Binance, the world's largest cryptocurrency exchange is in the news again. This time, for something amazing.
According to a new announcement from the crypto exchange, the chances of seeing a BNB price rally very soon just got a lot better.
More details below.
According to this announcement tweet from Binance's official Twitter handle, the crypto exchange has just completed its 25th quarterly BNB burn.
Burning, for the unaware, refers to permanently removing a certain number of coins from circulation by sending them to a "burn wallet", or a "dead address".
By extension, the remaining circulating coins become more scarce, and therefore more expensive.
According to Binance's announcement, the crypto exchange has burned a whopping 2.14 million BNB tokens, worth over $453 million at current market prices.
Binance has been burning BNB since the year of its launch in 2017.
Every three months (or every quarter), the company removes a certain amount of BNB from the circulating supply, as part of its mission to remove 100 million BNB tokens from circulation.
The latest burn, according to this blog post, is the 25th in a row and is the largest amount of BNB that Binance has ever burned at a go (last quarter, the exchange burned a whopping 1.99 million BNB).
This current BNB burn also includes 314.69 tokens burned through the company's Pioneer Burn program.
According to Binance, the Pioneer Burn Program allows users to recover BNB tokens that they have mistakenly sent to the wrong address.
The short-term effects of such large amounts of BNB being burned can be hard to predict.
However, the long-term effects are assuredly bullish
BNB is currently trading at about $213 at the time of writing, and is up by 2.65% over the last day, and by 3% over the last week.
This seems bullish enough and shows that the crypto community is receiving the news warmly.
In the chart, we can see that BNB entered a massive decline, after breaking below an important trendline, sometime in early June.
In terms of current price action, the price of BNB is currently testing an important support zone around $203 as illustrated below, and must remain above this zone.
If there is any kind of break below, we may see BNB decline drastically to about $185.
However, if a break below does not occur, the bulls would have gathered all they need to make a move against the bears, and we may see a BNB break above the $220 resistance.
Beyond this point, BNB becomes free to explore levels around $260 or even higher.
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