On Friday, November 1, BNB Announce Successful completion of the 29th quarterly burn of the BNB chain. This latest routine token burning event underscores 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 spontaneously burned in this quarter’s event. According to the organization’s blog post, this quarter’s token burn (and subsequent token burn events will be carried out) was carried out directly on the Binance Smart Chain (BSC), with the burn amount sent to a “black hole” address.
Could the latest burn event push the price of BNB to $600?
Token burning is a process in which tokens or coins are intentionally and permanently removed from circulation, to stimulate an increase in the value of the token. Likewise, a quarterly token burn can have a significant impact on the price of BNB by reducing the total supply, thus creating a deflationary effect.
Furthermore, the consistency of quarterly BNB burns demonstrates the organization’s dedication to the long-term growth and success of the token. This positive trend could positively impact overall market sentiment, as it boosts investors’ confidence in BNB’s potential as a stable investment.
However, it is worth considering the impact of previous quarterly downgrades on the BNB price to be able to gauge the potential impact of the latest event. It is worth noting that the 28th token burn, which was completed on July 22, 2024, did not have an upward impact on the value of the fourth-largest cryptocurrency.
According to data from CoinGecko, the price of the BNB token remained just above $600 as of July 22. Unexpectedly, the price of the token fell more than 22% to a low of $464 about two weeks after the burn event. The value of BNB appears to have collapsed in the bearish general market climate.
The BNB token has been mostly in a consolidation range over the past few months, reflecting the state of Bitcoin and the general cryptocurrency market. Fortunately, the leading cryptocurrency appears to be back in bullish territory after returning to the $70,000 level for the first time since June.
If the strong positive correlation between BNB and Bitcoin emerges, it means investors could see the native Binance token resume its upward trend. Hence, it seems that BNB has a positive outlook and could soon regain $600, especially if the flagship cryptocurrency remains bullish.
BNB price at a glance
As of this writing, BNB is worth around $571.8, reflecting a 0.6% price decline over the past 24 hours.