The price of Binance Coin appears ready for a substantial bullish rally as the network persists in burning more coins.
On Tuesday, Binance Coin (BNB) traded at $620, showing a 20% increase from its March lows and sitting 22% below its all-time high.
BNB has surpassed Bitcoin (BTC) and other layer-1 tokens such as Cardano (ADA) and Solana (SOL) thanks to its impressive ecosystem expansion.
According to data from a reliable source, the total value locked within its ecosystem climbed to $5.17 billion in March. In contrast, several other leading layer-1 networks experienced asset losses during the same timeframe. Additional statistics indicate that the decentralized exchanges on this network processed over $43 billion in volume in March.
BNB has also outperformed numerous altcoins due to its distinctly deflationary characteristics. The token achieves this through two forms of burning that effectively diminish the circulating supply.
It features a real-time burn mechanism that incinerates a fixed proportion of gas fees generated by the network. In the last week, this method destroyed 939 BNB, valued at around $577,838. In total, it has eliminated nearly $160 million worth of tokens.
Additionally, the network conducts a quarterly auto-burn based on the number of blocks produced each quarter. This process resulted in the burning of 1.57 million BNB, worth approximately $1.01 billion, during the first quarter, with another burn expected in the coming months.
The goal is to reduce the circulating supply of BNB from 142 million to 100 million coins.
The price of BNB also gained traction following the developers’ implementation of the Pascal hard fork, which enhances its compatibility with Ethereum. Another hard fork is scheduled for this month and in June, aimed at improving transaction speeds.
BNB Price Analysis
The most promising scenario for BNB is its robust technical setup. The weekly chart indicates that the coin has formed an ascending channel over the past several months. This channel is creating the handle portion of a cup and handle pattern, a widely recognized bullish continuation signal.
Binance Coin has also consistently traded above the 50-week moving average, serving as another encouraging sign. Consequently, BNB is likely to keep climbing as bulls aim for the crucial resistance level at $790, which was its peak swing in December, representing a 28% increase from current prices. This bullish outlook will be validated if the price surpasses the significant resistance at $662.