Binance, the leading cryptocurrency exchange, has recently completed its 27th quarterly token burn, a significant milestone in its efforts to reduce the total supply of its native token, BNB. The token burn, a process of permanently removing tokens from circulation, is a crucial part of Binance's strategy to maintain the scarcity and value of the BNB token.
The latest token burn saw the removal of 2,141,487.27 BNB tokens from circulation, equivalent to approximately $636 million in USD. This burn was executed through the BNB Chain's Auto-Burn mechanism, an independently auditable and objective process that adjusts the amount of BNB to be burned based on the token's price and the number of blocks generated on the BNB Smart Chain (BSC) during the quarter.
The ultimate goal of this process is to gradually decrease the total supply of BNB tokens until it reaches 100 million. Currently, the total supply stands at 149,532,856 BNB tokens, indicating that Binance is halfway through its goal of removing 100 million tokens from circulation.
Impact of the BNB Burn on Binance Price
The BNB coin price has displayed a neutral trend, trading in a closed range between $278 and $345.5 until mid-February. However, as the volatility in the market grew, this altcoin jumped approximately 110%, before facing rejection at $635. Since then, the price has been trading in a consolidated range between $506.5 and $635.
Positively, the Binance token has added 11.43% within the past seven days and 10.12% over the past 30 days. Moreover, its Year-to-Date (YTD) stands at 94.58%, indicating a strong bullish price action for the Binance coin price during the upcoming months.
The technical indicator, MACD, shows a rising green histogram, indicating increased buying pressure in the crypto market. Furthermore, the averages display a bullish convergence, suggesting a positive outlook for the BNB price in the coming time.
Will Binance Coin Price Rise Back Up?
If the bulls continue gaining momentum, the BNB coin price will test its resistance level of $635 by the upcoming weekend. Moreover, if the market holds the price at that level, the Binance token will attempt to test its previous all-time high (ATH) of $690.9.
Conversely, if a trend reversal occurs, the BNB token will lose momentum and fall to test its support level of $569.5. Further, if the bears continue to dominate the market, the Binance token will plunge and prepare to test its lower support level of $506.5 during the upcoming weeks.
In conclusion, Binance's commitment to reducing the total supply of BNB tokens through its quarterly token burn process is a significant factor in maintaining the scarcity and value of the token. As the company continues to execute these burns, the impact on the BNB price remains a closely watched metric by the crypto community.
#BinanceLaunchpool #BullorBear #HotTrens #TrendingPredictions
