Binance Burns $600 Million Worth of BNB Tokens
Binance has burned more than $600 million U.S. dollars worth of Binance Coin (BNB), setting the cryptocurrency up for further gains.
Over 1 Million Tokens Burned
The world’s largest cryptocurrency exchange by trading volume, Binance, has completed its fifteenth quarterly BNB burn.
A total of 1,099,888 BNB, worth nearly $600 million, have been permanently removed from circulation, leaving a remaining total supply of 169.50 million BNB. This represents the largest token burn that Binance has conducted to date.
So far, Binance has burned 15.30% of the 200 million BNB supply. About 35% of the supply will be destroyed in the coming years.
According to Binance CEO Changpeng Zhao, many factors have contributed to the price action that BNB has seen over the past few months. These include the “BUIDL” mentality that his team has adopted, the growth of DeFi, and the expansion of the token’s utility thanks to the Binance Smart Chain (BSC).
“BNB’s use cases have expanded to hundreds of applications on numerous platforms and projects within the crypto ecosystem,” Zhao stated in a blog post. He noted that the coin is used to pay transaction fees on many Binance exchange services, as well as pay fees on BSC-based DeFi services such as Pancakeswap.
BNB Consolidates Before Higher Highs
BNB has enjoyed an impressive bull rally since the beginning of the year. The token has posted year-to-date returns of over 1,200%, beginning at $37.40 and reaching a new all-time high of $640.50.
Binance Coin seems to have more room to go up regardless of the massive gains it has already posted. It entered a consolidation period shortly after its peak on Apr. 12. The recent downward price action seems to be creating the pennant of a bull pennant formation on the 4-hour chart. Meanwhile, the 79.50% upswing seen between Apr. 7 and 12 developed the pattern’s flagpole.
Another spike in buying pressure that sends BNB above the pennant’s upper trendline will signal the uptrend’s resumption. Under such unique circumstances, Binance Coin could rise by 44.30% toward the 127.2% Fibonacci retracement level at $750.
Failing to slice through the overhead resistance could lead to a downswing to the 50% Fibonacci retracement level at $478. Binance Coin must hold above this support level to avoid a steeper correction toward the 23.6% Fibonacci retracement level at $410.
Binance Coin is currently the third-largest cryptocurrency, boasting a market capitalization of $79 billion.
Disclosure: At the time of writing, this author owned Bitcoin and Ethereum.