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BNB Price Prediction: Binance Burns Nearly 2 Million BNB, Will it Affect the Price?
Binance has burned nearly 2 million BNB tokens, reducing the total supply of the token by 1%. Will it Affect the BNB price? Find out more.
Key Points:
Nearly 2 million $BNB tokens burned by Binance
Token burnings aim to reduce supply and increase a token’s price
Historical data suggests that burns have a minimal impact on $BNB’s price action in the short term.
Binance has confirmed the completion of its 24th quarterly $BNB burn event. The most recent token burn saw nearly two million BNB tokens burned, with an estimated value of around $484 million, representing almost 1% of the total token supply. The most important question is whether the most recent burning will affect the price of $BNB. This BNB price prediction article will help you find an answer and explain the burn mechanism.
What Is A Token-Burn Mechanism?
Following $BNB’s launch in 2017, Binance promised to remove millions of tokens from circulation through burning. The idea behind the burn is that it will tilt the supply-demand scale in favour of the latter, thus creating positive price action. Tokens are generally burned by sending them to a permanently locked wallet or via a smart contract.
Binance Completes Burn of Nearly 2 Million BNB
The 24th successful burn was announced on July 19th, and according to the official report, used both the Auto-Burn as well as the Pioneer Burn Program. In total, 1,991,854.33 BNB tokens were burnt, with an estimated value of $484,160,000 at the time of the burn. The most recent burn is another step toward Binance’s commitment to burning 100 million BNB tokens, half of its supply.
$BNB’s price hasn’t changed much in the past 24 hours.
How Will The Token Burn Affect The Price Of BNB?
To begin with, it is important to understand why Binance burns tokens. Although the theory behind burning suggests that it will increase the price of BNB, in reality, it’s less straightforward. In the short term, the burn has had little impact on $BNB’s price. The price has remained stable in the past 24 hours at around $242, although it almost touched $244 shortly before the burn report was published.
Even though the market was aware of the upcoming burn, the token has seen very little change in its price over the last 30 days. Meanwhile, on the 60-day chart, it's down just over 20%.
Despite the lacklustre price action, there’s some evidence that whales loaded up on $BNB following the burn. According to Whale Alert, several large $BNB transactions occurred after the burn that saw millions of dollars worth of $BNB moved from Binance to unknown wallets; usually, when tokens are moved off an exchange, it’s because the trader doesn’t plan to sell them in the short to medium term.
Whale Alert reports several large $BNB transactions following the burn. Source: Whale Alert
Trying to predict the direct impact of the burn on the price of $BNB in the long term is very difficult due to the number of variables that impact the token's price. However, a reduced supply should be an overall positive for price action rather than a negative.
How Have Previous BNB Burns Affected Its Price?
Looking at the price action following past burns can give us some idea of historical price patterns. The 22nd burn was confirmed on January 17th and saw just over two million $BNB burned with a value of around $575 million at the time. The burn was followed by a period of consolidation that saw small pockets of volatility. A month after the burn, $BNB had gained roughly 3%.
The 23rd burn, which occurred in April, was followed by consolidation and a downtrend a month later. The historical outcome of burns shows that their impact in the short term is relatively minimal, as market conditions appear to drive $BNB’s price regardless of the drop in supply.
BNB Community Reacts to BNB Burn
The historical data doesn’t appear to have deterred $BNB enthusiasts on Twitter from celebrating the supply reduction. Several users tweeted their support for the initiative, such as MR RIGHT, who, like countless others, suggested the burn would help $BNB head toward new highs or even the “moon”.
Twitter shows love for the BNB burn. Source: Twitter
What Does BNB Burn Mean For Binance?
The successful completion of the 24th $BNB burn is another step toward Binance fulfilling its promise to burn 50% of the $BNB token’s total supply. The price action since the burn has been stable with no swings either way and data from past burns suggests that the burn’s impact is minimal in the short term.
#BNB #tokenburn
Key Points:
Nearly 2 million $BNB tokens burned by Binance
Token burnings aim to reduce supply and increase a token’s price
Historical data suggests that burns have a minimal impact on $BNB’s price action in the short term.
Binance has confirmed the completion of its 24th quarterly $BNB burn event. The most recent token burn saw nearly two million BNB tokens burned, with an estimated value of around $484 million, representing almost 1% of the total token supply. The most important question is whether the most recent burning will affect the price of $BNB. This BNB price prediction article will help you find an answer and explain the burn mechanism.
What Is A Token-Burn Mechanism?
Following $BNB’s launch in 2017, Binance promised to remove millions of tokens from circulation through burning. The idea behind the burn is that it will tilt the supply-demand scale in favour of the latter, thus creating positive price action. Tokens are generally burned by sending them to a permanently locked wallet or via a smart contract.
Binance Completes Burn of Nearly 2 Million BNB
The 24th successful burn was announced on July 19th, and according to the official report, used both the Auto-Burn as well as the Pioneer Burn Program. In total, 1,991,854.33 BNB tokens were burnt, with an estimated value of $484,160,000 at the time of the burn. The most recent burn is another step toward Binance’s commitment to burning 100 million BNB tokens, half of its supply.
$BNB’s price hasn’t changed much in the past 24 hours.
How Will The Token Burn Affect The Price Of BNB?
To begin with, it is important to understand why Binance burns tokens. Although the theory behind burning suggests that it will increase the price of BNB, in reality, it’s less straightforward. In the short term, the burn has had little impact on $BNB’s price. The price has remained stable in the past 24 hours at around $242, although it almost touched $244 shortly before the burn report was published.
Even though the market was aware of the upcoming burn, the token has seen very little change in its price over the last 30 days. Meanwhile, on the 60-day chart, it's down just over 20%.
Despite the lacklustre price action, there’s some evidence that whales loaded up on $BNB following the burn. According to Whale Alert, several large $BNB transactions occurred after the burn that saw millions of dollars worth of $BNB moved from Binance to unknown wallets; usually, when tokens are moved off an exchange, it’s because the trader doesn’t plan to sell them in the short to medium term.
Whale Alert reports several large $BNB transactions following the burn. Source: Whale Alert
Trying to predict the direct impact of the burn on the price of $BNB in the long term is very difficult due to the number of variables that impact the token's price. However, a reduced supply should be an overall positive for price action rather than a negative.
How Have Previous BNB Burns Affected Its Price?
Looking at the price action following past burns can give us some idea of historical price patterns. The 22nd burn was confirmed on January 17th and saw just over two million $BNB burned with a value of around $575 million at the time. The burn was followed by a period of consolidation that saw small pockets of volatility. A month after the burn, $BNB had gained roughly 3%.
The 23rd burn, which occurred in April, was followed by consolidation and a downtrend a month later. The historical outcome of burns shows that their impact in the short term is relatively minimal, as market conditions appear to drive $BNB’s price regardless of the drop in supply.
BNB Community Reacts to BNB Burn
The historical data doesn’t appear to have deterred $BNB enthusiasts on Twitter from celebrating the supply reduction. Several users tweeted their support for the initiative, such as MR RIGHT, who, like countless others, suggested the burn would help $BNB head toward new highs or even the “moon”.
Twitter shows love for the BNB burn. Source: Twitter
What Does BNB Burn Mean For Binance?
The successful completion of the 24th $BNB burn is another step toward Binance fulfilling its promise to burn 50% of the $BNB token’s total supply. The price action since the burn has been stable with no swings either way and data from past burns suggests that the burn’s impact is minimal in the short term.
#BNB #tokenburn
