Binance coin BNB has been one of the best performing cryptos in the last quarter. But just in case you are not yet invested in this crypto, then this could be a perfect time for you to get in. That’s because Binance is about to do a coin burn. Binance usually does the coin burn every quarter, and the last burn was done on around January the 15th.
That’s why it is easy to predict that Binance coin will be doing a coin burn at around that date this month. Trading volumes are already on the rise, indicating that money is flowing into Binance coin, as investors look to take advantage of the coin burn. In the last four days, Binance trading volumes have shot up from around $87 million to around $129 million at the moment.
So why is the coin burn so important, and why is Binance coin (BNB) a good investment at the moment. Well, the coin burn is basically a distribution of value to everyone holding Binance coin. It’s Binance’s way of redistributing profits to all Binance holders. That’s why investors are interested in this coin, in anticipation of getting a share of the profits. Naturally, this is creating a buying pressure around Binance coin, pushing up the price higher prior to the burn. Capitalizing on this buying pressure can give you a good return, on top of the share of profits that you will get after the coin burn.
On top of that, by continually burning coins, Binance is cutting on supply relative to the long-term demand of this coin. In economics, price always moves up, when demand outstrips supply. In the case of Binance coin, investors are anticipating a price hike in the long-run, given that the supply of this coin is declining over time. Just to give you context, the first burn took out 986,000 coins from the market followed by a further 1.8 million coins in January.
At this rate, the next burn will probably be around 2 million coins. You can get an idea of how quickly Binance is taking coins off the market, and the impact that this will have on its long-term value. By investing in Binance coin now, you get to enjoy the continued value growth as this supply declines.
But it’s not just the coin burn that should trigger you to invest in Binance coin (BNB). Binance also recently announced that they will be launching a decentralized exchange, and new assets on this exchange will be powered by Binance coin, and it’s a powerful anchor to this coin’s value.
Without being overly ambitious, Binance coin could easily hit $20 immediately after the coin burn. Binance Coin BNB is already a strong coin, and the coin burn that is coming at a time when the entire crypto market is on a rebound. The potential reward is exceptional.
