BNB burned $1B worth of tokens, reducing total supply by over 30%.
Record $170B DEX volume in June boosted on-chain demand for BNB.
Key price levels: $660 support, $700 resistance, $800 bullish target.
The $1 billion token burn lit a serious fire under Binance Chain, and traders jumped in fast. But this price surge didn’t rely solely on the supply cut. Something deeper is driving momentum. While everyone watched the burn announcement, BNB’s on-chain demand quietly exploded. Now, with record-breaking DEX volumes and a rising price chart, the question becomes urgent: Can BNB keep climbing, or will it hit resistance and stall?
https://twitter.com/CryptoAmb/status/1943922058414502324 Token Burning Alone Doesn’t Move the Needle Anymore
BNB Chain burned 1.59 million BNB tokens in July, removing over $1 billion worth from the total supply. This was the network’s 32nd quarterly burn under its disinflation plan. Since launching the burn mechanism in 2022, over 60.7 million tokens have been destroyed, shrinking supply by more than 30%. Only 139.2 million BNB now circulates in the market. That’s a massive supply reduction, and it should, in theory, create upward pressure on price—if demand stays constant or increases.
Early on, price movement followed that logic. When burn totals crossed $1 billion for the first time in early 2024, BNB doubled in value, soaring from $300 to $600. But the trend hasn’t always held. The most recent July burn was larger than January’s $916 million event. However, BNB only climbed 15% from its June lows, suggesting the price no longer reacts as strongly to burn size alone.
DEX Activity Emerges as the Real Catalyst
So, what changed? The real driver now appears to be on-chain demand. Data from DeFiLlama shows BNB Chain’s decentralized exchange (DEX) volume hit a record $170 billion in June. That level of activity brings real utility to the network, as users need BNB for transaction fees and participation. This demand surge has played a major role in lifting the token price. At press time, BNB traded at $692, and many investors believe that number could still go higher.
However, the derivatives market sends a more cautious signal. Options traders aren’t fully convinced the rally will continue without resistance. There’s strong interest in short-dated put options, meaning many expect potential downside in the near term. The largest volume of puts centers around the $700 level, highlighting it as a key resistance. If BNB breaks through, the next bullish target sits at $800, where call volume stacks up. On the flip side, $660 has become a critical support level, offering a cushion if prices dip.
Overall, BNB’s disinflation plan still adds long-term value, but utility and usage now lead the charge. With DEX volume at all-time highs, BNB isn’t just riding tokenomics—it’s proving real demand matters more. As traders watch $660, $700, and $800, these levels may define BNB’s short-term future. If network activity keeps rising, BNB’s next move could surprise everyone.
