- Launchpool was a major catalyst in the recent price spike of BNB.
- Social media has become a major part of Stakers’ strategy.
Over the last few days, many altcoins have gained momentum in the crypto industry. However, Binance Coin [BNB] The growth of this altcoin is driven by factors that are completely different.
Sudden interest surge
Launchpool is responsible for the recent surge in interest around BNB. BNB’s Launchpool has created an incredibly self-reinforcing system.
BNB holders can increase their profits by reinvesting and selling significant airdrops.
It has caused not only a rise in the price of BNB, but also an increase in mentions on social media.
Several users have posted about BNB staking on X, formerly Twitter, as it helped them to access more liquidity through Launchpool.
The Social Volume of BNB increased, and the sentiment towards the token has also risen.
There are negative consequences to BNB’s strategy of relying on Launchpool.
Any negative developments or program changes could have a detrimental impact on BNB’s price and expose it to dependence risks.
Launchpool’s self-reinforcing loop can also lead to speculation, which could cause BNB to be overvalued in relation to its fundamentals.
A market bubble could result from this scenario, in which prices are mainly driven by speculation, rather than actual value. Once the market’s sentiment has changed, there will be a dramatic correction.
Performance of BNB
BNB has appreciated in price by 13.88% over the last 24-hours. BNB traded at $612.54 as of press time.
BNB’s Relative Strength Index surged up to 72,4, indicating that it may be nearing overbought status.
Chaikin’s Money Flow for BNB is now at 0.31. It indicates that there has been an increase in buying pressure, and a positive flow of money into the BNB token.
Click Here to Read Binance Coin’s [BNB] Price Prediction 2024-25
CMF values above zero may indicate a dominant buying force, and a potential bullish trend in the market.
CMF’s recent price increase is similar to the one seen in BNB and reflects the growing confidence of investors in this asset.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
Source: ambcrypto.com