Evaluation Of The Impact Of BEP-95 Burning Mechanism On BNB
Typically, cryptocurrency projects periodically burn coins as a deflationary mechanism to reduce the total coin supply and increase the price. The supply of BNB, the coin that powers the BNB Chain ecosystem, is initially controlled through quarterly BNB burning with the BEP-95 mechanism, based on trading volume on the Binance exchange.
Binance has announced the new automatic BEP-95 burn mechanism that will help burn faster. This mechanism destroys part of the BNB used to pay for transactions on the BNB Chain. Now, the question is how will the BNB price react to the auto-burn amid the overall downturn of the crypto market this year?
Since the implementation of the BEP-95 burning mechanism, $22,932,378.62 in BNB has been destroyed. While bears have taken over the market since the beginning of the year, the price of BNB has yet to see any positive effects from the BEP-95 burn mechanism.
At the beginning of the year, the coin was priced at $512. Currently, BNB is trading 56% lower at $223 and roughly the same as February 2021. Accordingly, its market capitalization dropped from $85.35 billion in January to $36.4 billion at press time.
According to data from Santiment, over the period under review, the number of BNB trading addresses steadily decreased along with the price.
Over the past 192 days, the number of daily active addresses trading BNB is down 94%. Similarly, after trading volume hit a high of 1.98 million on April 19, it dropped 99%. In USD terms, this number drops from 831.65 million to 3 million dollars.
Furthermore, during the period under review, the percentage of BNB supply held by whales was 19% lower.
Interestingly, since the beginning of the year, investors have remained optimistic regardless of the price drop, as the average age of the coin maintains an upward move. This signals an accumulation trend across the network.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Harold
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Evaluation Of The Impact Of BEP-95 Burning Mechanism On BNB
Typically, cryptocurrency projects periodically burn coins as a deflationary mechanism to reduce the total coin supply and increase the price. The supply of BNB, the coin that powers the BNB Chain ecosystem, is initially controlled through quarterly BNB burning with the BEP-95 mechanism, based on trading volume on the Binance exchange.
Binance has announced the new automatic BEP-95 burn mechanism that will help burn faster. This mechanism destroys part of the BNB used to pay for transactions on the BNB Chain. Now, the question is how will the BNB price react to the auto-burn amid the overall downturn of the crypto market this year?
Since the implementation of the BEP-95 burning mechanism, $22,932,378.62 in BNB has been destroyed. While bears have taken over the market since the beginning of the year, the price of BNB has yet to see any positive effects from the BEP-95 burn mechanism.
At the beginning of the year, the coin was priced at $512. Currently, BNB is trading 56% lower at $223 and roughly the same as February 2021. Accordingly, its market capitalization dropped from $85.35 billion in January to $36.4 billion at press time.
According to data from Santiment, over the period under review, the number of BNB trading addresses steadily decreased along with the price.
Over the past 192 days, the number of daily active addresses trading BNB is down 94%. Similarly, after trading volume hit a high of 1.98 million on April 19, it dropped 99%. In USD terms, this number drops from 831.65 million to 3 million dollars.
Furthermore, during the period under review, the percentage of BNB supply held by whales was 19% lower.
Interestingly, since the beginning of the year, investors have remained optimistic regardless of the price drop, as the average age of the coin maintains an upward move. This signals an accumulation trend across the network.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Harold
CoinCu News
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