- Launchpool acted as a catalyst for the recent spike in BNB’s price.
- Stakers have become vocal about their strategy on social media.
Many altcoins in the crypto sector have been gaining momentum over the past few days. However, Binance Coin [BNB] stands out amongst these altcoins, as its growth has been driven by completely different factors.
A sudden surge in interest
The recent spike in interest surrounding BNB can be traced back to its Launchpool. BNB has successfully created a self-reinforcing cycle through this platform.
BNB stakers capitalize on their significant airdrops by selling them and reinvesting in BNB, thereby boosting returns for forthcoming Launchpool releases.
This has not only caused a surge in price for BNB but has also caused an uptick in social mentions.
Notably, multiple users posted on X (formerly Twitter) about BNB staking, which helped them access more liquidity via Launchpool.
Source: X
As a result, Social Volume for BNB grew, while the positive sentiment around the token also surged.
Source: Santiment
However, there are also negative implications associated with BNB’s reliance on the Launchpool strategy.
If BNB’s value becomes overly dependent on the performance of Launchpool, any adverse developments or changes to the program could negatively impact BNB’s price, exposing it to dependency risks.
Furthermore, the self-reinforcing cycle created by Launchpool may lead to speculative behavior, potentially causing BNB to become overvalued relative to its underlying fundamentals.
This scenario could eventually result in a market bubble, where prices are driven primarily by speculation rather than real value, leading to a sharp correction once market sentiment shifts.
Current performance of BNB
In the last 24 hours, the price of BNB had appreciated by 13.88%. At press time, BNB was trading at $612.54.
The Relative Strength Index (RSI) for BNB has surged to 72.4, indicating that the token may be approaching overbought territory.
The Chaikin Money Flow (CMF) for BNB has surged to 0.31, indicating increased buying pressure and positive money flow into the token.
Read Binance Coin’s [BNB] Price Prediction 2024-25
A CMF above zero suggests that buying pressure is dominant, potentially signaling bullish momentum in the market.
This surge in CMF aligns with the recent price surge observed in BNB, reflecting growing investor interest and confidence in the asset.
Source: TradingView
