Binance Chain has just completed its 31st quarterly BNB token burn, permanently removing over $916 million worth of BNB from circulation. This strategic move is already stirring buzz among traders, with many expecting a potential price rally.
The burn supports BNB Chain’s long-term goal of bringing the token’s total supply down to 100 million. As of now, the supply sits at 140.89 million.
🔄 Binance Burns 1.5 Million BNB Tokens
This quarter, Binance burned approximately 1.5 million BNB tokens, which translates to a staggering $916 million. Despite this, over 40.8 million BNB still remain to be burned.
Former Binance CEO Changpeng Zhao highlighted the event in a recent post on X, drawing even more attention to the burn.
🔍 How BNB’s Auto-Burn Mechanism Works
The BNB token burn isn’t random. It’s carried out through an automatic burn system introduced via the BEP95 proposal. Every quarter, the system calculates the number of tokens to remove based on:
- BNB’s market price
- Number of blocks produced on Binance Smart Chain (BSC)
This ensures a consistent and transparent burn process aimed at reducing the token’s circulating supply.
📈 Will the Burn Drive BNB Price Higher?
Historically, token burns create scarcity, often leading to price increases. While that’s the general expectation, BNB’s price has been slow to react this time.
As of now, BNB is trading at $582.58, a 1.10% dip on the day. However, it’s still up 5.82% over the past week, despite being down 7.2% over the last month.
Even so, trading volume surged by $1.39 billion in 24 hours, reflecting a strong uptick in investor interest.
📊 Technical Analysis: Signs Point to Bullish Breakout
Technical indicators are sending mixed, yet hopeful, signals. Although bearish pressure exists, bullish momentum is building:
- BNB is aiming to reclaim the $600 resistance level.
- It’s seeking support above the 50-day EMA.
- The MACD indicator remains strong, suggesting resilience.
- A breakout above the descending trendline could push BNB toward the $635 resistance zone.
💡 What to Expect Next?
This massive token burn could pave the way for stronger price action in the coming weeks. If bullish momentum holds, BNB might soon test higher resistance levels and confirm its breakout.
Investors will be watching closely as BNB inches closer to the $600 psychological barrier, with hopes that shrinking supply will finally reflect in long-term price gains.
