BNB’s Billion Dollar Burn: A Comedy of Errors and Gains

by

Key takeaways

  • BNB chain has incinerated 1.59 million tokens, a staggering 30% of the supply since 2022. But will this pyrotechnic display propel BNB to the dizzying heights of $800? 🚀🔥

The BNB chain, in a spectacle reminiscent of a Roman emperor’s feast, has burned 1,595,599.78 Binance [BNB] tokens, worth a cool $1 billion, as part of its quarterly disinflation program. 🎉

This, the 32nd burn, has seen over 60.7 million tokens (approximately $14.2 billion) removed from circulation. Since the deflation plan began in 2022, a third of the supply has been consigned to the flames, leaving a mere 139,289,513 million tokens in circulation. 🗑️🔥

BNB price doubled, BUT not because of the burns?

Theoretically, reducing supply while demand remains constant or surges should inflate the value of the token. However, in the world of crypto, theory often meets a rather stubborn reality. 🤷‍♂️

To understand the impact of these quarterly burns on BNB’s price, AMBCrypto layered the disinflation data over the token’s price to paint a clearer picture. 🎨

As the data illustrates, BNB’s price fluctuated below $400 in 2022 when the burn rates were modest, below $600 million. However, when the burn rates hit over $1 billion for the first time in early 2024, the BNB price doubled from $300 to $600. 📈

But, alas, this pattern did not hold. Despite multiple billion-dollar burns since then, BNB’s price did not rally proportionally. For instance, the most recent burn of $1.02 billion in July 2025, larger than January’s $916 million, saw only a muted price gain. 🤔

So, where is the new demand coming from?

According to DeFiLlama data, BNB chain DEX volume saw a significant surge from late 2024 to 2025. In fact, it hit a record high of $170 billion in June, adding pressure for on-chain users. 🚀

This on-chain traction could have fueled BNB’s price action, in addition to the supply reduction. At press time, BNB traded at $692, up 15% from the June lows. 📈

However, the derivatives market told a more cautious story. The Options market was somewhat bearish in the short term, with high demand for short-dated puts (bearish bets) over calls (bullish bets). 🐻

Meanwhile, the largest Option volumes of puts (red, long bar) were piled at $700, suggesting it was a key resistance level. Another level for downside risk was at $660, making it a key short-term level to watch. 📉

Beyond $700, the highest volume of calls was at $800, making it a key bullish target if the $700 obstacle is cleared. 📈

Overall, BNB chain’s disinflation program, coupled with its on-chain activity, has positively impacted BNB’s price. The $660, $700, and $800 levels are key to watch in the near term. 🕵️‍♂️

Read More

2025-07-12 09:46