trade now
Avalanche (AVAX)Binance Coin (BNB)Exchanges & BrokersNewsPrice AnalysisSolana (SOL)

Binance Loans List SOL And AVAX As Collateral Assets

Leading global crypto exchange, Binance, has announced that its loans program now has SOL and AVAX tokens as additional collateral assets. Traders often use Binance loans to borrow digital asset tokens for trade or stake purposes. Thus, enabling them to increase their potential earnings from their trades or stakes.

Why SOL was listed

One major reason Binance added Solana’s native token to its list of collateral assets would be the significant growth of the network last year, including a sharp rise in its market cap and the ever-increasing number of projects being built on the Solana blockchain. As of this writing, there are nearly 450 projects (including protocols and dapps) running on the Solana blockchain.

However, Solana’s growth has also come with some challenges. Four months ago, the network went down following nearly 500K requests in queued transactions. Also, the rising interest in the network has made it a subject of various attacks. It has experienced DDoS attacks twice in the last three months. 

📰  Extreme Volatility In Cryptocurrency Market Did Not Affect Celsius Network, Say Executives

Thus, making the network unable to boast of completing 50k TPS again. This year, Solana’s project serum has announced a $100m support for DeFi projects intended to be built on the serum network. The serum is Solana’s non-custodial dex network that supports most of Solana’s dapps.

Why AVAX Token Was Listed

The AVAX token is the second newly listed token on the Binance loans program. There are various reasons Binance loans is listing the AVAX token. One reason is the blockchain’s time-to-finality which industry statistics show is the best. Also, stats prove that avalanche’s smart contracts platform is the best in the industry. 

Remarkably, the blockchain has the highest validators out of all pos networks. Part of the Binance announcement states that each user’s level will determine the tiered interest rates they can access when borrowing the AVAX and SOL tokens. 

While high-tiered users can access lower interest rates, normal rates will apply to other tiered users but can vary depending on the loan period as indicated on the term sheet. One important difference traders must note when borrowing SOL and AVAX is that only SOL is enabled for staking.

📰  Dogecoin (DOGE): What Flipping Mid-Range to Demand Territory Could Detect

BNB Price Action

Even though BNB currently trades at $455, it has fluctuated around the $444 range in the last 48 hours following a dip two days ago. The technical indicators for BNB on the 4-hour timeframe indicate bullishness. BNB has crossed over 20-day EMA, while the RSI of 39 is gradually increasing. Both of which confirm the bullish bias.

Unless there is a general market downturn, the bulls will remain in control to keep pushing up the BNB price. The upper and lower limit of the Bollinger band at $513 and $426 respectively corresponds to BNB’s most crucial resistance and support.

BNB/USD 4-hour timeframe. Source: TradingView

Conversely, BNB is bearish on the daily timeframe. The support and resistance bands gap keeps growing, indicating rising volatility. The BNB price is crossing underneath the 20-day EMA, while the RSI value of 32 is indicative that the digital asset is currently undervalued.

Shelly Melancon (Switzerland)

Shelly is a cryptocurrency enthusiast from Switzerland, she bought her first crypto in 2015 when it was way less popular then it is today and since 2017 she has been writing about cryptocurrency for online news portals. Shelly is the newest addition to the Tokenhell team, she writes mostly news and reviews related articles , stay tuned to her posts to stay up to date with the crypto world.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button