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Here’s why Binance Chain (BNB) will face an important price test on September 30th.

BNB, the native token of Binance’s BNB chain, entered a symmetrical triangle formation on August 10 when it first faced the downtrend line at the $335 resistance. His next five weeks struggled around $280. This is the exact intersection of two opposing rising and falling patterns.

BNB Token/USD on FTX.Source: Trading View

A decision on whether the symmetrical triangle is pointing up or down is expected by Sept. 30, when the trendlines cross. Currently with a market capitalization of $45 billion, the BNB chain token has outperformed the broader altcoin market by 15% over the past three months.

The latest breakthrough in BNB chain development was announced on September 7th, after the project introduced zero-knowledge (ZK) proof-scaling privacy technology. The testnet is scheduled for November and aims to speed up finality and reduce transaction fees. Ethereum mastermind Vitalik Buterin also wants to implement a similar solution for the Ethereum network, and in late 2021 he emphasized the importance of ZK.

The BNB chain’s Ethereum-compatible network is fully functional and hosts decentralized applications (DApps) such as decentralized exchanges (DEX), games, secured loan services, social networks, yield aggregators, and NFT marketplaces.

Declining price deposits could be a red flag

Despite currently trading 60% below its all-time high, BNB remains the third-largest cryptocurrency by market capitalization rankings excluding stablecoins. Additionally, the network holds $6.6 billion worth of deposits locked in smart contracts, a term known in the industry as total locked value.

Despite a 26.5% rise in BNB price over the past three months, the network’s TVL measured in BNB tokens fell by 12.5% ​​over the same period. This data is usually important, but it depends on how other competitors have fared.

BNB Chain total value lock, BNB. Source: DefiLlama

In fact, low smart contract deposits have become the norm across the industry. For example, his TVL for Solana (SOL) decreased by 27.5% in 3 months and Avalanche (AVAX) decreased by 36%. Even Ethereum fell to 24.2 million from 34 million on July 17, a 29% reduction in ETH deposits.

In dollar terms, the BNB chain’s current TVL is $6.6 billion, an increase of 12% in the three months to September 16. This number is much better than other of his Ethereum competitors, such as Avalanche’s $2.2 billion and Solana’s $1.3 billion, according to DeFi Llama data.

The use of DApps is expanding, led by Gameta

To see if the decrease in the TVL of the BNB chain is accompanied by a decrease in users, investors should analyze decentralized application (DApp) usage metrics. Some of his DApps, such as games and collectibles, do not require large deposits, so in these cases the TVL metric is irrelevant.

Top BNB chain DApps by 30 days active addresses. Source: DappRadar

PancakeSwap, a decentralized exchange on the BNB chain, has 1.75 million active addresses and is the absolute leader in all smart contract networks. The Ethereum network, on the other hand, only holds three of his DApps with over 35,000 active addresses namely He Uniswap, OpenSea, and MetaMask Swap.

More importantly, three DApps using the BNB chain have grown by over 190%, with Gameta being the most promising, with over 900,000 active addresses. Critics of the BNB chain will struggle if another application other than PancakeSwap gains leadership across all smart contract networks.

Falsely conclude that the BNB token is ready for a fix, judging by the absolute numbers that mean the TVL of the BNB token has decreased by 12.5% ​​and the active addresses of Binance Chain’s leading DApp have decreased by 14% can do.

However, a more detailed analysis, including comparisons with competitors, suggests that a symmetrical triangle pattern crossing at $280 on Sept. 30 is likely to be a bullish trigger for BNB’s price.

The views and opinions expressed herein are solely author They do not necessarily reflect the views of Cointelegraph. All investment and trading movements involve risk. You should do your own research when making a decision.