Will Binance see recovery thanks to this announcement? Details inside…

  • The Binance launchpad Arkham Intelligence’s new token airdrop may attract more users to the exchange.
  • Volume on the exchange continues to decline. Overall sentiment remains negative.

Binance [BNB] encountered challenges in the U.S. as a result of legal actions initiated by the SEC. Consequently, numerous users of the Binance platform have opted to withdraw their funds from the exchange, seeking alternative platforms for their trading needs.

Realistic or not, here’s BNB’s market cap in BTC’s terms

However, Binance’s new announcement may improve sentiment towards Binance. Binance recently announced that it will be launching the ARKM token sale on Binance Launchpad.

Will hype around a new airdrop be enough?

The ARKM token is a native token for the Arkham Intelligence protocol, which is a tool that can be used for crypto analytics. Arkham recently launched the On-Chain Intelligence Exchange, a platform that facilitates the anonymous buying and selling of information regarding the owner of any blockchain wallet address.

The hype around the ARKM token and the new update may attract new users to both the protocol and the Binance exchange. The launch of the token may also aid in improving the sentiment around the Binance protocol.

At press time, the weighted sentiment around the Binance protocol was negative. This indicated that the negative comments outweighed the positive ones for Binance on the social front.

Binance USD on Ethereum BUSD 15.13.40 11 Jul 2023

Source: Santiment

Additionally, the number of social mentions of Binance also declined. According to Lunar Crush’s data, the number of mentions for Binance fell by 10.7% over the last week.

Due to the declining sentiment, the overall trading volume on Binance fell. According to coingecko’s data, the daily volume on Binance fell from $11.14 billion to $7.44 billion over the last few days.

Screenshot 2023 07 11 at 3.25.52 PM

Source: Coingecko

The Binance team could however attract users through new developments and updates on the app. However, the declining number of core developers and code commits being made on the app suggest that it may take some time for the protocol to launch something new.

Screenshot 2023 07 11 at 3.56.37 PM

Source: token terminal

State of the token

Upon analyzing the state of the BNB token it was seen that, at press time, the price of BNB stood at $248.13. The velocity of the token had declined materially over the last week. This indicated that the frequency with which the BNB token was being traded had fallen.

Read BNB’s Price Prediction 2023-2024

The volatility of the BNB token also fell during this period, which could attract risk-averse investors going forward.

BNB BNB 15.50.34 11 Jul 2023

Source: Santiment

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