Binance lists new token; enough to attract new users?
TL;DR Binance recently announced the listing of the much anticipated PENDLE token. This could help improve sentiment and activity around Binance, while the native BNB token rallied. However, BUSD’s market cap declined significantly in the past month.
Sentiment around BNB improved as the price rallied, however, BUSD marketcap continued to decline.
The recent lawsuit filed by the SEC against Binance [BNB] caused massive problems for the exchange. Sentiment and usage declined, while both BNB and Binance USD [BUSD] were affected negatively.
Realistic or not, here’s BNB’s market cap in BTC’s terms
However, despite the ongoing legal battles that Binance has been facing, new developments keep coming into the picture. Recently, Binance announced that it will list PENDLE in the Innovation Zone and will open trading for these spot trading pairs soon.
What is PENDLE?
PENDLE, which has garnered significant popularity among users in the crypto space, has become a token of interest in the last few months.
For the uninitiated, PENDLE is the official token of the Pendle Finance protocol. Pendle Finance offers a unique approach to trading yield-bearing crypto assets by splitting them into principal and yield tokens.
Pendle’s solution, inspired by bonds, has led to significant growth in trading volume and total value locked (TVL) on Ethereum [ETH] and Arbitrum [ARB]. Under their ve-tokenomics model, vePENDLE holders earn 80% of the protocol’s generated revenue, while liquidity providers receive the remaining 20%.
This makes the protocol more attractive to users.
After Binance announced the listing of PENDLE, two PENDLE institutional addresses transferred 4.6 million PENDLE to Binance, which may be sold after opening trading, according to EmberCN.
2021-2022 归属解锁 271 万 PENDLE，然后转入 Mexc；
2022/11 从 Gate 提出 241 万 PENDLE；
半小时前将这 241 万 PENDLE($2.83M) 转入币安。 推文由 @LionDEX_CN 赞助 pic.twitter.com/J9fwGC0Q2u — 余烬 (@EmberCN) July 3, 2023
The announcement of PENDLE on Binance could bring new users and increase activity on Binance and improve sentiment surrounding the exchange and its protocol.
State of Binance
Over the last 24 hours, the number of active addresses on the Binance network has increased by 5.8%. Due to this spike in activity, the revenue generated by the protocol has grown by 14.1% as well.
Is your portfolio green? Check out the BNB Profit Calculator
Coming to Binance’s native token BNB, its price increased significantly over the last week, owing to a decline in negative sentiment. Even though BNB could recover, the same couldn’t be said about Binance’s stablecoin, BUSD.
The marketcap of BUSD continued to decline in the past month. Coupled with the declining market cap, the velocity of the stablecoin also fell, suggesting low activity occurring with BUSD.