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- BNB supply drops to 20-month low, fueling scarcity.
- On-chain activity and spot accumulation remain strong.
- Technical indicators suggest caution, $883 is key support.
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Binance Coin (BNB) is showing signs of robust organic growth as circulating supply hits a 20-month low while on-chain activity and spot demand remain elevated. Analysts suggest this combination could fuel further gains, even as technical indicators hint at short-term retracement risks.
Circulating Supply Drops, Driving Scarcity
BNB’s circulating supply has fallen to 139.19 million tokens, the lowest since January 2023. The decline stems largely from Binance’s ongoing token burn program, which has removed 62.8 million BNB from circulation, averaging 1.5 million per quarter. This sustained burn exerts deflationary pressure, reducing selling supply and creating scarcity—a factor often linked to positive price movements when demand remains strong.
On-Chain Activity Signals Growing Engagement
Data from Dune shows active BNB users have risen 1.2% to a weekly average of 10.7 million, while chain transactions surged 13.6% over the past week, reaching 96.83 million. Simultaneous growth in user activity and transaction volume suggests strong engagement, signaling that the current price action is backed by genuine demand rather than speculative hype.
Spot Market Accumulation Remains Robust
Even after retracing from its recent all-time high (ATH) of $949 to a low of $911, BNB saw aggressive spot accumulation. Buy volume exceeded sell volume by 3.13k, and negative netflows from exchanges indicate investors are moving coins off platforms to hold. This behavior reinforces BNB’s appeal as a scarce, in-demand asset, supporting potential upside momentum.
Also Read: BNB Hits $907: Binance Coin Surges Ahead of Upcoming Q3 Token Burn
Technical indicators offer a mixed outlook. The Directional Movement Index (DMI) and Stochastic RSI show bearish signals, pointing to possible buyer exhaustion. Should this retracement deepen, analysts highlight $883 as a critical support level. If momentum stabilizes, however, BNB could reclaim $944 and attempt another rally toward new highs.
BNB’s combination of shrinking supply, elevated on-chain activity, and strong spot demand underscores its resilience. While short-term retracements are possible, the underlying fundamentals suggest continued accumulation and potential for future price gains.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
