Binance coin price has been rising since 16th April and the bullish trend seems to be gaining momentum by the day.
At the time of writing, BNB is trading at $420.39 up 3.94% in the last 24 hours. It has hit a daily high of $424.27 and a daily low of $403.95.
Let us now look at what is causing the current Binance coin price surge.
Why is Binance Coin price rising?
Several reasons have been attributed to the uptrend which includes; Binance to continue burning BNB, Q1 massive burn, and Gulf Energy Development creating a joint venture with Binance.
Binance to continue to burning BNB
Today, April 19, the BNB price has continued to rally over the growing optimism that Binance, the largest crypto exchange in the world, will continue supporting the token price. Besides, the Binance chain had promised to maintain its BNB burning.
According to Binance CEO, Changpeng Zhao, they have already met the first quarter goal by burning $772.3 million worth of BNB tokens.
Q1 massive burn
During 2022 Q1, a total of 1.8 million BNB tokens were burnt worth $741.8 million at a rate of $403 per token.
In Q2 burn, over 1.8 million Binance coins worth $769.4 million are expected to be sent to a dead wallet. The burn price is expected to be $424 per token.
In the past week, more than 2,600 BNB tokens worth $1.1 million have already been burned.
Cumulatively, a total of 35.3 million BNB tokens have been sent to a dead wallet so far.
This process has been made possible since BNB is integrated with an auto-burn feature that limits the supply of tokens to 100 million to provide predictability and transparency to the community.
Gulf Energy Development to create a joint venture with Binance
One of Thailand’s largest private power producers, Gulf Energy Development, is creating a joint venture with the Binance platform to enter the digital asset exchange business.
According to the reports, the venture will be a 51-49 partnership, besides, Gulf has invested a 0.4% stake in Binance US worth $20 million.
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