Binance coin price remained steady above $700, with the unique chart pattern indicating further gains, potentially reaching $1,155 in the near term.

Binance Coin (BNB Bank) was trading at $707 on January 1, a few points below the December high of $794 and 200% above the 2024 low.

BNB faces three major catalysts that could push it much higher in the first quarter of this year.

First, the network has continued to burn its tokens, a move that is expected to reduce its outstanding tokens to 100 million from 144 million over time. according to Burn BNBThe network is expected to finish burning 1.63 million tokens worth $1.01 billion soon. It will then burn another 1.5 million BNB tokens worth $1.089 billion in the first quarter.

On top of quarterly automatic burns, the network burns more tokens each day from gas fees generated. This approach has resulted in the burning of 246,950 coins worth more than $175 million since its inception a few years ago.

These burns will create more value for BNB's price over time by making its tokens rarer and increasing the amounts investors receive. Binance coin Staking yield has decreased From 12% in November to 2.3%, the betting percentage rose slightly to 20.32%.

Second, the Binance Smart Chain ecosystem is performing relatively well even with high competition in the industry. It has more than 905,640 active addresses, a The total value is closed With a value of over $5.5 billion and stablecoins worth $6.86 billion.

BNB Chain's DEX protocols have continued to perform well. The volume processed by its protocols rose 10% in the past seven days to more than $13.42 billion. This has brought the total volume since inception to $1.16 trillion, making it the second largest player after Ethereum (Ethereum), which handled more than $3.4 trillion.

BNB price is technically strong

Third, Binance Coin has some strong technicals that could push it much higher in the long term. The weekly chart shows that BNB price is slowly forming a cup and handle chart pattern, which is a common sign of continuation.

The cup section formed between 2021 and June 2024, while the handle area formed between June and November. We find that the depth of the cup is about 74%. By measuring the same distance from the top side of the cup, the target price for BNB is $1,155, which is about 63% above the current level.