Chainlink, Binance Coin Weekend Rally Stalls On Monday
While BNB jumped by around 20% in a matter of three hours yesterday, LINK increased by 35% during the weekend. At pixel time, (11:28 UTC), LINK corrected some of its gains in a day and is now up by 0.7%, to USD 12.06. The price is still down by 27% in a week. At the same time, BNB dropped by 4% in a day and 7% in a week, trading at USD 21.6.
The gains for LINK today came without any major news announcements from the team. Instead, it seems the rally was largely driven by technicals, with for example the popular Relative Strength Index (RSI) approaching oversold levels, while the price also briefly traded below the 100-day Exponential Moving Average (EMA) line before finding support and reversing higher.
For Binance’s own exchange token, however, the latest rally came after an announcement from the company yesterday that BNB, BUSD, and other tokens can now be staked for rewards on Binance Launchpool. The move means that BNB holders can tap into some of the frenzy surrounding yield farming on decentralized protocols, while also adding more utility value to the token.
The announcement from Binance sent BNB soaring higher yesterday to a high of USD 23.5. However, the rally later faded, with BNB correcting down.
The increasing utility of BNB was also pointed out by Binance CEO Changpeng Zhao.
As stressed by Binance, however, Launchpool is not to be confused with the existing Launchpad product, which is the exchange’s platform for facilitating new token sales via IEOs (initial exchange offerings).