BNB Price Holds Steady Despite Binance’s Burn of 1.7 Million Tokens

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BNB Price Holds Steady Despite Binance’s Burn of 1.7 Million Tokens

Binance, the largest digital currency exchange based on trading volume, saw through its 29th quarterly BNB token burn, which saw 1,772,712.363 BNB canceled out. This is part of Binance’s continuing effort to deleverage and decrease the circulating supply of BNB, its native token.

The burn had two primary parts. The first and biggest amount was the BNB 1,710,142.733 burned through Binance’s Auto-Burn process, which occurs quarterly with the objective of reducing BNB supply.

Also, 62,569.63 BNB was burnt by Binance under the Pioneer Burn Program, which seeks to correct an issue affecting the BTokens tokens that are created when assets in other blockchains are transferred to BSC.’s ongoing initiative to reduce the total supply of BNB gradually, the exchange’s native token.

Binance’s Token Burn Process Explained: Auto-Burn and Pioneer Burn Program

The burn consisted of two main components. The first and most significant portion involved 1,710,142.733 BNB, burned through Binance’s Auto-Burn process, a quarterly mechanism designed to reduce BNB supply by removing a set number of tokens. Additionally, 62,569.63 BNB was burned as part of Binance’s Pioneer Burn Program, which addresses an issue affecting BTokens tokens created when assets are bridged to the Binance Smart Chain.

The lawsuit stated that such users lost the keys to these addresses, and effectively, their BTokens have been locked in those addresses. Binance distributed the unburned tokens back to users to compensate for these lost tokens and folded them into this quarter’s burn.

Altogether, burned tokens constituted slightly over 1.22% of the overall BNB supply at the time and are valued today at slightly over $1,070 million at the current rate. This is the second time the company has performed a token burn after doing so previously in July when it eliminated more than 1.64 million BNB, which is equivalent to approximately $971 million.

Even after the company’s tokens were burnt for a billion dollars, BNB’s price had a dull response, sitting at 1% down at the time of writing and hovering around $576.98. At the end of the trading week, it lost 2.1% of its market capitalization, which stood at about $83.27 billion. BNB traded to a high of $615.50 on September 28, 2022, after former Binance CEO Changpeng Zhao was discharged from prison after serving a four-month jail term and has since formed a resistance at the $610 mark to trade under it.

Trading view signals now point to BNB continuing in the lateral movement. The BNB/USDT 1-day chart displays a neutrality in the market based on the Relative Strength Index (RSI) which returns a figure of 47 and a weak trend based on the Average Directional Index, which returns a figure of 11. At the same time, a bearish crossover of the trend rose in the MACD histogram, indicating that the MACD line has fallen below the signal line. Still, significant price movements are possible only with a stronger trend signal.

Pseudonymous trader Crypto Yapper said this as they noted that it seems BNB was in the middle of the apex, identified by two strong support and resistance points. As few other cryptocurrencies know, such price compression can often signify an impending breakout, Crypto Yapper opined that BNB could move “either to the topside or the downside” closer to this critical milestone.

Since BNB’s price oscillates close to the range, future movements will be unpredictable, and traders await signs to help BNB escape the consolidation range.

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