- BNB Chain introduces restaking, allowing holders to stake already staked BNB for additional rewards.
- Despite a current downward trend, restaking could potentially boost BNB Chain’s total value locked (TVL).
The BNB Chain is gearing up to introduce a restaking feature, a development that could influence the altcoin’s market position significantly. This arrives as Binance Coin [BNB], the native cryptocurrency of the BNB Chain, seeks new avenues to reclaim and enhance its value in the mid to long-term trading ranges.
— BNB Chain (@BNBCHAIN) September 11, 2024
Introduction of BNB Restaking The recent announcement from BNB Chain introduces the concept of BNB restaking, which allows holders who have already staked their BNB in DeFi protocols to engage in secondary staking efforts for additional rewards.
This innovative approach could boost the total value locked (TVL) on the network, which has seen a downtrend since March, from a high of $5.8 billion to a current TVL of $4.215 billion.
Potential Impact on TVL and BNB Demand The introduction of restaking could potentially revitalize interest in BNB staking, potentially leading to an increased TVL in the coming months. This strategy is not only aimed at enhancing liquidity but also at bolstering the demand for BNB.
Increased staking activity might encourage broader accumulation of BNB, possibly aiding its price recovery and providing the much-needed bullish momentum.
Network Performance and Transaction Count Despite the previous declines, there has been a noteworthy uptick in network transactions since August, signaling a recovery in organic on-chain demand.
From hitting a low of 2.59 million transactions in mid-August, the daily transaction count has risen above 3 million. This resurgence in activity is crucial as it reflects growing user engagement and could be further amplified by the newly introduced restaking options.
BNB is trading at around $537, experiencing a slowdown after a brief bullish momentum. This price movement occurs amidst an atmosphere of cautious optimism, as the market watches to see if BNB can sustain its momentum above critical technical levels.
The effectiveness of the restaking feature in catalyzing both the TVL and price of BNB will largely depend on broader market conditions and investor sentiment in the coming months.
