Binance burns over $950 million in BNB, will price cross $700?

fxstreet.com 23 July 2024 14:36, UTC

Binance removed over 1.64 million BNB from circulation, early on Monday, per official announcement.
BNB social dominance and volume recovered on Tuesday, per on-chain data.
BNB hovers around $585, awaiting a catalyst to break past key resistance at $664.

Binance Coin (BNB) price is nearly unchanged in the past month. Data from TradingView shows BNB price is $585 at the time of writing. On-chain metrics support a thesis of gains in BNB, as social dominance and volume climbs this week.

Binance burns $963 million in BNB tokens

The largest exchange by volume announced a burn of 1,643,698.80 BNB tokens worth over $963 million, on Monday, July 22. The burned BNB tokens are permanently removed from circulation, reducing the asset’s supply and the selling pressure.

The official announcement by the exchange confirms that the burn was the 28th quarterly token burn event and at the time of burn, the approximate value was $971 million.

BNB burn by Binance.

Typically, reduction in an asset’s circulating tokens has a net positive effect on price. However, the recent burn failed to catalyze gains in BNB. BNB trades around $585 at the time of writing. Santiment data shows two on-chain metrics, social dominance and volume have increased this week.

Social dominance measures the mentions of a token among market participants across social media platforms. BNB’s social dominance is close to 1% on Tuesday. Volume has climbed from 1.58 billion on July 20 to 2.01 billion on July 23, as seen in the Santiment chart below.

The two on-chain metrics support a thesis of recovery in BNB price.

Social dominance and volume

BNB price eyes return to 2024 peak of $721.80

Binance Coin (BNB) trades around $585 at the time of writing. Binance Coin is likely to extend gains by 24% and revisit 2024 peak of $721.80, seen previously on June 6.

Binance’s native token could face resistance at $588, $664 and $677, the 50% and 78.6% Fibonacci retracement of the decline from June 6 top of $721 to July 5 low of $454, and the upper boundary of the Fair Value Gap (FVG) respectively.

The momentum indicator, Moving Average Convergence Divergence (MACD) supports a recovery in BNB, it indicates positive underlying momentum in Binance Coin’s price.