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Binance Burns $971M BNB in 28th Quarterly Token Burn

Binance's BNB Chain completes its 28th quarterly burn, destroying 1,643,698.8 BNB worth $971 million. Despite the burn, BNB's price remains subdued, though trading volume increased by 28%, highlighting potential future price movements.

1 min 48 secJuly 22, 2024
Binance Burns $971M BNB in 28th Quarterly Token Burn

Binance's BNB Chain has completed its 28th quarterly token burn destroying 1,643698.8 BNB tokens valued at approximately $971 million. This event coincides with the BNB ecosystem's seventh anniversary. But what does this signify for BNB holders and the broader crypto market?

 

Token burns, including BNB's auto-burn mechanism. They aim to reduce the total supply of tokens. Potentially increasing their value over time. Despite this significant burn, BNB's price remains below $600. Will this strategy eventually drive up the token's value?

 

 

The BNB auto-burn mechanism intends to eliminate 100 million BNB tokens, half of its total supply. This latest burn is part of a program that has been ongoing since October 2017. It occurred on the Binance Smart Chain (BSC). It happened amid the ongoing BNB Chain Fusion.

 

The previous burn in April saw 1944,452.51 BNB destroyed briefly boosting BNB's price by 5%.

In addition to the auto-burn, the BNB ecosystem employs a real-time burn mechanism. This was introduced with the BEP95 update. It is based on gas fees. Since its inception, nearly 234,000 BNB have been burned under this system.

 

Despite muted price reaction BNB trading volume surged by 28% following the burn. This indicates heightened interest in tokens. Burning tokens increases scarcity. This could potentially drive up value in the long term.

 

So, what’s next for BNB? The price remains below the psychological $600 level. Market indicators suggest potential upward movement. The Relative Strength Index (RSI) is above the mean threshold of 50. The Moving Average Convergence Divergence (MACD) is in positive territory indicating buying pressure outweighs seller momentum. However, the RSI is trending downward. This suggests momentum might be waning.

 

 

In conclusion, the immediate price impact of the latest BNB burn is muted and the long-term effects on token value remain uncertain. Crypto experts will be watching closely. Will these token burns eventually lead to a significant price increase?

 

What do you think Will BNB's value rise as the supply decreases, or will market conditions keep it subdued?

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