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Binance Coin (BNB), the native token of the BINANCE blockchain which was first launched as a utility token for trading on the exchange has soared to a new all-time high of $75.40 with a $26% surge over the past 24 hours. BNB is currently trading at $74.39 and looks bullish enough to retest the new ATH again.
Earlier today nearly $200 million worth of USDT flowed into the Binance exchange which many believed at first was because of Dogecoin traders as the meme coin got another shot out from Elon Musk today. However, looking at the surging price of BNB it seems most of the stablecoin inflow was traded for the native token.
Over $200M in USDT has been added to binance in the last 30 minutes or so
— Altcoin Psycho (@AltcoinPsycho) February 6, 2021
The 24 hours spot volume of BNB/USDT is currently at $538 million as the token continues to surge with over 69% gains in the past week.
BNB Burn and Rising Spot Volumes During Peak Season Behind BNB Bull Rally
Binance over the years has burnt a significant chunk of the BNB supply every quarter, the last being the 14th quarterly burn that commenced on 19th January this year. The decreasing supply for BNB, while the business is at its peak during the bull run, has also soared the demand for the native token.
Binance burned a total of 3,619,888 BNB, equivalent to USD 165,791,000 worth of tokens and the total supply of BNB has officially decreased from 174,152,713 BNB to 170,532,825 BNB.
During the peak Bitcoin bull run, Binance registered a whopping $8 billion in spot volume in a single day. While Binance has also faced a couple of outages owing to high volumes, however, compared to the likes of COINBASE and other crypto exchanges, Binance has managed to keep the platform up and running even at peak trading hours. The recent banking ban announced by Nigerian Central Bank might also lead to many Nigerian traders converting their native fiat into BNB to continue trading without any restrictions. This would also lead to a surge in demand for the BNB token in the coming days.