Binance Coin price has been in a strong bullish trend this year, and recently jumped to a record high of $900.3. BNB was trading at $875 on Monday morning, up by 72% from its lowest level in March. This article highlights some of the top reasons the BNB price has more room to go.
Binance Coin to benefit from token burns
One of the top catalysts for Binance Coin is that it is one of the most deflationary tokens in the crypto industry. Data shows that its circulating supply has been in a downward trajectory in the past few years.
BNB executes two types of burns. The first one is a real-time burn that incinerates tokens from its network fees. Data shows that this burning mechanism burned 313 BNB tokens worth $274,200 in the last 7 days. It has burned tokens worth over $234 million over time.
BNB has another burning mechanism that takes into account the blocks that are produced every quarter. This mechanism burns tokens worth over $1 billion each quarter.
The end goal is to reduce the BNB tokens in circulation from nearly 140 million to 100 million. Token burns help to reduce inflation, and in theory, can make it more valuable.
BNB is good for income investors
Another bullish catalyst for the BNB price is that it is a suitable investment option for income investors due to its high staking yield. BNB yields about 3.4%, higher than most popular income funds in the United States.
In BSC, validators normally stake a minimum of 10,000 BNB tokens, while delegators stake a smaller amount to support validators. The rewards normally come from the network validation fees.
Therefore, the high staking yield can provide you with regular income, which will offset the decline in the token price.
BSC has a strong ecosystem growth
The other main catalyst for the BNB price is that it is supported by a strong ecosystem growth. Data shows that the BSC network has over 1,000 dApps in its ecosystem and a total value locked (TVL) of over $11.5 billion. It also has over $20 billion in bridged TVL, while its stablecoin market cap has jumped to nearly $12 billion.
More numbers show that it is one of the top three chains in the decentralized exchange (DEX) industry. Its network processed transactions worth over $2 billion in the last 24 hours, with most of it coming from PanckeSwap. These numbers show that BSC has a strong utility that will support its performance.
BNB price has strong technicals
The other most notable catalyst for the Binance Coin price is that it has strong technicals that will push it higher over time. The chart above shows that it has remained above the 50-day and 100-day moving averages.
BNB price has also formed the highly bullish cup-and-handle pattern. This pattern comprises of a rounded bottom and the handle section. In this case, the cup has a depth of about 35%. Measuring the same distance from the cup’s upper side gives the target price at $1,100.
BNB price chart | Source: TradingView
Other bullish catalysts for Binance Coin
BNB price has more bullish catalysts that will keep pushing it higher in the long term. For example, VanEck has applied for a spot BNB ETF, which may be approved later this year. Such a fund will likely bring substantial inflows to the token.
The other major bullish catalyst for the BNB price is the rise in Binance Coin treasury companies like Windtree Therapeutics, CEA Industries, and Liminatus Pharma. These firms, which imitate Strategy, will trigger more demand for BNB tokens.
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