Is the BNB coin price on the verge of a robust recovery? This is the question analysts have been pondering, especially after its performance in the latter half of the week.
Binance coin market sentiment registered a noteworthy improvement on Thursday, which was not a fluke. Instead, it highlighted a positive market reaction after reports that U.S. President Donald Trump gave former Binance chief CZ a full pardon.
CZ was previously accused of enabling money laundering in 2023 and pleaded guilty to those charges. This occurred around the same time the U.S. government was cracking down on centralized exchanges.
Some analysts believe that Trump's pardon of CZ signifies a shift to a pro-crypto stance, perhaps one that could signal less pressure on centralized exchanges looking to push their operations into the U.S.
However, not everyone was pleased with CZ being pardoned. U.S. congresswoman Maxine Waters claimed that President Trump favored CZ because he lobbied for the Trump family and World Liberty Financial.
Meanwhile, CZ responded to being pardoned by expressing his commitment to making America the crypto capital of the world.
BNB Price Rallies by Over 5% After News of CZ’s Pardon
The excitement surrounding CZ’s pardon trickled down to BNB price. The cryptocurrency bottomed out at around $1,052 earlier this week but has since recovered above $1,100. It was trading at $1,128 at press time.
Further investigation into BNB coin demand in the last 48 hours revealed that whales were not as enthusiastic about the upside, judging by their weak demand. The whale cohort contributed about $5.7 million worth of sell pressure in the spot segment during the same period and less than $1 million in the derivatives segment.
The rest of the crypto market contributed about $40 million worth of net inflows into BNB on Thursday. More than $6 million worth of net spot outflows were observed in the last 24 hours. This may indicate that the mid-week demand wave risked further weakness.
BNB Network Shows Signs of Rising Network Activity
CZ’s pardon by President Trump may have sparked some short-lived excitement, but it was likely not the only reason for BNB’s recent upside.
The BNB chain recently demonstrated a surge in DeFi activity in the last 7 days. DEX volume on the BNB chain dropped as low as $2.73 billion on October 18. This was the lowest level it had achieved so far this month. However, DEX volume has been on a steady recovery since then.
For context, BNB chain DEX volume surged to $3.76 billion in the last 24 hours. This marked the highest level observed in the last 7 days.
The recovering DEX volume confirmed that network activity has been recovering after previously experiencing a decline. Tariff fears and heavy liquidation triggered the network activity dip.
The recent price recovery this week and rising DEX volume were also accompanied by a healthy spike in network activity. For example, the BNB chain had about 2.52 million active addresses on October 19, but that figure was up to 3.09 million active addresses as of October 23.
Similarly, transactions on the BNB chain surged from 18.84 million TXs to 22.63 million TXs within the last 7 days. These data points confirmed that the BNB chain was indeed experiencing some network activity recovery. This may underscore potential demand ahead for the Binance coin.