BNB, a native token of the Binance exchange, has seen a massive drop in its market shares due to global regulatory pressure on the trading platform.
Binance ran into regulatory trouble on June 5, when the US Securities and Exchange Commission (SEC) filed a lawsuit against the exchange based on allegations of fraud and offering unregistered securities, among other things, and this has affected the performance of the cryptocurrency.
BNB loses $10 billion in market cap
Following the news of the SEC’s charges against Binance, its own cryptocurrency BNB, whose market value is tied to the trading platform’s broader performance, saw its market cap fall by 8%, losing more than $4 billion in a single day.
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Aside from the struggles on US soil, Binance’s business has also faced some regulatory setbacks in parts of Europe in recent weeks.
The exchange is on June 17 announced the closure from its market in the Netherlands due to the inability to obtain a virtual asset service provider (VASP) from the Dutch authorities.
Further French authorities launched an investigation to Binance France on the basis of alleged money laundering and illegal customer solicitation.
Belgium became the latest country to join this growing list of disgruntled nations after the Financial Services and Markets Authority (FSMA) issued an order instruct Binance to cease operations in the country immediately.
In the past 30 days, all of these events resulted in BNB losing more than $12 billion in market shares, representing a staggering 25% drop in the token’s market cap.
Moreover, during this period, the Binance Coin has also seen its market price fall from $316.56 to just $223.88.
While BNB has experienced some resurgence in the market’s overall uptrend that took place last week, it has proved insignificant in turning the token’s fortunes around.
According to data from CoinMarketCap, the coin is trading hands at $234.11, down 2.25% in the past 24 hours. Meanwhile, the token market cap now stands at $36 billion, maintaining its position as the fourth largest cryptocurrency in the market.
BNB Market Cap Valued At $36.17 Billion On The 1-Minute Chart | Source: BNB Chart On Tradingview.com
What now for the cryptocurrency?
After BNB’s recent negative price moves coupled with its stature in the crypto space, there is bound to be high levels of speculation about the token’s next moves.
According to price prediction site Coincodexinvestor sentiment around BNB remains bearish, reflecting current concerns over the fate of the token amid Binance’s growing regulatory woes.
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Coincodex predicts that for now, BNB will maintain its bearish trend to trade at $226.88 in 5 days, representing a gain of 2.43% from the current market price.
However, Coincodex also supports BNB to begin a market recovery once they forecast the token to trade at $274.08 in the next 30 days.
That said, forecasts are not considered investment advice and investors are urged to do their due diligence before entering the market.
Featured image: Forbes chart from Tradingview.com.