On-chain activity has significantly declined, with daily transactions dropping by nearly 50%, network usage falling from 51% to 19%, and DEX trading volume decreasing by $5.02 billion.
The stablecoin supply on BNB Chain has decreased by approximately $98 million, indicating a shift of capital away from the ecosystem rather than waiting for buying opportunities.
Despite being one of the top gainers earlier this year, BNB has shown signs of weakness after briefly holding above the $1,000 mark.
BNB touched an all-time high of around $1,375 but has struggled to maintain this level, now trading below $900.

Key Takeaways

On-chain activity has significantly declined, with daily transactions dropping by nearly 50%, network usage falling from 51% to 19%, and DEX trading volume decreasing by $5.02 billion.
The stablecoin supply on BNB Chain has decreased by approximately $98 million, indicating a shift of capital away from the ecosystem rather than waiting for buying opportunities.
Despite being one of the top gainers earlier this year, BNB has shown signs of weakness after briefly holding above the $1,000 mark.
BNB touched an all-time high of around $1,375 but has struggled to maintain this level, now trading below $900.

BNB’s fall below $1K explained: Why investors are leaving the chain

Declining On-Chain Demand

The recent drop in Binance Coin (BNB) to approximately $857—a 25% decrease—can largely be attributed to a noticeable decline in on-chain demand. This slowdown is not new; it has been marked by a steady decrease in activity on the BNB Smart Chain, which has always been a vital factor for the token's value.

According to data from BscScan, daily active transactions peaked at 31.3 million on October 8, when BNB was trading around $1,334. However, by November 4, as BNB dipped back below the $1,000 mark, daily transactions had decreased to about 21.4 million.

Daily transaction chart.

Source: BSCScan

As of now, daily transactions have fallen to around 15.1 million, indicating nearly a 50% drop in activity. This dramatic decrease shows that the engagement levels on the BNB network have substantially declined. During the same period, overall network usage also dropped from 51% to just 19%, further highlighting a significant loss of interest among users.

The Impact on BNB

This decline is most evident in the fall of on-chain trading volume. When daily transactions were at their peak on October 8, decentralized exchange (DEX) volume reached $6.31 billion. However, that number plummeted to approximately $1.29 billion at the time of writing—an astonishing drop of $5.02 billion in just a few weeks.

Such a steep decline reflects that traders are reallocating capital away from the BNB ecosystem. Despite these challenges, BNB Smart Chain remains the third-largest blockchain by market relevance.

BNB DEX trading volume.

Additionally, the activity level in stablecoins supports this trend. Typically, higher stablecoin balances indicate that investors are biding their time for new opportunities, but in this case, the stablecoin supply on BNB Chain has been decreasing alongside prices. This implies that investors are actively withdrawing assets from the ecosystem in favor of other chains. As of now, BNB’s stablecoin supply stands at $13.27 billion, down roughly $98 million from its peak on November 18.

BNB at a Pivotal Point

Currently, BNB is trading near a descending diagonal resistance line, which has consistently pushed prices lower in previous attempts. If the price doesn’t break above this resistance soon, it may experience further declines. Conversely, if BNB can decisively break through this trendline, it would indicate renewed buying strength and potentially pave the way for a recovery from the recent lows.

At present, buying pressure is weak, and based on current trends, a breakout does not appear to be forthcoming.

BNB price chart.