Binance Coin price forecast: BNB Chain finishes $916M token burn for Q2
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BNB Chain’s auto-burn program adjusts according to block production and price movements.
The Chain finalized its 31st quarterly burn today, removing BNB worth over $916 million from circulation.
The move underscores the network’s dedication to shrinking BNB’s total supply to 100 million through its auto-burn approach.
The latest incineration has removed over 1.57 million tokens, sparking interest in BNB’s potential reaction.
Token burns introduce scarcity to boost the asset’s demand.
BNB Chain’s auto-burn mechanism
The protocol introduced a distinct deflationary model to manage Binance Coin supply.
Unlike manual burns, the automatic approach runs independently, using BNB’s average price and the number of produced blocks in a quarter.
The approach guarantees predictability and transparency, matching the burns with network usage and market activity.
The platform destroys more assets upon surged activity and transaction volume, aiming to reduce Binance Coin’s supply from 200 million to 100 million.
Notably, the quarterly burn differs from the fee-burning mechanism that the Chain introduced via the BEP-95 update, which burns gas fees in real-time to enhance the asset’s deflationary.
BNB Chain’s 31st burn destroys over 1.57M tokens
BNB Chain completed the latest burn on April 16, moving 1,579,207.716 tokens (worth approximately $916M) to a dead address.
The massive burn confirms the heightened activity and BNB’s value growth in the past quarter.
Meanwhile, the altcoin’s supply has reduced to around 140 million tokens, a significant step towards the 100 million target.
The amplifying deflationary will impact BNB’s price performance in the long term and the project’s overall tokenomics.
BNB price outlook
Binance’s native token trades at $577 after gaining nearly 4% in the past week.
It has lost 2% over the past day as Bitcoin remained stuck below $85K.
BNB’s current performance reflects the prevailing bear dominance in the crypto market.
However, the latest removal of BNB worth over $916 million might catalyze bullish short and medium-term price movements.
Reduced asset supply boosts scarcity, an essential component for influencing supply and demand.
Thus, BNB Chain’s token burns position Binance Coin for impressive price movements in the upcoming times.
Proponents trust that BNB’s current price is a bargain.
Dip buyers expect the altcoin to soar to $1,000, translating to an over 70% surge from current prices.
While BNB’s price performance remains at the mercy of broad market sentiments, the strategic token burns could propel BNB to record highs upon bullishness in Binance-related platforms.
With Binance’s continued expansion with Web3, DeFi, and NFTs, periodic token burns will cement BNB’s momentum amid surged demand.
Thus, Binance Coin remains poised to outperform during broad-based crypto rallies.
The post Binance Coin price forecast: BNB Chain finishes $916M token burn for Q2 appeared first on Invezz
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