Binance Completes 29th Quarterly BNB Token Burn

Binance, the largest cryptocurrency exchange by trading volume, has completed its 29th quarterly BNB token burn, effectively removing over 1.7 million BNB tokens from circulation. This initiative, announced on November 1, saw a total of 1,772,712.363 BNB tokens burned.

Details of the Burn

The total burn consisted of two parts:

  • 1,710,142.733 BNB were removed through Binance’s regular Auto-Burn process. This is a quarterly mechanism designed to reduce the total BNB supply.
  • An additional 62,569.63 BNB was burned to address an issue with BTokens, which are tokens created when assets are bridged onto the Binance Smart Chain. Some users accidentally sent these BTokens to inactive addresses, locking them up. To compensate for these lost tokens, Binance reimbursed users through its Pioneer Burn Program and included the unburned portion in this quarter’s burn.

This burn accounted for 1.22% of BNB’s total supply, valued at approximately $1.07 billion at current prices. In comparison, Binance removed over 1.64 million BNB tokens in July, valued at around $971 million.

Impact on BNB Price

Despite the burn, BNB’s price remained largely unfazed. At the time of writing, BNB was trading at $576.98, down 1%, with its market cap dropping by 2.1% to $83.27 billion. The token had previously rallied to a three-month high of $615.50 on September 28, following the release of former Binance CEO Changpeng Zhao from prison after serving a four-month sentence.

Since then, BNB has attempted to reclaim those levels but faced resistance around $610. Technical indicators suggest that BNB’s price is currently consolidating.

Technical Analysis

On the 1-day BNB/USDT price chart, BNB’s Relative Strength Index (RSI) stood at 47, while the Average Direction Index (ADX) showed a reading of 11, indicating a weak current trend. This suggests that the altcoin could continue to trade within a range.

Further analysis shows a bearish crossover on the Moving Average Convergence Divergence (MACD) histogram. The MACD line below the signal line hints at potential downside pressure. However, without stronger trend signals, significant movements in either direction are unlikely.

“BNB’s price is compressed into an apex,” noted pseudonymous trader Crypto Yapper, adding that this often signals a major breakout, but the price could move towards either the topside or the downside.

For more insights and updates on the world of cryptocurrencies, investing, and finance, keep exploring the latest news on Global Crypto News.

#CryptoInvestor #CryptoBulls #AI

Post Views: 8