On Friday, November 1, the BNB Foundation announced that the 29th quarterly burn of the BNB Chain was successfully completed. The latest event of regular token burns reiterates the project’s commitment to a deflationary approach 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 burn was conducted directly on Binance Smart Chain (BSC) and the burn amount was sent to a “black hole” address.
Could the latest burn event push BNB price to $600?
Token burning is the process of intentionally and permanently removing a token or coin from circulation, performed in order to trigger an increase in the value of the token. Likewise, quarterly token burns can have a significant impact on the BNB price by reducing total supply, creating a deflationary effect.
Additionally, the consistency of quarterly BNB burns demonstrates the Foundation’s commitment to the long-term growth and success of the token. This positive trend could have a positive impact on overall market sentiment as it strengthens investor confidence in BNB’s potential as a stable investment.
However, it is worth looking at the impact of previous quarterly burns on the BNB price so that you can 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.
The price of the BNB token was just over $600 as of July 22, according to data from CoinGecko. Unexpectedly, the token price fell by more than 22% to a low of $464 about two weeks after the burn event. The value of BNB appears to have collapsed due to the bearish environment in the general market.
The BNB token has been in a mostly consolidated range for the past few months, reflecting the state of Bitcoin and the general cryptocurrency market. Fortunately, the top cryptocurrency appears to be on the rise again after returning to $70,000 for the first time since June.
If we see a strong positive correlation between BNB and Bitcoin, it means investors could see Binance’s native token resume its upward trend. Therefore, BNB appears to have a positive outlook and could soon claw back $600, especially if the flagship cryptocurrency remains strong.
BNB price at a glance
At the time of this writing, the value of BNB is approximately $571.8, reflecting a 0.6% price decline over the past 24 hours.