3 key reasons BNB price may surge to $1,155 in 2025

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As a seasoned researcher with years of experience in the cryptocurrency market, I find myself increasingly impressed by the trajectory of Binance Coin (BNB). With its unique chart pattern and strong fundamentals, it seems poised for significant gains in the near term.

The continuous token burns, coupled with the increasing staking yield, are creating a scarcity that could drive up the BNB price. The network’s resilience in the face of growing competition within the industry is another testament to its strength.

Moreover, the impressive performance of Binance Smart Chain ecosystem, with over 900K active addresses and a total value locked of over $5.5 billion, underscores BNB’s potential for growth. The surge in volume handled by its DEX protocols, making it the second-biggest player after Ethereum (ETH), is another promising sign.

The cup and handle chart pattern forming since 2021 suggests a continuation of the upward trend, with a potential price target of $1,155, which is about 63% above its current level. This is a significant increase, but for those who have weathered the crypto market’s volatility, it’s all in a day’s work!

And remember, if you can’t stomach the risk, stay out of the kitchen – or in this case, the crypto market! But for those with a taste for adventure, the potential gains could be mouthwatering indeed.

As an analyst, I observed that the Binance Coin price maintained a stable position above $700. A distinct chart formation suggested further growth, possibly reaching towards $1,155 in the short term.

On New Year’s Day, Binance Coin (BNB) was being bought and sold around $707, slightly lower than its peak in December at $794, and more than double its projected 2024 low.

In the upcoming first quarter of this year, there are three significant factors that might propel the value of BNB coin noticeably higher.

Initially, the network has persisted in destroying its tokens, a process that is anticipated to eventually decrease its circulating supply from 144 million to 100 million. As per BNB Burn, the network is projected to carry out a token burn worth approximately $1.01 billion, which is equivalent to 1.63 million tokens, in the near future. Following this, it is expected to destroy an additional 1.5 million BNB coins valued at around $1.089 billion during the first quarter of the year.

Additionally to the quarterly auto-burns, the network continuously destroys more tokens daily through the gas fees collected. This method has already disposed of approximately 246,950 coins worth over $175 million since it was first introduced a few years back.

Over time, these burns will enhance the worth of BNB by reducing the number of tokens available and boosting the returns investors receive through staking. The yield on Binance Coin’s staking has decreased from a high of 12% in November to 2.3%, coinciding with a slight rise in the staking ratio to 20.32%.

To put it simply, despite intensifying competition within the sector, the Binance Smart Chain ecosystem is thriving. It boasts more than 905,640 active addresses, a locked-in value of over $5.5 billion, and over $6.86 billion in stablecoins.

The DEX protocols on BNB Chain have been performing strongly. In just the past week, the amount of transactions processed by these protocols increased by approximately 10%, reaching a staggering $13.42 billion. This latest surge in volume brings the total since the beginning to an impressive $1.16 trillion. As a result, BNB Chain now ranks as the second-largest player in this space, with Ethereum (ETH) leading the way after processing over $3.4 trillion worth of transactions.

BNB price strong technicals

3rd Point: Binance Coin could potentially surge higher in the long run due to its robust technical indications. On a weekly basis, the Binance Coin’s price appears to be gradually shaping into a ‘cup and handle’ chart formation, which is often seen as a bullish sign of continuation.

From 2021 up until June 2024, a container-like section, or what we might refer to as “the cup”, was created. Simultaneously, within the span of June and November, another area, often called “the handle”, took shape. The depth of this cup is approximately 74%. By taking the same measurement from the upper edge of the cup, a potential BNB price target emerges at around $1,155, which represents an increase of roughly 63% compared to its current position.

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2025-01-01 17:16