As recently as on February 12, our editorial team wrote a piece about BNB titled “Top 3 Reasons Why Binance BNB Maybe the Next Big Thing”. We identified that BNB has all the ingredients going for it to see its price action surge in the weeks ahead.
Back then, BNB was ranging between US$120 to US$130.
Barely less than a week after our BNB piece, BNB started its mind blowing and stratospheric rise from $130 to $270 (as of this writing), representing a 200% increase.
We picked up the note from Binance during their last BNB Quarterly Burn report that they will be accelerating their token burn. This makes total sense as it will be more expensive for Binance to acquire their own token for “burning” as the price of their own token starts to move up with the general cryptocurrency market. It is in their interest to accumulate BNB even at these present price range.
Binance has committed to burning 50% of their total supply. This means a total of 100 million BNB tokens are to be burnt ultimately. In their last quarterly burn report, Binance has reported close to 30 million BNB tokens burnt. Another 70 million BNB to go.
As the spot trading volume on Binance seems to hover in the $30 billion range, and their derivatives market around the $35 billion range, would imply that revenue is stagnating. Nevertheless, Binance trading revenue is still huge by any standard as their last burn exercise spent “just” $165 million. And that was in the last quarter of 2020 before their volume started to average around $20 billion to $30 billion this year.
The signs of Binance accelerating their token burn process seems evident from last week’s price action.
The big does gets bigger. Looking at Binance Smart Chain activity, their BSC transaction rose from around 830,000 on February 4 to nearly 2.5 million on February 18, a three times increase.
The stars seems aligned for BNB token price appreciation. Will it ever hit $1000 per BNB? Only time will tell. In the meantime, we always advise caution in trading any cryptocurrency. Invest what you can afford to lose entirely. It is high risk.
[ Read more: Top 3 Reasons Why Binance BNB Maybe the Next Big Thing ]
