Home CryptoCurrency News Binance Coin Slides By 7% Even as Binance Makes $750M Profit

Binance Coin [BNB] Slides By 7% Even as Binance Makes $750M Profit

Binance Coin [BNB] has managed to secure its position as the third-largest crypto-asset by market cap after weeks of bullish moves. The subsequent dips right after establishing a new ATH did little help to stall the bears’ onslaught.

In short, the native token of the world’s largest crypto exchange, Binance, BNB has been one of the worst-performing assets among the top 10 in the leaderboard. It climbed an ATH of $600 before tumbling down closing with three subsequent red candles

Notably, its trading volume has noted a double-digit rise.

At the time of writing, the crypto-asset exchanged hands at $518 after recording depreciation of more than 7% over the past 24-hours. During the same time, BNB registered a market cap of $78.5 billion and a 24-hour trading volume of $6.54 billion.

Let’s look at what the technical indices have in store for the 3rd largest cryptocurrency.

Binance Coin [BNB] 24-hour Price Chart:

Binance Coin [BNB] Slides By 7% Even as Binance Makes $750M Profit

After weeks of diverging, that triggered the impressive price run, the Bollinger Bands faced hints of contraction. This trend depicted that the volatility in the BNB market has hit a tumble which in turn was indicative of a  lagging bullish momentum.

The MACD also demonstrated hints of a bearish crossover in the offing after remaining on the positive side of the histogram for nearly a fortnight. In short, the buying demand has taken a hit.

Relative Strength Index [RSI], bounced from the overbought zone depicting less room for further upward traction despite it was still above the 50-median line.

If the bulls fail to defend further, BNB is likely to test psychological support levels that could be damaging to its momentum.

BNB Burn

The latest plunge in price action coincided with the 15th quarterly BNB burn. This event is the highest one ever carried out of a whopping $600 million by the crypto exchange.

The astonishing figure could be attributed to the price of BNB surging over 16 times during the quarter, from a mere $35 all the way to $600. The event involved a burn of more than 1 million BNB tokens.

According to Sam Bankman-Fried, the Chief Executive Officer of FTX, the burn of $600-million could potentially equate to approximately $750 million in profit for Binance. His tweet read,

So, TL;DR, with a factor of ~1.5 or so uncertainty:

“Binance, Q1 2021: a) $1B rev, $750m profit –> $4B rev, $3B profit run-rate
b) Blended average fee rate ~0.016% on trades
c) They’re making it really clear that burn only goes until 100m tokens, but 60% of rev until then”

Alice P Jacobs
Alice P Jacobs
Alice is an experienced writer with a demonstrated history of working in the cryptocurrency and blockchain industry for more than two years. She also contributes towards providing macro data/event previews and reports and is involved in conducting Fundamental and Technical Analysis.
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