On Friday, November 1, the BNB Foundation announced the successful completion of the 29th quarter burn by the BNB chain. This latest event of the routine token burn reiterates the project’s commitment to a deflationary approach to ensure growth.
During this quarter’s event, a total of 1,772,712,363 BNB tokens (worth approximately $1.07 billion) were automatically burned. According to the foundation’s blog post, this quarter’s burn (and subsequent token burn events will occur) was performed directly on Binance Smart Chain (BSC), with the amount of burn sent to a “black hole” address.
Could the latest fire event push the price of BNB to $600?
Token burning, a process in which tokens or coins are deliberately and permanently removed from circulation, is performed to increase the value of a token. Likewise, the quarterly token burn could have a significant impact on the price of BNB by reducing the overall supply, creating a deflationary effect.
Furthermore, the consistency of quarterly BNB burns demonstrates the foundation’s commitment to the long-term growth and success of the token. This positive trend could have a positive impact on overall market sentiment by strengthening investor confidence in BNB’s potential as a stable investment.
However, it is worth looking at the impact of previous quarterly earnings on the BNB price to assess the potential effect of the latest event. Notably, the 28th token burn, which completed on July 22, 2024, didn’t exactly have a bullish impact on the value of the fourth-largest cryptocurrency.
According to data from CoinGecko, the price of the BNB token was just above $600 on July 22. Unexpectedly, the token’s price fell more than 22% to a low of $464 about two weeks after the burn event. BNB’s value appeared to have eroded under the bearish environment in the overall market.
The BNB token has largely been in a consolidation range in recent months, reflecting the state of Bitcoin and the overall crypto market. Fortunately, the major cryptocurrency appears to be back in the bullish zone after returning to $70,000 for the first time since June.
If the strong positive correlation between BNB and Bitcoin materializes, it means that investors could see the uptrend of Binance’s native token resume. Therefore, BNB seems to have a positive outlook and could recover $600 soon, especially if the flagship cryptocurrency remains bullish.
BNB price at a glance
At the time of writing, BNB is valued at approximately $571.8, reflecting a 0.6% price decline in the past 24 hours.