The Binance Coin (BNB), the native token of the BSC network, was trading at $655 on Nov. 29. It has climbed 223% from its 2023 low and 9% in November, yet underperformed many major cryptocurrencies.
BNB has strong fundamentals. The BSC ecosystem has been doing well. In the past 30 days, the total value locked in its DeFi ecosystem increased by 18% to $5.53 billion. Also, the trading volume of cryptocurrencies on its DEX protocols like PancakeSwap (CAKE) and Uniswap rose to over $34 billion in the same period, with PancakeSwap contributing nearly $30 billion.
Moreover, the network has been reducing coin circulation through burning. Over the last seven days, 652 coins worth $429,000 were burned. In total, it has eliminated coins worth $160 million to cut the total supply from 144 million to 100 million to control inflation.
The staking yield has reached 12.5% due to the ongoing burn and rising network revenue. A $100,000 investment in BNB could yield about $12,500 annually.
Technically, BNB’s weekly chart shows potential for more gains. Since October 2021, it has formed a cup and handle pattern with resistance at $665. Based on this pattern, if it breaks out, the coin could rise to $1,130. But it must surpass key levels like $875 (the extreme overshoot of the Murrey Math Lines) and the psychological level at $1,000. The invalidation point for this outlook is $437, which is the bottom of the trading range according to the Murrey Math Lines tool.
