Among the top cryptocurrencies, Binance Coin – currently ranked fifth by market cap – has managed to steer clear of the recent crypto downturn and remains close to its record high value.
As an analyst, I observed that Binance Coin (BNB) was priced at $695 on Friday, representing a mere 12% dip from its peak achieved in December. Conversely, Bitcoin (BTC) experienced a steeper decline of 15%, while heavyweight cryptocurrencies such as Solana (SOL) and others have all dropped by more than 20%.
The main reason behind BNB’s robustness is its relatively low association with Bitcoin and other digital currencies. As per the data from Blockchaincenter, the 90-day correlation coefficient of BNB with Bitcoin is 0.65, which is lower than many prominent cryptocurrencies.
The cost of BNB can be affected significantly due to its regular quarterly token destruction, a process that reduces the number of tokens available for trade. Binance implements two methods for this token burning: continuous and quarterly burns.
In real time, some of the gas fees collected are automatically destroyed, or “burned,” for each block that’s mined. This burning mechanism has resulted in the destruction of over 171 million BNB tokens.
The burn rate for each three-month period is determined by the amount of blocks mined within that period. In the last quarter, a total of 1.63 million BNB tokens worth approximately $1.02 billion were destroyed. As per BNB Burn’s predictions, it is anticipated that an additional 1.55 million tokens will be burned in the next quarter, with an estimated value of around $1.09 billion.
In recent months, the Blockchain Service Cooperative (BSC) ecosystem has shown robust performance. To illustrate, the total value locked (TVL) within the ecosystem has increased by approximately 3% during the past 30 days, whereas Ethereum, Solana, and Tron have experienced a decline of over 8% in this timeframe.
In the past week, decentralized exchange platforms operating within the Binance Smart Chain (BSC) network have facilitated transactions valued at over $9.75 billion in total for various digital tokens.
BNB price chart point
Based on technical analysis, Binance Coin (BNB) appears to have more room for growth in the long run. The token consistently stays above its short-term and long-term average lines. Furthermore, both the Relative Strength Index and Moving Average Convergence Divergence (MACD), widely used momentum indicators, are trending upward, indicating a positive outlook.
The cryptocurrency Binance Coin (BNB) has developed a “cup and handle” chart pattern, a generally optimistic signal for continuation often used in technical analysis. This pattern is made up of two components: the cup and the handle. For BNB, the ‘cup’ was created between May 2021 and July 2022, while the ‘handle’ portion is ongoing as of now.
If the predicted pattern holds true, it’s possible that Binance Coin (BNB) might witness an uptick of more than 70% in its value, possibly reaching above $1,180 in the future.
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2025-01-10 19:54