Binance, one of the leading cryptocurrency exchanges, recently announced its quarterly BNB completed its burn, burning an astonishing amount of tokens. The exchange announced that this time, a total of 1.99 million BNB, equivalent to about $480 million, was burned. This brings the total coins burned by the major exchange since the inception of the token burn to an impressive 48.14 million BNB, which is worth over $11.6 billion at the current price.
However, the BNB price had a weak reaction to this news, despite the tokens being withdrawn from circulation significantly. To be clear, the price is currently bordering dangerously. However, it is trading at $241 per coin. This price level is critical as it represents a crucial support zone. Beyond this area, there is a gap down to $50 per BNB.
Binance Coin’s lackluster performance raises concerns. For example, when news broke about XRP and its legal status, Cardano (ADA), which also has issues with the SEC, witnessed a notable 20% increase, while BNB saw a 5% increase and then a 7% decrease.
There Are Also Negative Developments For BNB
SEC and Department of Justice legal action, significant internal layoffs, departure of senior management personnel, and Binance Recent events, such as problems with the US, have further intensified concerns.
If we accept the theory that market prices always reflect current information, the current price of BNB looks alarmingly unstable. With each passing day, BNB seems to be heading more towards 2021 lows rather than higher highs.
You can follow the current price action here.