The recent false alarm of the U.S. government selling its Bitcoin holdings sent shockwaves throughout the cryptocurrency market. The impact was felt not only by Bitcoin but also by Binance’s exchange token, BNB. BNB took a hit and plunged to $301, its most significant drop in nearly two months. However, Binance recently announced a new feature, Trading Bots, that could help bring BNB back to normalcy.
Trading bots are automated software that helps traders buy and sell cryptocurrencies at the right time. Binance’s Trading Bots feature will allow users to create a new spot and futures grids and run them through their Trading Bots account while simultaneously trading on the same symbol through their futures account. Additionally, users will earn hourly trading fee savings for the Trading Bots account when they use their BNB balances.
The announcement of this new feature catalyzed trading activity on the BNB Chain. Daily active users rebounded to a 5-week high in the last 24 hours, and the surge in users boosted the number of transactions processed on the chain. However, the total value locked (TVL) on the BNB Chain fell by more than 3% in the last 24 hours to $5.22 billion, extending its month-long winless streak. The development activity on the chain remained tepid after recording a steep fall earlier in the week, indicating that future enhancements on the chain might be delayed.
Despite the drop in TVL and tepid development activity, investors’ sentiment towards BNB was buoyed by an uptick in the supply held by large addresses in the last 24 hours. While increased network traffic was a joy for BNB enthusiasts, the chain’s liquidity continued to tumble. Binance’s Trading Bots feature is what BNB needs to regain its momentum and bring back the liquidity that has been lost.
Binance’s announcement of the Trading Bots feature may be the key to helping BNB recover from the recent market turbulence. With more functionalities to be released by June 2023, the future looks bright for Binance and BNB. However, investors must keep an eye on the development activity on the BNB Chain and be prepared for any delays in future enhancements. Despite these challenges, Binance remains the world’s largest cryptocurrency exchange and is well-positioned to weather any storms that come its way.