BNB Surges on $1B Burn and DEX Boom

Andrew Chen
Binance

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Key Takeaways:

  • Reduced supply, but impact on price is fading.
  • DEX volumes hit all-time highs, driving real demand.
  • $700 and $800 key upside targets; $660 is critical support.

Binance Coin (BNB) is climbing the charts again—this time, following a massive $1 billion token burn. But unlike past rallies, it’s not just the supply cut that’s powering this momentum. Soaring on-chain demand and record-breaking DEX volume are now playing a central role in BNB’s bullish outlook.

Token Burn Shrinks Supply, But Market Response Slows

In July, BNB Chain executed its 32nd quarterly token burn, eliminating 1.59 million BNB—worth over $1 billion. Since 2022, more than 60.7 million tokens have been burned, slashing total supply by over 30%. Only 139.2 million BNB now circulate in the market, strengthening the asset’s deflationary appeal.

Historically, large burns have sparked strong price reactions. When burn totals first topped $1 billion in early 2024, BNB doubled from $300 to $600. However, July’s even bigger burn only pushed the price up by 15%, indicating the market may now require more than just reduced supply to rally.

Exploding DEX Volume Fuels Real Utility

The game changer? Real demand. BNB Chain’s decentralized exchange (DEX) activity has skyrocketed. According to DeFiLlama, BNB Chain posted a record $170 billion in DEX volume in June. This utility surge has boosted demand for BNB, as it’s required for transaction fees and network participation.

With BNB trading at $692 at press time, many analysts point to increased usage, not just deflationary pressure, as the true growth driver. Rising DEX volumes signal a healthy and active ecosystem—key for sustainable price growth.

Resistance at $700, But Derivatives Point to Volatility

Despite bullish momentum, not all traders are convinced. In the derivatives market, options activity reveals cautious sentiment. A spike in short-term put options suggests traders expect resistance around the $700 level. If BNB breaks above, the next target is $800—where call volume builds. Conversely, support has formed around $660, offering a buffer if prices dip.

Also Read: $31B in Stablecoins on Binance Sparks Altseason Hype as Bitcoin Exits Exchanges

These levels—$660, $700, and $800—could determine BNB’s near-term trajectory, especially as traders assess whether demand can outpace profit-taking.

BNB’s supply burn still matters, but it no longer guarantees explosive rallies. Instead, rising network activity and DEX usage are now the primary catalysts. If this trend continues, and BNB breaks through $700 resistance, a push toward $800 may be just the beginning.

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.

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