TL: DR Breakdown
- A Binance Coin burn is expected to happen shortly.
- BNB has already reached a new ATH.
The last six months have been rosy for the crypto market, and Binance Coin (BNB) has been one of the biggest beneficiaries of the stregthened bull run. The upward streak continues in 2021 as market dynamics heat up. Back in October 2020, Binance did a BNB coin burn, locking out around 2.25 million coins. Now, another coin burn is about to happen, and things are already good pricewise.
Right before the coin burn planned for this January, BNB made a sharp surge that resulted in a new all-time high of around $46.80 on the 18th of January, 2021. The crypto has since pulled back a bit to trade at the current value of $45.40. BNB is now at position 11 in the charts with a total market cap of around $6.4 billion.
Binance Coin burn is a routine
Coin burn conducted by Binance is a quarterly routine, with the last one having happened back in October 2020 as mentioned. The ultimate goal of these burn events is to discard the excess coins to reach a final figure of around 100 million Binance Coins in circulation.
Scarcity to increase demand
For one, a coin burn reduces the number of BNB tokens in circulation. Such a reduction results in a corresponding increase in demand and value. In fact, the crypto’s price has already spiked even before the coin burn.
Three million BNB staked
Besides coin burning, Binance has other factors backing up the market value and popularity of BNB. These include the Binance Launchpad and Binance Chain, fast blockchain networks that facilitate the creation and running of smart contracts and DeFi applications.
The chains now host over 60 projects with around 600,000 unique addresses. The validators operating in the network have already staked upwards of three million Binance Coins.
BNB Twitter buzz
Of late, Binance Coin has been a topic of discussion in various social media platforms, most notable of which is Twitter. Crypto Twitter has been known to offer extensive coverage of debates concerning the developments in the blockchain and crypto space. In the case of BNB, the twitter buzz heighted back in September 2020 after the launch of the Binance Smart Chain. As has always been the case, a crypto token gets more favored by investors when there’s a big social hype about it.