BNB tumbles in key parameters as Binance faces regulatory heat
Binance’s native token Binance Coin [BNB] plunged nearly 6% in the past 24 hours, after the U.S. Commodity Futures Trading Commission (CFTC) alleged that crypto behemoth and founder Changpeng Zhao (CZ) violated compliance rules to expand its business.
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According to data from CoinMarketCap, more than $3 billion of BNB’s market cap was wiped out on 27 March, as the news sent ripples across the crypto spectrum.
BNB’s long-term holders, who were betting on high prices, were caught off-guard and forced to liquidate positions worth $1 million per data from Coinglass.
Source: Coinglass
The lawsuit filed by the CFTC accused Binance of operating an illegal crypto derivatives exchange and, in turn, using unfair practices to evade regulatory scrutiny of U.S.-based customers.
Since the development, tokens worth $1.19 billion were flown out of the exchange, as growing FUD prompted users to keep funds in self-custody rather than centralized exchanges (CEXs). Over the past 24-hour period, the net inflow was negative.
Source: DeFiLlama
Things were not looking too good on the DeFi front as well. The trading volume of decentralized exchanges (DEXs) on the BNB Chain dropped significantly.
Since hitting a four-month high on 12 March, the activity has contracted by as much as 70% at press time, data from DeFiLlama showed. The total weekly volume also fell by nearly 25%.
Source: DeFiLlama
As per Santiment, the daily transaction volume in loss jumped over 600% in the last week. However, whale transactions rose to their highest value since 22 March after the lawsuit, implying that big addresses could be buying the dip.
The 30-day MVRV Ratio went downhill since mid-March as the overall
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