Binance has successfully completed the v1.1.5 update on its blockchain, Binance Smart Chain (BSC). The update means that a firing mechanism has been implemented to reduce the circulating supply of Binance Coin (BNB).
The update on the BSC is similar to the one on Ethereum which took the ETH to a new historical high after about 45 days after implementation.
In the case of the BSC, the BEP-95, a protocol that burns 10% of the fees charged by each validator, is already active.
According to the Bscscan data, the actual BNB burnt per block is set to 0.02-0.06. The burn rate is determined by node voting and is currently set at 10%.
Based on estimates, the daily burn volume is between 577 to 1,728 BNB tokens. A reduction in the current supply of BNB would cause a shortage of altcoin, possibly raising its price.
As mentioned, the mechanism adopted by the BNB is similar to the EIP-1559 of the ETH Network.
In the case of ETH, since the implementation of the proposed improvement in the hard fork London, more than 1 million tokens have been burned, generating an increase in the price of ETH. In addition, the hard fork increased the full node sync speed by 60%.
The BNB price posted gains of 6% last week and, at the time of writing, is costing around $645.
Cryptocurrency analysts on YouTube channel “Crypto TD” are bullish on BNB. They believe that everything indicates that the BNB will surpass its historical record and reach US$766.
“It is quite likely that the BNB has convincingly escaped the resistance upwards. And BNB’s next target would be 1.618 Fib from the current consolidation. With that, you will get an approximate target of US$766”, they affirmed.