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Traders have been adding to positions in the native token of BNB Chain, which has seen open interest climb as much as 35%.
According to CoinGlass data, BNB's open interest is up 35% in the last 24 hours to $1.43 billion. The open interest surge outperforms that of major cryptocurrencies Dogecoin (DOGE) and XRP in terms of percentage increase. The latter were unchanged in their open interest over the last 24 hours. Dogecoin's open interest was down 0.01% while XRP fell 0.56% in the same metric.
The surge in open interest for BNB also coincides with a spike in derivatives market activity even as other major cryptocurrencies saw their trading volumes fall. BNB's volume in the derivatives market rose 270% in the last 24 hours to $5.18 billion, according to CoinGlass data.
XRP's volume fell 55% in the derivatives market to $1.39 billion, while Dogecoin saw a similar drop, down 52.39% in the last 24 hours to $720 million.
BNB gains attention
The increase in open interest for BNB signals an increase in inflow of capital into BNB-linked futures and perpetual contracts. This coincides with a BNB price increase in the last 24 hours, with the cryptocurrency outperforming the top 5 in daily and weekly gains.
At the time of writing, BNB was up 7.35% in the last 24 hours to $722 and up 10% weekly, even as major cryptocurrencies Bitcoin and Ethereum recorded weekly losses of nearly 5%.
The increase in open interest suggests that traders are positioning themselves for potential volatility. This expectation follows as BNB secured its first US exchange-traded fund (ETF) offering spot exposure in the US, launched by VanEck and trading under the ticker VBNB on Nasdaq. The next trending move is expected to start on a close above $687 or below $570. Until then, BNB might continue to trade in a range.
A close above $687 might signal the start of a new uptrend toward $730 and then $790.
Dan Burgin
