Key Points
The price of Binance Coin (BNB) remained in a narrow range on Monday. This stability came even as BNB surpassed Ethereum (ETH) in a significant metric.
On Monday, Binance Coin (BNB) fell to $685. This was a 6.50% decrease from its weekend high during Donald Trump’s inauguration.
Data indicates that the daily volume on BNB Chain Decentralized Exchanges exceeded that of Ethereum (ETH) on Monday. According to DeFi Llama, these DEX networks processed over $5.7 billion in sales, outdoing Ethereum’s $5.05 billion.
BNB Chain’s Significant Volume Increase
This volume made BNB Chain the second-largest network in DEX volume after Solana. Solana handled $25.3 billion. The daily volume on BNB Chain marked its highest increase since March 2021.
PancakeSwap led the gains with over $5.24 billion in volume. It was followed by platforms like THENA, Uniswap, DODO, and Woofi.
Ethereum’s network has faced difficulties in recent months. More traders are migrating to layer-2 networks like Base, Arbitrum, and Optimism. For example, Base, launched by Coinbase in 2023, recorded a weekly volume of $14 billion. This was still trailing Ethereum’s $21 billion.
The next significant catalyst for BNB’s price will be its token burn. This is scheduled for the coming weeks. According to BNB Burn, the 30th autoburn will incinerate 1.64 million tokens. These are valued at over $1 billion.
The network burns over 1.5 million tokens quarterly. The burn amount is determined by BNB’s price and the number of blocks produced. The ultimate goal is to reduce the total BNB supply from 144 million to 100 million tokens.
The weekly chart shows that Binance Coin’s price has performed well over the past few years. It rose from $188 in 2022 to $690. It has consolidated near the upper side of the cup and handle pattern. This is a popular bullish indicator.
BNB has also moved above the 50-week and 100-week moving averages. Both of these are bullish signals. Additionally, the Relative Strength Index and MACD indicators have shown upward momentum.
As a result, the coin is likely to experience a strong bullish breakout in the coming months. Based on the cup and handle pattern, BNB could rise to cross the crucial resistance levels of $1,000 and $1,135.
