The long-term holders of BNB were forced to liquidate their positions worth $1 million on March 27th.In the past 24 hours, the net inflow of Coin On Exchange has been negative
- The long-term holders of BNB were forced to liquidate their positions worth $1 million on March 27th.
- In the past 24 hours, the net inflow of Coin On Exchange has been negative.
After the Commodity Futures Trading Commission (CFTC) accused Cryptocurrency giant and founder Changpeng Zhao (CZ) of violating the compliance rules to expand business, the original token of KingSafe, BNB, plummeted nearly 6% in the past 24 hours.
According to CoinMarketCap data, on March 27th, BNB's market value evaporated by over $3 billion, causing ripples throughout the encryption industry.
Long term BNB holders who bet on high prices were caught off guard and forced to liquidate positions worth $1 million per data from Coinglas.
Binance's capital outflow increases
The lawsuit filed by CFTC accused Binance of operating an illegal Cryptocurrency derivatives exchange, and in turn used unfair practices to avoid regulatory review of American customers.
Since its development, $1.19 billion worth of tokens have flowed out of exchanges as more and more FUDs encourage users to deposit their funds in self custody rather than centralized exchanges (CEX). In the past 24 hours, the net inflow has been negative.
The situation with DeFi doesn't seem very good either. The trading volume of BNBChain's centralized exchange (DEX) has significantly decreased.
Data from DeFiLlama shows that since hitting a four month high on March 12th, the activity has contracted by as much as 70% as of the time of publication. The total weekly trading volume has also decreased by nearly 25%.
Assess the current status of BNB
According to Santiment's data, the daily trading volume that suffered losses last week jumped by over 600%. However, the whale trade rose to its highest level since March 22nd after the lawsuit, indicating that large addresses may be buying on dips.
Due to the overall decline in network profitability, the 30-day MVRV ratio has been declining since mid March.
The news of regulatory actions has also led to an increase in BNB's short positions. According to Coinglas' data, the long/short ratio has dropped below 1 as investors are unwilling to place heavy bets on the token.
At the time of writing, BNB's trading price was $310.72.
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