- The BNB community voted to deploy Euler on the chain.
- Investors’ portfolio was doing pretty much better than last year’s hawkish state.
On 8 February, Binance CEO Changpeng Zhao (CZ) shared a snapshot showing details of the Binance Coin [BNB] Chain’s proposed deployment of Euler. According to the shared link, the BNB Chain foundation had agreed to deploy Euler on the chain.
Euler proposal: RFC: Deploy Euler to BNB Chain https://t.co/eAsZWASXBg
— CZ 🔶 Binance (@cz_binance) February 8, 2023
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Results from the voting proceedings showed that 83.05% of the community voted for the deployment. 9.58% asked to make no changes, while a paltry 7.37% abstained from the process.
The goal to improve design
On 18 January, the BNB Chain Foundation, led by a pseudonymous AdamBNB, made the deployment proposition.
Details from the proposal showed that the team believed that Euler could contribute to the volume and liquidity of BNB and Binance USD [BUSD]. This, in turn, would help the chain with MEV-resistant liquidations and improved financial design. The proposal pointed mentioned that,
“BNB would also add an extra degree of geographic diversification of both users and capital to its existing offering. Lastly, Euler could use both BNB and BUSD, two of the most demanded assets with the highest volume and liquidity in circulation.”
Following the approval, the BNB on-chain development activity maintained its hike. According to Santiment, the metric, which was down at 0.0049 at the start of February 2023, had risen to 0.05 at the time of writing.
The development activity describes a project’s dedication to ensuring seamless use of its network. So, the spike in the metric means that BNB users might have fewer challenges transacting on the network.
In addition, the image above pointed to the state of the BNB velocity. The velocity measures the average number of times a coin changes the wallet. At the time of writing, BNB Chain’s velocity was 0.269. At such a low value, it implied that there was a dip in activity among most BNB addresses.
On BNB investors’ portfolio
Meanwhile, the hike in market prices recently seems to have helped the portfolio of several BNB holders. Recall that the long-term holders of the fourth-ranked cryptocurrency experienced a sharp dip in holdings because of the hawkish market condition of 2022.
But now the 30-day Market Value to Realized Value (MVRV) ratio has increased to 7.682%. The surge means that most BNB investors have made substantial profits over the last month.
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While the MVRV ratio evaluates periods of investors’ unrealized profits and loss, the z-score gauges if an asset is at a fair value.
Source: Santiment
At press time, the MVRV z-score had risen to 1.114. A circumstance like this might tend BNB towards being overvalued. Hence, those anticipating a short-term bullish move may need to lower their expectations.
