- Binance has recently removed 477,388 Binance Coins (BNB) from circulation.
- Binance will conduct quarterly burning until it successfully removes half of the total supply (100 million).
- The strategy is intended to reduce the supply of BNB and increase its value.
- The burning triggered a price spike, following which it faced a bearish correction.
Binance cryptocurrency exchange has recently removed 477,388 BNB tokens (worth around $60.5 million) from circulation, marking the biggest burn to date. Binance has been burning a certain amount of coins every quarter until it eliminates 100 million BNB from circulation, representing half of the total 200 million BNB ever issued.
The number of burnt coins is determined by the number of trades performed on Binance in a three-month window. The strategy is intended to reduce the supply of BNB and increase its value. This burning event comes during the month of Binance’s third anniversary. The Exchange created BNB in 2017 as a utility token that traders can use to get lower fees.
BNB/USD daily chart
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BNB/USD has dropped from $17.735 to $17.67 so far this Wednesday. BNB/USD was charting the cup and saucer pattern, and following the coin burn, the price jumped to $18. Therein, the price dropped after encountering heavy resistance. Since then, the buyers and sellers have wrestled for control of the market. The MACD shows decreasing bullish momentum.
Support and Resistance
BNB/USD has strong resistance at $18 and $18.40. On the downside, we have healthy support at $17.45, $17.16 (SMA 20), $17 and $16.71 (SMA 50).
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