Million

Venus

<a href="https://en.coin-turk.com/" target="_blank" rel="noopener" data-wpel-link="internal">Crypto</a> data provider Coinglass&#8217;s tracking data indicates a rapid increase in the open interest &#8211; or in other words, the number of unsettled and active futures contracts &#8211; in Binance&#8217;s BNB. 
<h2 style="text-align: justify;" id="open-interest-in-bnb-rises-to-1-57-million">Open Interest in BNB Rises to 1.57 Million</h2>
As of today, the total open interest in BNB, one of the top altcoins, has surged to 1.57 million BNB (equivalent to $360 million), reaching the highest level observed since January 1. This figure has risen by more than 8% within the last 24 hours and approximately 27% over the past week. 
Current data indicates that BNB&#8217;s price dropped to $221 in the early hours of today, hitting the lowest level since December 12, 2022. Since the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against giant crypto exchange <a href="https://en.coin-turk.com/binance-continues-delisting-19-trading-pairs-to-be-removed/" target="_blank" rel="noopener" data-wpel-link="internal">Binance</a> on June 5, BNB&#8217;s price has fallen over 25%. 
<img decoding="async" loading="lazy" class="aligncenter wp-image-83973 size-full" src="https://en.coin-turk.com/wp-content/uploads/2023/06/bnb-1.png" alt="" width="665" height="374" srcset="https://en.coin-turk.com/wp-content/uploads/2023/06/bnb-1.png 665w, https://en.coin-turk.com/wp-content/uploads/2023/06/bnb-1-300x170.png 300w, https://en.coin-turk.com/wp-content/uploads/2023/06/bnb-1-108x62.png 108w, https://en.coin-turk.com/wp-content/uploads/2023/06/bnb-1-255x144.png 255w" sizes="(max-width: 665px) 100vw, 665px" />
An increase in open positions, alongside a price decline, often signifies an influx of short positions or investors acting on the anticipation of a further price drop, confirming the downward price trend. 
The negative funding rate in the perpetual futures market also indicates BNB&#8217;s downward trend. The funding rate signifies the cost of maintaining a long or short position in the market. A negative rate demonstrates that those betting on a price drop (short position holders) are willing to pay those anticipating a price rise (long position holders) to keep their negative bets open. 
<h2 style="text-align: justify;" id="potential-chain-liquidation-threat-in-bnb-due-to-venus-protocol">Potential Chain Liquidation Threat in BNB due to Venus Protocol</h2>
Crypto analyst and trader Reetika Malik stated, &#8220;BNB is currently heavily shorted because there&#8217;s a risk of chain liquidation around $220 in the Venus Protocol, and if this happens, the decline could deepen further.&#8221; Venus Protocol is an algorithm-based money market system on the BNB Chain. 
On the other hand, in an attempt to alleviate market concerns, Venus Protocol recently tweeted that if BNB&#8217;s price reaches the liquidation threshold, the BNB Chain core team will take over the BNB position on Venus. 
The post <a rel="nofollow" href="https://en.coin-turk.com/rapid-increase-in-open-interest-for-binances-bnb-amid-price-drop-crypto-analyst-warns-of-chain-liquidation-risk/" data-wpel-link="internal">Rapid Increase in Open Interest for Binance&#8217;s BNB Amid Price Drop: Crypto Analyst Warns of Chain Liquidation Risk </a> appeared first on <a rel="nofollow" href="https://en.coin-turk.com" data-wpel-link="internal">COINTURK NEWS</a>.

Rapid Increase in Open Interest for Binance’s BNB Amid Price Drop: Crypto Analyst Warns of Chain Liquidation Risk

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🗒 Daily Newsletter | Monday, June 12, 2023

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