Binance Coin price seems ripe for a strong bullish breakout as the network continues to incinerate more coins.
Binance Coin (BNB) was trading at $620 on Tuesday, up 20% from its March lows and 22% below its all-time high.
BNB has outperformed Bitcoin (BTC) and other layer-1 coins like Cardano (ADA) and Solana (SOL) because of its strong ecosystem growth.
DeFi Llama data shows that the total value locked in its ecosystem rose to $5.17 billion in March. In contrast, other popular layer-1 networks lost assets during the same period. Additional data shows that the network’s decentralized exchanges handled over $43 billion in volume in March.
BNB has also outpaced most altcoins due to its highly deflationary nature. The token achieves this through two types of burns that reduce the circulating supply.
It has a real-time burn mechanism, which incinerates a fixed ratio of gas fees generated by the network. This method removed 939 BNB worth $577,838 in the past seven days. Altogether, it has burned nearly $160 million worth of coins.
BSC also carries out a quarterly auto-burn based on the number of blocks produced each quarter. This mechanism burned 1.57 million BNB worth $1.01 billion in the first quarter. The burn will be executed in the next few months.
BSC aims to reduce the number of BNB coins in circulation from 142 million to 100 million.
BNB price also gained momentum after developers implemented the Pascal hard fork, which improved its integration with Ethereum. The network is set to introduce another hard fork this month and in June to enhance transaction speeds.
BNB price analysis
The most bullish case for BNB lies in its strong technical setup. The weekly chart shows that the coin has formed an ascending channel over the past few months. This channel is forming the handle section of a cup and handle pattern, a popular bullish continuation signal.
Binance Coin has also remained above the 50-week moving average, which is another positive indicator. Therefore, BNB is likely to continue rising as bulls target the key resistance level at $790, its highest swing in December, representing a 28% gain from current levels. This outlook will be confirmed if the price breaks above the key resistance at $662.
