- BinaryX intended to strengthen its tokenomics with a proposed plan to slash its maximum supply by 74%.
- If passed, the move may have a positive impact on investor attraction and price.
As a seasoned cryptocurrency analyst with over a decade of experience in the digital asset industry, I have witnessed numerous projects adopt token burn mechanisms to boost their tokenomics and attract investors. BinaryX’s proposed 74% token burn is an intriguing development that could significantly impact the price of its native token, BNX.
If approved, BinaryX’s latest proposal might significantly influence the value of its token, BNX.
The announcement from BinaryX proposes a new initiative that aims to reduce the total circulating supply of BNX tokens by 74%.
The study found that the plan for enhancing the sustainability of the token supply and boosting its scarcity includes the proposal as a key component.
Potential impact of the BinaryX’s burn
At the moment of publication, the circulating BinaryX token count stood at 372.3 million out of a total supply of 2.1 billion tokens, representing approximately 17.73%.
If the proposition is accepted, the BNB token’s maximum supply will be increased to $546 million, which corresponds to a maximum value of approximately $1.1 for each token based on the present market capitalization.
At the present price, BinaryX’s fully diluted market capitalization would amount to $889.9 million, assuming no other variables change.
While it’s important to note that the proposal isn’t guaranteed approval, it’s likely to pass given that each token holder has the right to cast a vote.
With the passage of the new proposal, the set maximum supply serves to minimize the impact of price decrease from potential future inflation. The scarcity element could further bolster BNX’s price trend as its market value expands.
A sustained bullish trend for BNX?
BNX has been among the top-performing cryptocurrencies in 2024. This week, it hit a new record high for the year at $1.67, marking a remarkable gain of over 500% since the past seven months.
In the past week, BNX experienced a significant surge of 65%, indicating strong investor demand and a resurgence of optimistic market feelings.
But will we see some profit-taking after the recent rally?
The newly unveiled plan might discourage short-term gains, but optimistic outlooks persist despite potential temporary price drops.
With a reduced maximum supply due to the planned 74% token burn, the value of each token could potentially increase. This decrease in available tokens might encourage more investors to buy and hold onto them.
The alignment of these factors could give new momentum to the BNX bulls, increasing the probability of a dramatic price surge.
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2024-07-19 14:15