Binance Coin (BNB) has been steadily holding above the $700 mark, with a unique chart pattern indicating potential gains to $1,155 in the near term. As of January 1, BNB was trading at $707, just below its December high of $794 and a notable 200% above its 2024 low.

Three Key Catalysts for BNB Price Growth

The BNB coin faces three significant catalysts that could drive its price higher in the first quarter of this year. Firstly, the network continues to burn its tokens, aiming to reduce its outstanding coins from 144 million to 100 million over time. According to the BNB burn schedule, a 1.63 million token burn worth $1.01 billion is expected to conclude soon, followed by another 1.5 million BNB coins worth $1.089 billion in the first quarter.

In addition to these quarterly autoburns, the network incinerates more tokens daily from the gas fees generated, having already destroyed 246,950 coins with a value of over $175 million since its inception. These burns create more value for BNB price over time by making its tokens rarer and increasing the sums staking investors receive.

BNB Staking Yield and Ecosystem Performance

Binance Coin’s staking yield has decreased from 12% in November to 2.3% as the staking ratio rose slightly to 20.32%. Meanwhile, the Binance Smart Chain ecosystem remains relatively strong despite increased industry competition. It boasts over 905,640 active addresses, a total value locked of over $5.5 billion, and stablecoins worth $6.86 billion.

BNB Chain’s DEX protocols have continued to perform well, with the volume handled by its protocols rising by 10% in the last seven days to over $13.42 billion. This has brought the total volume since inception to $1.16 trillion, making it the second-largest player after Ethereum.

BNB Price Strong Technicals

Binance Coin’s technicals also suggest a potential price surge in the longer term. The weekly chart shows that the BNB price has been forming a cup and handle chart pattern, a popular sign of continuation. The cup section formed between 2021 and June 2024, while the handle area formed between June and November.

By measuring the depth of the cup, which is about 74%, and applying the same distance to the cup’s upper side, the BNB price target is $1,155, representing a 63% increase from the current level.

As the BNB price continues to show resilience and potential for growth, investors should keep a close eye on its progress.

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