BNB, the native token of the Binance exchange, has experienced a massive decline in its market share due to global regulatory pressure on the trading platform.
On June 5, Binance ran into regulatory trouble when the US Securities and Exchange Commission (SEC) filed a lawsuit against the exchange, accusing it of fraud and offering unregistered securities. This had an impact on the performance of the BNB cryptocurrency.
BNB loses $10 billion in market capitalization
Following the news of the SEC’s charges against Binance, the market capitalization of the native cryptocurrency BNB, whose value is tied to the broader performance of the trading platform, dropped by 8%, losing over $4 billion in a single day.
In addition to the difficulties faced in the United States, Binance has also encountered regulatory setbacks in parts of Europe in recent weeks. On June 17, the exchange announced the closure of its market in the Netherlands as it did not receive a Virtual Asset Service Provider (VASP) license from Dutch authorities.
Furthermore, French authorities launched an investigation against Binance France for alleged money laundering and illegal customer acquisition. Belgium is the latest country to join this growing list of disgruntled nations, with its Financial Services and Markets Authority (FSMA) issuing an order for Binance to immediately cease its activities in the country.
In the past 30 days, all these events have led to BNB losing market share worth over $12 billion, resulting in an astonishing 25% decline in the token’s market capitalization. Moreover, the market price of Binance Coin has fallen from $316.56 to just $223.88 during this period.
Although BNB experienced some revival in the overall market uptrend last week, it has proven to be insignificant in changing the fate of the token. According to CoinMarketCap, the coin is currently trading at $234.11, representing a 2.25% decline in the past 24 hours. Meanwhile, the token’s market capitalization stands at $36 billion, making it the fourth-largest cryptocurrency on the market.
What lies ahead for the cryptocurrency?
Given the recent negative price movements of BNB combined with its status in the crypto space, there will inevitably be a high level of speculation about the token’s next moves. According to the price prediction website Coincodex, investor sentiment towards BNB remains pessimistic, reflecting current concerns about the token’s fate amid Binance’s growing regulatory issues.
Coincodex predicts that BNB will maintain its downward trend for the time being and will be trading at $226.88 in 5 days, representing a 2.43% increase from the current market price. However, Coincodex also supports the idea that BNB will soon initiate a market recovery, forecasting that the token will be trading at $274.08 in the next 30 days.
It’s important to note that these predictions are not investment advice, and investors are encouraged to exercise due diligence before engaging in the market.
