The total crypto market cap added almost $210 billion earlier today after major cryptocurrencies erased Sunday losses
Cryptocurrencies are in a sea of green on Monday, erasing all of their losses recorded during the Sunday crash.
Bitcoin (BTC) soared to an intraday high of $38,800 on the Bitstamp exchange earlier today.
All major altcoins have also posted double-digit gains. Binance Coin (BNB) is leading the relief rally with a 31 percent spike.
Ethereum (ETH), Cardano (ADA) and XRP are all up over 20 percent, causing a slight dip in Bitcoin’s dominance.
The total cryptocurrency market cap added $208 billion earlier today. However, it is still down over $1 trillion from its May 12 peak of $2.58 trillion following a brutal rout.
Binance proposes a real-time token burning mechanism to boost BNB value
- Binance has proposed the BEP-95 aimed to burn a percentage of transaction fees as a deflationary measure.
- BEP-95 will occur alongside the quarterly token burn and well after the 100 million token supply is achieved.
Binance Smart Chain (BSC) is taking further steps to incorporate an additional deflationary mechanism to increase token valuation. As announced today, Binance (BNB) is introducing a new Binance Evolution Protocol (BEP) known as BEP-95. The BEP stands out from the network’s occasional token burns since it introduced a real-time burning mechanism.
According to Binance, a fixed portion of gas fees collected by validators in each block will be sent to the burn address. The ratio initially set at 10 percent, is adjustable according to changes proposed by the Binance community. BSC validators get to vote on community proposals, where voting power is based on staked BNB.
For a proposal to be reviewed by the validators, it has to receive a minimum deposit of 2,000 BNB (mainnet). All BNB is returned to holders after the finalization of the voting process. A proposal that wins is that which gathers 50 percent of the total voting power on the mainnet. Binance notes that voted-upon parameters are implemented immediately.
Details of Binance BEP-95 token burning mechanism
BEP-95 became relevant as it speeds up the BNB token burn, and makes the network increasingly decentralized. The BNB supply cap is about 168 million tokens and Binance intends to burn until 100 million tokens remain in circulation. This will take about 5-8 years to complete, according to Binance. The network’s most recent quarterly burn wiped out over 1 million tokens, worth about $639 million, from circulation.
However, the latest update from its blog now says the BEP-95 burn “will continue functioning” even after the above target is attained. With the burn, Binance expects the intrinsic value of the BNB token to increase in tandem with demand. The network notes that validators and delegators may receive fewer tokens from staking, but the “fiat-denominated value of their rewards may increase.” Moreover, BNB has multiple use cases that benefit all holders of the token.
Currently, BEP-95 is in the draft stage and the network is yet to give a specific date for its implementation.
Several blockchains use the crypto-burning mechanism to create token scarcity and a subsequent increase in token value. Ethereum, for instance, uses the EIP-1559 for this purpose.
BNB price action
BNB, the fourth-largest cryptocurrency by market cap, was trading at $494 at press time, according to our data. The token has gained 0.8 percent in the day, and 4.8 percent week-over-week. Similar to other digital assets, BNB has rallied fueled by the Bitcoin-led gains. Crypto investor and YouTuber Lark Davis expects “good things” for the BNB price following its launch of a $1B growth fund.
Binance Destroys $639 Million Worth of BNB
Binance’s burning a record $639 million worth of BNB has failed to push the price significantly higher
Leading cryptocurrency exchange Binance has announced the completion of its 17th quarterly burn.
The company destroyed more than 1.3 million BNB tokens that were cumulatively worth roughly $639 million.
This marks Binance’s biggest quarterly burn to date in dollar terms.
“Burning” is the process of shrinking the token’s circulating supply. Binance is on track to destroy 50% of all BNB tokens every quarter.
The number of tokens that are destroyed each quarter is calculated based on the trading volume on Binance’s crypto-to-crypto exchange.
As reported by U.Today, Binance burned $393 million worth of BNB in the second quarter and $595 million in the first quarter of 2021.
The BNB price added a meager 1.2% after the burn was announced before quickly trimming even such modest gains.
Last week, BNB recorded a double-digit price spike after announcing a $1 billion growth fund.
Binance (BNB) Price Analysis: On-chain Data Shows Rise In Demand for the BNB Coin, Will BNB Outperform BTC?
Why Is Binance Coin (BNB) Price Surging? Among many reasons recent 1 billion USD fund for project development of DApps on the Binance Smart Chain [BSC] is one major catalyst fueling the BNB price.
The crypto data tracking service, Santiment spotted an increase in demand for BNB on wallets with BNB whales acquiring roughly 412K BNB in recent weeks. The move shows that big money remains bullish on the BNB coin in the face of regulations.
The BNB burn protocol is another interesting bullish catalyst for the BNB token price as the bulls hold on to their positions in wait for this event.
A dive into the price chart should also give us further insights into significant patterns and technical drivers of the BNB price.
Binance (BNB) Weekly Chart Analysis
Both bearish and bullish divergence price vs. oscillator patterns keeps the BNB price hovering within the $680 resistance and $211.70 support.
The recent bear trap candlestick pattern on 20 September prepares a bullish tone for a price increase beyond the $509.90 resistance and heading to the $680.00 ATH.
The RSI  couldn’t reach level-25, which therefore represents a bullish outlook for the BNB price.
A breakout above the $680 resistance could see the BNB price rising into four-figure price zones for the first time.
Binance (BNB) Daily Chart Analysis
Following a collapse of hidden bullish divergence trend lines on 07 September ‘21, the BNBUSDT price slumped by roughly 23%, then quickly reversed to the upside by an opposing regular bullish divergence on 28 September ’21.
The bulls have re-established control as the RSI enters the overbought area for the second time at press time.
Meanwhile, an impending bearish divergence setup is projected around the $518.90 resistance. On the other hand, a surge in bullish momentum may see the RSI shooting beyond the 85-level, therefore, nullifying the anticipated reversal pattern.
Binance (BNB) 4HR Chart Analysis
The 4HR time frame follows a similar price dynamics as the daily time frame with an opposing regular bullish divergence on 12 October ’21 at 08:00. This led to a parabolic upswing for the BNB price and soaring above the 07 October 12:00 resistance [$446.60].
Raging bulls could use the old $446.60 resistance as new support, which is a possible upward scenario for the BNB price. A prolonged correction phase could see the price dropping to the $424.00 support.
Binance (BNB) Intraday Levels
- Spot rate: 468.4
- Mid–Term Trend [H4]: Strong Bullish
- Volatility: High
- Support: $392.20, $424.0, and $446.60
- Resistance: $473.0 and $518.90