BNB Reststaking: A Potential Catalyst for TVL Recovery and Price Upside

BNB Chain's native coin, Binance Coin [BNB], recently embarked on a swing low that could lead to another rally in its mid-to long term range.

Binance Coin [BNB] recently announced a move that could provide short-term momentum, leading to another rally in its mid-to long term range.

The network announced plans to introduce BNB restaking, a move that may encourage more BNB staking and, subsequently, increase the network’s TVL.

BNB restaking will allow holders staking on DeFi protocols to stake already staked BNB in pursuit of more rewards.

BNB Chain’s TVL has been declining since March. At press time, the network had a TVL of $4.215 billion.

This marks a significant decrease from the $5.8 billion TVL BNB Chain had at the height of the March rally, which also coincided with the overall market rally.

However, the network’s latest announcement highlighted a move that could lead to another rally in its mid-to long term range.

The latest announcement highlighted a move that may provide short-term momentum.

Not only that, but also potentially lend enough momentum to push out of its current range.

The network recently announced plans to introduce BNB restaking.

As far as the potential impact is concerned, the move may encourage more BNB staking.

As a result, we may witness a surge in TVL in the coming months.

BNB Chain’s TVL has been on a downward trajectory since March. At press time, the network had a TVL of $4. 215 billion.

Source: DefiLlama

The BNB restaking might be BNB Chain’s latest attempt at curbing TVL outflows.

The network had a $5.8 billion TVL at the height of the March rally.

This also aligned with the overall state of the market, which had been experiencing a confidence erosion in the last few months.

Allowing BNB restaking may allow the TVL to embark on recovery. In addition, this may encourage more BNB accumulation, in turn aiding in the cryptocurrency’s potential upside.

These outcomes would particularly be pronounced if the overall crypto market condition improves.

BNB chain transaction count reflects…

BNB has also been experiencing lower organic on-chain demand as the market cooled down in the last five months.

This is evident in the BSC network transaction count, which dropped off considerably between March and August.

Source: DefilLlama

BSC has, so far, registered a significant uptick in network transactions from August lows.

Daily on-chain transactions fell as low as 2.59 million transactions on the 18th of August, and have since climbed back above 3 million transactions at press time.

Read Binance Coin’s [BNB] Price Prediction 2024–2025

As far as price action is concerned, BNB exchanged hands at $512 at press time after experiencing a slowdown in its recent bullish momentum.

This has notably taken place before the RSI could recover above the 50% level, indicating that the bullish momentum was off to a weak start.

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