Binance Coin Slides 8% as Market Pressure Mounts and $BNB Tests Key Support Zone

$BNB Binance

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Last updated: 

April 6, 2025

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Binance Coin ($BNB) has struggled to defy the ongoing crypto market downturn, recording an 8% decline over the past week and ranking among the top five worst-performing cryptocurrencies this month.

However, over the past 24 hours, $BNB has shown relative strength, outperforming major assets like Bitcoin and Ethereum on a short-term basis.

BNB Chain Holds Over 6% of Defi Tvl — but for How Long?

Launched in 2020 as Binance Smart Chain, BNB Chain offered a fast, low-cost, Ethereum-compatible alternative during Ethereum’s scalability bottlenecks and high gas fees.

Despite that, Ethereum continues to dominate in terms of decentralization and total value locked (TVL).

BNB Chain, while trailing in comparison, still holds its position as the third-largest blockchain with over $5.2 billion in TVL, representing more than 6% of total assets locked across all DeFi platforms.

BNB Chain’s validator structure has faced scrutiny due to its centralized design, with Binance playing a central operational and financial role.

This dependency raises concerns if Binance faces legal, operational, or financial setbacks.

BNB Chain Adoption Grows With Stablecoins and ETF Filing

One of the key pillars of BNB Chain’s ecosystem is PancakeSwap, which continues to drive substantial DEX activity.

PancakeSwap’s dominance helped BNB Chain lead all blockchains in DEX volume for eight days during a memecoin surge in March, according to DeFiLlama.

This frenzy led to substantial trading activity in popular tokens like $BROCCOLI and $MUBARAK.

That run was partly fueled by BNB Chain’s 2025 tech roadmap release, which reaffirmed its support for the memecoin ecosystem.

Beyond DEX activity, BNB Chain has also led active user growth.

Last month, it registered the highest number of active addresses among EVM-compatible networks and was second only to Solana across all chains.

Additionally, stablecoin adoption has grown on the BNB Chain.

On March 24, World Liberty Financial, a DeFi platform with ties to the Trump family, launched its USD1 stablecoin on the chain.

Since January 2024, more than $2.5 billion in stablecoins has flowed into BNB Chain, reinforcing its growing role in DeFi.

In a further sign of institutional interest, asset management firm VanEck filed for a spot Binance Coin ($BNB) exchange-traded fund (ETF) in Delaware on March 31.

If approved, this would mark the first U.S. attempt to list a spot ETF tied to $BNB.

Binance Coin Technical Outlook: Bearish Signs Emerge

$BNB recently broke down below a key support level of around $560, signaling increased vulnerability in the near term.

Moreover, a historically strong demand zone lies between $500 and $520.

This range has acted as a floor for past price rebounds.

However, a decisive daily close below the $500 mark would be considered a bearish confirmation, potentially opening the door to further downside toward the mid-$400s, a level not revisited since early 2024.

The Relative Strength Index (RSI) sits at 32.14, indicating that $BNB is nearing oversold territory.

This may hint at a short-term bounce, but RSI can stay low during downtrends, so caution is warranted.