously undermined the demand for BNB Coin.
BSC volumes are also melting
The BNB price drop was also associated with decreased on-chain activity on Binance Smart Chain. DeFi activity fell drastically, with weekly exchange volume falling from a peak of $24.70 billion to $2.34 billion, according to DeFillama data. Additionally, the total value of assets on the network fell 87% to $2.84 billion, according to DeFillama.
This means that the reduced network activity in BSC is causing the demand for BNB to decrease.
Meanwhile, Binance CEO Changpeng “CZ” Zhao said on August 19 that market forces determine the price of BNB. CZ responded to market watchers who speculated that its exchange strongly advocated a drop in the price of BNB below $212. However, he questioned the rationale, stating that “the BNB price is determined by the market.”
Meanwhile, Binance is not the first to be accused of supporting the price of BNB. In June, CZ denied allegations that its exchange was selling Bitcoin to protect the cryptocurrency. Details as Kriptokoin.com
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