Binance burns R$3 billion in BNB and sets a new record
CryptoFácil – Binance, the world’s largest cryptocurrency exchange, continues its goal of reducing the total number of cryptocurrencies in circulation to 100 million. To this end, the company announced the completion of the 22nd burn of its original token.
According to a statement from Binance, the recent burn removed 2.064 million BNB from circulation. Based on the current value of BNB, the burn corresponds to approximately R$3.1 billion.
Not only was this the largest burn of cash value, but it also set a record. After all, this is the largest BNB burn since the 14th. However, the current arson destroyed almost as much value as the action that took place in October last year.
The burning program is still active
Of the more than 2 million BNB burned, 7,181 came from the Pioneer Burn Program. Introduced on Binance in 2020, the program aims to help people who have lost access to their BNB after placing orders via the customer service page and being approved by the exchange.
Pioneer Burn works in conjunction with other BNB burns and advances the goal of reducing the token supply. According to Binance, the goal is to bring the BNB supply to 100 million — currently, close to 158 million.
BNB is a native token of Binance and offers holders discounts on transaction fees, among other perks. Its price, like other cryptocurrencies, has been on the rise since the beginning of the year. BNB opened the year around $240, but it is already above $300 according to CoinGecko data.
At the end of the week, the price of the token reached $315, which is the highest level the cryptocurrency has reached since the end of November 2022.
Although the news from Binance is positive and the price of BNB is still on the rise, the coin is facing a bearish pattern on the weekly chart.
This pattern usually predicts a trend reversal. As shown in the chart below, the pattern forms three peaks, with the two outer peaks next to each other and the middle peak being the highest. This is the pattern known as the “shoulder-head-shoulder”.
The left “shoulder” is formed when investors drive up the price and then temporarily lose enthusiasm. The “head” grows when enthusiasm reaches its peak.
Finally, the right shoulder forms when the price rises again but fails to reach its previous peak. Then it drops again, something that has not happened yet with the BNB price.
BNB’s weekly chart made up the week FTX declared bankruptcy. In the following weeks, the price fell before the recent rally in the BNB price thanks to a bullish market sentiment. However, BNB finds itself in a critical scenario.
If BNB breaks the “neckline” and drops as low as $210, the chart pattern can be validated and BNB may see a bearish trend in the coming weeks, pushing the price to $153.