Binance Chain has completed its 31st quarterly BNB token burn, removing $916 million worth of coins permanently from circulation. This move has sparked speculations of a possible BNB price rally, with analysts and traders remaining enthusiastic.
Notably, this token burn brings BNB Chain’s vision of reducing BNB token’s total supply to 100 million. Currently, BNB token’s supply is 140.89 million.
Binance Chain Burns $916M BNB Tokens
In the latest development, Binance Chain has burnt about 1.5 million BNB tokens, worth about $916,000,000. Despite this consistent trend, the protocol still has 40,886,572.43 BNB tokens left to be burned.
Binance founder and former CEO Changpeng Zhao shared an X post today, revealing the platform’s significant token burn.
Revealing the Burning Mechanism
Interestingly, the BNB token burn is maintained via an automatic burn mechanism which BNB Chain has strategically set to reduce the coin supply. Each quarter, the system, introduced through the BEP95 proposal, calculates the number of tokens needed to be eliminated. This process is done based on the metrics such as BNB price and the blocks produced on the Binance Smart Chain (BSC) during the term.
How the Token Burn Impact BNB Price?
In contrast to investors’ optimistic beliefs driven by the general positive trend that typically follows a token burn, the BNB price has yet to react.
According to CoinGape’s BNB Price Prediction, the BNB token was set to reach of maximum high of $577.86. However, the token has surged past the trend and is now trading at $582.58, down 1.10% in a day. Despite a 5.82% increase over the past seven days, BNB price has seen a notable decline of 7.2% in a month. Defying the bearish trend in its price, BNB has seen a positive sentiment among investors, which is evident in the 24-hour trading volume. The trading volume has increased by a $1.39 billion.
Technical Indicators Suggest Bullish Trend Ahead
According to bullish predictions, BNB price is expected to halt further declines. The token aims to reclaim the $600 resistance level, seeking support above the 50-day Exponential Moving Average (EMA).
Despite a bearish momentum building around BNB, the MACD indicator remains resilient. A breakout above the descending trendline resistance could significantly increase the likelihood of BNB testing the next key resistance area around $635.
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