BNB, the BNB Chain token, fell in the last 24 hours even after the blockchain burned 1.44 million BNB, worth around $1.63 billion, sending them to an inaccessible address and thus removing them from circulation.
The currency fluctuated between $1,122 and $1,154 during the period, eventually falling to $1,137.
The recent burn is part of BNB Chain’s 33rd quarterly drawdown, which aims to fuel long-term scarcity by eventually reducing the total supply to 100 million tokens. After the latest burn, around 137.7 million BNB remain in circulation.
The burning process “underscores the structural strength of the asset and its long-term scarcity and therefore value creation,” said David Namdar, CEO of the largest publicly traded BNB treasury firm, CEA Industries.
Despite the magnitude of the flaring and a short-term spike right after it occurred, traders have been cautious. As many as 100,000 BNB changed hands in an hour over the past day, but that surge in volume failed to push the token above the $1,147 resistance level, according to CoinDesk Research’s technical analysis data model.
A previous drop to $1,122 maintained support, suggesting buyers are stepping in at lower levels, although bullish momentum remains weak.
Traders face a mixed picture. On the one hand, deflationary mechanics could eventually restrict supply and cause prices to rise if demand grows. On the other hand, the technical charts show that the price is stuck in a tight range, with persistent resistance.
