Binance’s latest 1.6M token burn – Enough to push BNB above $600?
As BNB burns intensify, here's a look at whether shrinking supply will help the token overcome $600 resistance in 2024.
- 1.64 million BNB tokens worth nearly $970 million were burned in the second quarter of 2024.
- Recent price action shows resistance around $600 level.
Binance Coin [BNB] has completed another significant token burn in the second quarter of 2024. Data from Bscscan reveals 1,643,698.8 BNB tokens were removed from circulation, valued at approximately $969 million at the time of the burn.
This substantial reduction in supply continues BNB’s deflationary trend.
Source: Bscscan
The burn rate remains strong, aligning with Binance long-term strategy to reduce its total supply. Each quarterly burn is aimed at reducing the circulating supply contracts and potentially creating upward pressure on token value.
Despite the recent burn, BNB’s price is still struggling to break above key resistance levels. BNB was trading around $599 at press time. It is currently encountering selling pressure near the $600 mark.
The price may be plummeting for a short-term correction before further surges.
Source: Tradingview
Liquidations spike as traders position for moves
Coinglass liquidation data highlights significant long liquidations in recent weeks. It’s important to note that these forced closures of leveraged positions often coincide with short-term price volatility.
A massive long liquidation event occurred in early July, followed by a sharp price recovery.
Source: Coinglass
BNB supply squeeze
The supply of BNB is decreasing, while creating potential for price appreciation. However, market participants must weigh this against overall crypto market conditions.
The role of token burns in driving sustainable price growth remains a topic of debate within the crypto community.
Read Binance (BNB) Price Prediction 2024-25
Looking ahead to the third quarter of 2024, projections indicate an even larger burn of approximately 1,708,829 BNB tokens.
As this next burn approaches, traders and investors should closely monitor whether the ongoing supply reduction can overcome current resistance levels and propel it to new heights in the latter half of 2024.
