BNB Foundation Completes 29th Quarterly Burn of 1.77 Million Tokens
On November 1, the BNB Foundation announced the completion of the 29th quarterly burn by the BNB Chain. This event underscores the project's deflationary strategy aimed at promoting growth.
A total of 1,772,712.363 BNB tokens, valued at approximately $1.07 billion, were burned this quarter. The foundation's blog post indicated that future burns will occur directly on Binance Smart Chain (BSC), with the burnt tokens sent to a “black hole” address.
Can The Latest Burn Event Propel BNB’s Price To $600?
Token burning removes tokens from circulation to potentially increase their value. The quarterly token burn impacts BNB’s price by reducing supply, thus creating a deflationary effect.
The regularity of these burns demonstrates the foundation’s commitment to the token's long-term success, which may enhance market sentiment and investor confidence in BNB as a stable investment.
However, examining prior burns is essential for assessing potential effects. The 28th burn on July 22, 2024, did not lead to a price increase; BNB's price fell over 22% from just above $600 to a low of $464 two weeks post-burn due to broader market bearishness.
Recently, BNB has remained in a consolidation phase, reflecting trends in Bitcoin and the overall crypto market. Bitcoin has shown signs of recovery, recently reaching $70,000. A strong correlation between BNB and Bitcoin suggests that if Bitcoin continues to perform well, BNB may also rise, potentially reclaiming the $600 mark.
BNB Price At A Glance
Currently, BNB is valued at approximately $571.8, reflecting a 0.6% decrease in the last 24 hours.
