BNB Token Burn: $1 Billion Of Tokens Sent To ‘Black Hole’ Address — Impact On Price?
02 Novembre 2024 - 11:30AM
NEWSBTC
On Friday, November 1, the BNB Foundation announced the successful
completion of the 29th quarterly burn by the BNB Chain. This latest
event of the routine token burn reiterates the project’s commitment
to a deflationary approach in order to ensure growth. A total of
1,772,712.363 BNB tokens (worth approximately $1.07 billion) were
automatically burned in this quarter’s event. According to the
foundation’s blog post, this quarter’s burning was (and subsequent
token burning events will be) performed directly on Binance Smart
Chain (BSC), with the burn amount sent to a “black hole” address.
Can The Latest Burn Event Propel BNB’s Price To $600? Token
burning, a process in which tokens or coins are purposely and
permanently removed from circulation, is carried out to trigger an
increase in a token’s value. Similarly, the quarterly token burn
can have a significant impact on BNB’s price by decreasing the
total supply, thereby creating a deflationary effect. Related
Reading: Dogecoin Bollinger Bands Squeezes Tighter Than It Was
Before 2021 Rally, What This Means Moreover, the consistency of the
quarterly BNB burns shows the dedication of the foundation to the
long-term growth and success of the token. This positive trend
could favorably impact general market sentiment, as it strengthens
investors’ trust in BNB’s potential as a stable investment.
However, it is worth looking at the impact of previous quarterly
burns on the BNB price to be able to gauge the potential effect of
the latest event. Notably, the 28th token burn, which was completed
on July 22, 2024, didn’t exactly have a bullish impact on the value
of the fourth-largest cryptocurrency. According to data from
CoinGecko, the price of the BNB token sat just above $600 as of
July 22. Unexpectedly, the token’s price fell more than 22% to a
low of $464 about two weeks after the burn event. BNB’s value
seemed to have crumbled under the bearish climate of the general
market. The BNB token has mostly been in a consolidation range over
the past few months, mirroring the state of Bitcoin and the general
crypto market. Fortunately, the premier cryptocurrency seems to be
back in the bullish zone after returning to $70,000 for the first
time since June. If the strong positive correlation between BNB and
Bitcoin plays out, it means that investors could see Binance’s
native token resume its upward trend. Hence, BNB seems to have a
positive outlook and could soon reclaim $600, especially if the
flagship cryptocurrency remains bullish. BNB Price At A Glance As
of this writing, the value of BNB stands around $571.8, reflecting
a 0.6% price dip in the past 24 hours. Related Reading: Analyst
Exposes Ethereum Ascending Support At $2,400 – Best Chance To
Accumulate ETH? Featured image from Shutterstock, chart from
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