Binance Chain's Perp Dominance: Is BNB Missing Out on the Action?
Crypto Perpetrators Witness 800% Surge - Is Binance Coin the Next Risky Investment?
Ritika Gupta & Saman Waris
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Binance Chain's [BSC] perpetual (perp) dominance soared by a whopping 800% in the past two months, accounting for almost 15% of the market with daily volume hitting record highs. But what's the deal with Binance Coin [BNB] and DeFi liquidity on-chain? Is this surge in perp trading bypassing BNB?
Perp Frenzy on BSC
Data from DeFiLlama shows that BSC leads the pack in 30-day perp volume, raking in an impressive $31.75 billion. It's outperforming heavyweights like Ethereum [ETH] and Solana [SOL], and not just for the month, but day by day. As a result, BSC now boasts a stunning 51.2% perp dominance among the top chains.
Source: DeFiLlama
It's obvious that traders are after the thrill of "high-risk, high-reward" altcoins on BSC, deploying leverage across the chain. But where does BNB stand in this? Is the market leaning towards BNB perps with equal zeal, or is the native token being overlooked amidst the excitement elsewhere?
The BNB Flow Question
The surging perp activity on BSC undeniably boosts BNB's exposure. Logic plays a part here: More trades mean more gas fees, more transactions, and more demand for BNB across the board. This is supported by data, as BNB's daily trading volume climbed 12% month-over-month.
Simultaneously, stablecoin supply on BSC reached a two-year high of over $10.3 billion, up nearly 7% in a month. Solid liquidity flowing in.
Zooming in on BNB's flows, the impact is even clearer. BNB's DEX volume set a yearly high of $8.598 billion on June 10, coinciding with a two-week high of $674 for BNB.
Source: DeFiLlama
However, Futures Open Interest remains stubbornly below $800 million, far from the $1.4 billion peak from last December, when BNB hit its all-time high at $750. According to our analysis, this is a significant structural divergence.
Capital seems to be rotating into spot markets, not leveraged perps. Despite BSC becoming a hotspot for perp traders, BNB's own perp market hasn't absorbed that flow. The trade remains spot-led.
The result? In spite of the perp-driven frenzy, BNB has continued to outperform major caps on the monthly chart, holding its ground while others shed 15-20% amid cascading liquidations.
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[Enrichment Insights: Although there isn't specific evidence pointing to a shift in trading activity from leverage perpetual markets to spot markets for BNB, increased activity on BSC and Binance's strategic promotions could be driving engagement across various markets. BNB's price has shown resilience and potential for upward movement, which might attract more traders to both spot and leverage markets.]
- Binance Chain's perpetual (perp) dominance has increased dramatically, with BSC accounting for nearly 15% of the market and daily volume hitting record highs, but there are questions about the role of Binance Coin [BNB] and DeFi liquidity on-chain.
- Data from DeFiLlama shows that BSC leads in 30-day perp volume, outperforming heavyweights like Ethereum [ETH] and Solana [SOL], with a 51.2% perp dominance among the top chains.
- Traders are seeking high-risk, high-reward altcoins on BSC and deploying leverage across the chain, but it's unclear whether the market is equally enthusiastic about BNB perps.
- The surging perp activity on BSC boosts BNB's exposure, as more trades mean more gas fees, more transactions, and more demand for BNB. However, Futures Open Interest remains below $800 million, far from its peak.
- Capital seems to be rotating into spot markets, not leveraged perps, despite BSC becoming a hotspot for perp traders. This could be attributed to increased activity on BSC and Binance's strategic promotions driving engagement across various markets.
- In spite of the perp-driven frenzy, BNB has continued to outperform major caps on the monthly chart, indicating potential for upward movement which might attract more traders to both spot and leverage markets.
