Binance Coin price has rebounded from its lowest level this week, supported by ongoing trends in the non-fungible token and decentralized finance industries.
Binance Coin (BNB) rose to $580 on February 6, gaining about 17% from Monday’s low. CryptoSlam data shows that the network’s non-fungible token sales are increasing, adding more utility to BNB.
Non-fungible token sales climbed 24% in the last seven days to $1.5 billion, while the number of buyers in the network jumped 20% to nearly 24,000. In contrast, Ethereum non-fungible token sales dropped by 40%, while Solana and Bitcoin fell by 32% and 71%, respectively.
The Binance Smart Chain network is also seeing strong performance in the decentralized exchange sector. Data from DeFi Llama shows that transactions on the blockchain reached $2.4 billion in the past 24 hours. The volume increased by 20% in the last seven days, with PancakeSwap, THENA, and Uniswap emerging as the top performers.
The BSM network’s monthly fees have stabilized in recent months. It generated $13.3 million in January after collecting $17.7 million in December.
Another potential catalyst for the Binance Coin price is its growing burn rate. The real-time burn mechanism incinerated 477 coins worth $279,645 in the past seven days, bringing the cumulative total to 249,478 coins.
Further data shows that the BNB network recently burned 1.63 million coins valued at over $1 billion. The network is set to burn an additional 1.56 million tokens worth $1.08 billion in the coming months. Its long-term goal is to reduce the total supply from over 144 million to 100 million.
BNB price technical analysis
The weekly chart shows that Binance Coin has pulled back in recent weeks. It has declined for four consecutive weeks as sentiment in the crypto industry worsened.
BNB coin has formed a cup and handle pattern, a popular bullish continuation sign. The upper side of the cup is at $692, while the recent consolidation is part of the handle section.
Binance Coin has formed a hammer candlestick that comprised of a small body and a long lower shadow. It has also remained above the 50-week moving average.
Therefore, Binance Coin is likely to experience a bullish breakout in the coming months. The first resistance level to watch is $793, the highest swing in December. A move above this level could signal further gains toward $1,000.
