Derivative investors have shown increased interest in the BNB token as derivatives volume spikes for Binance’s cryptocurrency, with a balanced rate between long and short positions, despite DeFi investors’ outflow trend from the BNB Chain decentralized finance ecosystem in 2023.
Interestingly, BNB derivatives are trading with a $671.93 million 24-hour volume at the time of publication, for a surge of 123% from yesterday, according to data retrieved by Finbold from CoinGlass. Binance’s token also saw an increase of 8.46% in the Open Interest (OI) — the total number of outstanding derivative contracts.
Additionally, this recent growing interest, close to $630,000 was liquidated from crypto traders‘ positions betting on BNB’s price action.
Nevertheless, neither the traders nor the token have decided the next trend for BNB, as its price is showing a neutral behavior with shy losses of 0.34% by press time, and the long-short ratio registers an equally balanced perception at 0.99 points.
BNB exchanged volume follows derivatives volume
Notably, BNB’s total volume exchanged in the spot market is slightly following the increased interest observed in the derivatives market. CoinMarketCap’s index marks a 24-hour exchanged volume close to $509 million for BNB, with a daily variation close to 70% upwards.
Usually, increased volume means a trending validation for a given asset, which indicates that speculators are comfortable operating the current trend.
In BNB’s case, both volume surges validate lateralization, suggesting Binance’s native token could continue showing low volatility short term. However, further developments, either negative or positive, could suddenly change this trend, as well as some major volatility for all cryptocurrencies.
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