One of the most fundamental laws of the economy is that the lower the supply of a good in relation to its demand, the higher the price. Binance Coin (BNB) is, apparently, one of those currencies in which one can invest comfortably, based on this principle and make a good amount of money.
This is due to the fact that the coins are "burned" or, rather, discarded each quarter, with the aim of reaching a total of 100 million tokens. This means that every ninety days, a significant portion of BNB is taken out of the market.
And it seems that the yield of the coins of Binance has been positively affected after the last two burnings. If this is the case, it would not be very difficult to argue that BNB could be placed in a range of US $ 39 - US $ 50 in the first half of 2018, being optimistic enough, of course.
The burning of October 2017
This was the first, at a time when the currency was trading in the range of US $ 1.4 - US $ 1.7. After this, the Binance price reached a maximum of US $ 10 in December, just before the second burn, which would take place in January 2018.
That was a clear indication that the event was quite effective to increase the value of BNB, despite being a relatively new currency at that time. A price movement of US $ 1 to US $ 10 in two months is not something that happens very often.
January 2018, the second
Immediately after the January 2018 burn, the BNB price soared exponentially to reach a maximum of US $ 24 within a few weeks. That was a monumental climb, which signaled the increasing value of this crypto, as its supply decreased.
In fact, the only apparent reason why this cryptocurrency had declined in value before that was due to the general decline of the market. This drop affected all currencies, regardless of the strength of each one, but, at the same time, presented a good opportunity for investors to stock up, in anticipation of what would be the third execution at the BNB stake.
April 2018
April 15 has just happened again. Binance indicates on its support page:
Binancial Fellows,
According to our whitepaper, we have completed the burning of 2,220,314 BNB (equivalent to US $ 33 million, approx.) For our third quarter.
Txid of burning
Total supply of BNB: 194,972,068
Thanks for your support!
The Binance Team
Taking into account the reaction of the market to the last two burnings, we can expect the value of BNB to experience a further increase. How much, it is something difficult to forecast accurately.
The number of coins in circulation has been significantly reduced after these three burnings, which brings us to the well-known law on supply and demand. A quick glance at the chart serves to verify that, indeed, the price of BNB has increased, although not immediately, after Binance executed each of the scheduled burnings.
Second, there is a greater market awareness of Binance Coin this time, than at any other time in its existence. Consequently, more people will seek to take advantage of this recent withdrawal of the crypts, and the result will be, again, an increase in prices, whose proportions remain to be seen.
If you are interested, then, the time to go out and buy a few BNBs can be now.
A bright future
Binance is promoting the adoption of the BNB token in hopes of boosting customer loyalty. The discounts, of course, are a nice benefit to use the currency within the platform to reduce trading rates.
As the dominant cryptocurrency exchange in the world, we can expect Binance's currency to circulate widely. The more your adoption grows, the more useful and valuable it becomes.
At this time, the primary value of BNB is within the exchange. However, in the future, BNB's value may grow as an asset. The first investors, have already seen a great return on the BNB token. It will be interesting to see if the token holders keep loosing them to get lower rates, or hoard them in the hope that good business results.
If Binance continues to maintain its current popularity levels, it will certainly implement more features and programs, where, most likely, BNB appears as a cast star.