BNB, the symbol for the BNB Chain, fell in the last 24 hours, even after the blockchain burned 1.44 million BNB, worth about $1.63 billion, by sending them to an inaccessible address, thus removing them from circulation.
The coin fluctuated between $1,122 and $1,154 during the period, ultimately falling to $1,137.
The recent burn is part of BNB Chain’s 33rd quarterly reduction aimed at creating long-term scarcity by eventually shrinking the total supply to 100 million tokens. After the latest burn, there are still around 137.7 million BNB in circulation.
The burning process “underscores the asset’s structural strength and long-term scarcity and therefore value creation,” said David Namdar, CEO of the largest listed BNB treasury firm, CEA Industries.
Despite the scale of the burn and a short-term rally just after it happened, traders have been cautious. As much as 100,000 BNB changed hands in an hour over the past 24 hours, but this spike in volume failed to see the token top the $1,147 resistance level, according to CoinDesk Research’s technical analysis data model.
An earlier drop to $1,122 saw support hold, suggesting buyers are entering at lower levels, although upside momentum remains weak.
Traders face a mixed view. On the one hand, deflationary mechanics can ultimately tighten supply and see a price lift if demand grows. On the other hand, technical charts show that the price is stuck in a narrow range where the resistance is proving to be stubborn.
