Why BNB Price Stability Can Threaten XRP’s Market Position
The post Why BNB Price Stability Can Threaten XRP’s Market Position appeared on BitcoinEthereumNews.com.
BNB, the native cryptocurrency of the BNB chain, has shown signs of stability despite recent price fluctuations. While the price experienced a decline over the past month, June’s price action failed to make a significant impact. This relative stability can be attributed to the strong backing of long-term holders (LTHs) and the continued growth of BNB’s use cases, particularly within the decentralized finance (DeFi) sector. BNB Holders Save The Day Long-term holders (LTHs) are one of the key factors behind BNB’s price stability. These investors, who hold their assets for extended periods, have a considerable influence on the market. In the case of BNB, their minimal activity in selling has proven beneficial for the asset. Liveliness indicates that LTHs have rarely moved their positions in the last five months, and the consistent decline in the indicator is a sign of the same. The low movement from LTHs helps to prevent major sell-offs, providing crucial support to the price. This stability fosters an environment for gradual recovery and allows BNB to maintain a steady price. XRP Liveliness. Source: Glassnode Another crucial factor driving BNB’s price stability is its role within the broader cryptocurrency market. BNB Smart Chain (BSC) has a total value locked (TVL) of $5.95 billion, which significantly contributes to BNB’s ongoing growth and stability. The BNB network’s dominance in the DeFi space is one of the major advantages over other cryptocurrencies like XRP, which currently lags behind in this sector. With over 900 protocols operating on BSC, BNB’s use case continues to expand, ensuring its ongoing demand in the DeFi market. This increasing usage helps cement BNB’s position as a leading cryptocurrency. BSC TVL. Soiurce: DeFiLlama However, XRP’s strength lies in its institutional demand, an area where BNB has yet to gain significant traction. XRP’s appeal among financial institutions…
