The cryptocurrency BNB recently fell 2.6% to 883 dollars, after failing to sustain its previous value. According to reports from CD Analytics and Francisco Rodrigues, the drop in the BNB price below 900 dollars coincides with an internal crisis at CEA Industries. This treasury firm is facing a leadership dispute that has undermined institutional investor confidence currently.
The digital asset market is experiencing a risk aversion phase due to external and internal macroeconomic factors. The drop in trading volume reached 25% compared to the average recorded during the last week of operations. Likewise, the sentiment of caution prevails among retail traders who are waiting for clear signs of recovery in the short term. Furthermore, external factors such as the US jobs report have pressured higher-risk assets downwards.
On the other hand, the technological upgrade on the opBNB network has not managed to drive an immediate price recovery. Although block times were cut in half, the lack of buying momentum has been evident in the financial performance charts. In this way, technical improvements do not guarantee a sustained rise if the global macroeconomic context continues to show signs of weakness. Therefore, BNB moves in sync with Bitcoin and other leading assets that are also facing significant pullbacks.
The internal conflict in the BNB treasury that shakes the stability of the ecosystem
However, the most disruptive factor is the corporate “civil war” within the public firm CEA Industries (BNC). The largest shareholder, YZi Labs, has openly challenged the board over alleged negative changes in fund management. This corporate instability creates doubts about the future strategy for storing and using assets within institutional treasuries. Therefore, the clash between shareholders and directors of CEA adds an extra layer of uncertainty over the digital asset.
On the other hand, the market in general shows signs of fatigue after failed breakout attempts at higher prices. Bitcoin dropped from 90,000 dollars, while decentralized finance cryptocurrencies led the losses in today’s session. Net outflows from Bitcoin ETFs totaled more than 700 million dollars in just a few days. Also, the CoinDesk 20 index recorded a 4% drop showing a generalized decline in most major protocols.
Will the Fermi hard fork be able to rescue BNB’s value amidst the current crisis?
Despite the bleak outlook, many traders have their eyes on the upcoming hard fork called Fermi. This technical update seeks to optimize the performance of the BNB Smart Chain to improve the experience for end users. Technological innovation remains the main engine to maintain the network’s relevance against its direct competitors. Therefore, the success of the next network upgrade could be the necessary catalyst to reverse the negative trend.
However, technical resistance near 900 dollars remains a difficult obstacle for the bulls to overcome. Analysts suggest that the market needs greater clarity on regulations and corporate conflicts before moving up. BNB continues to lead in terms of real activity of users within its blockchain despite the price. Finally, the resolution of the tensions at CEA Industries will be decisive in projecting the long-term financial stability of this asset.
