The price of Binance Coin remained stable above $700 as a unique chart pattern pointed to further gains that could potentially rise to $1,155 in the near term.
Binance Coin (BNB) traded at $707 on January 1, a few points below its December high of $794 and 200% above its 2024 low.
BNB coin is facing three major catalysts that could push it significantly higher in the first quarter of this year.
First, the network has continued to burn its tokens, a move that is expected to reduce outstanding coins from 144 million to 100 million over time. According to BNB Burn, the network is expected to soon complete a 1.63 million token burn worth $1.01 billion. An additional 1.5 million BNB coins worth $1.089 billion will then be burned in the first quarter.
In addition to these quarterly autoburns, the network burns additional tokens every day from the gas fees generated. This approach has burned 246,950 coins worth over $175 million since its inception a few years ago.
These burns will create greater value for the BNB price over time by making their tokens rarer and increasing the amounts investors receive. Binance Coin’s staking return fell to 2.3% from 12% in November as the staking rate increased slightly to 20.32%.
Second, the Binance Smart Chain ecosystem is doing relatively well despite increasing competition in the industry. It has more than 905,640 active addresses, a total value of over $5.5 billion, and $6.86 billion worth of stablecoins.
BNB Chain’s DEX protocols have continued to perform well. The volume processed by its protocols increased 10% over the past seven days to over $13.42 billion. That brought the total since inception to $1.16…
