Binance Burns 1.4 Million BNB Tokens: Is a Rise to $1.5K Possible?

Binance burns 1.4 million BNB tokens, but will it push BNB past $1.5K?

In its recent deflationary move, BNB Chain has burned 1.44 million BNB tokens, valued at over $1.65 billion. This burn initiative, which began in 2017, has successfully reduced the total supply by removing 64.26 million BNB so far. With only 137.7 million BNB tokens remaining in circulation, the rate of supply reduction suggests BNB could dip below 100 million over the next decade.

Key Takeaways

BNB Chain has burned 1.44 million BNB tokens, worth over $1.65 billion.
The burn program, initiated in 2017, has eliminated 64.26 million BNB tokens to date.
Currently, 137.7 million BNB tokens are left in circulation.
At a burn rate of approximately 4 million BNB per year, the supply could fall below 100 million in the next ten years.

Binance BNB

The Impact of Deflation on BNB Chain Activity

As Binance continues to form new partnerships and expand its blockchain presence—such as incorporating countries like Kyrgyzstan—this increased activity is likely to generate more transaction fees, thereby raising the burn rate of BNB further. The resulting supply constraints could speed up over the next few years.

Binance's founder, CZ, has attributed the growing interest in BNB to "building and community efforts," linked to rising demand from treasury firms. Additionally, there are comparisons to be made between BNB and Hyperliquid (HYPE), which is also implementing a strong deflationary strategy, allowing HYPE to maintain a competitive edge through its quality product and buyback initiatives.

Could BNB Stay Above $1K?

Currently, BNB is holding well above the critical $1,000 level, despite facing a rejection near $1,400. If BNB manages to surpass this previous high, the next bullish target may be $1,500.

Binance BNB

Technical indicators have shown some bullish tendencies despite recent price dips. For instance, the daily Relative Strength Index (RSI) remains above average, and the On-Balance Volume (OBV) has not dropped below its critical trendline support this year. This suggests a positive outlook.

Moreover, on-chain data supports this bullish sentiment. As per Arkham’s data, the net on-chain exchange flow in October has been negative, indicating that holders have not aggressively sold off BNB even during market fluctuations. At present, the average outflow from exchanges is 179,000 BNB tokens, which indicates a trend of moving BNB into self-custody—interpreted as a positive sign.

Arkham

The combined effects of the deflationary program, the increase in network activity, and the positive on-chain metrics contribute to a generally bullish view on BNB. This could favor long-term investment or holding strategies. However, traders should remain cautious as short-term factors, such as broader economic conditions or negative news, could still influence price movements.