How token burns affect price, and when they don’t

💡 DMK Insight

BNB’s current price of $951.67 highlights a critical moment for tokenomics: demand and utility must align for price appreciation. While token burning can create scarcity, it’s not a guaranteed price driver unless backed by strong use cases and market transparency. BNB has seen significant utility in the Binance ecosystem, but if demand falters, even aggressive burns won’t sustain its value. In contrast, SHIB’s speculative nature often leads to volatility that can overshadow its utility, making its price movements more unpredictable. Traders should watch for any shifts in trading volume or utility metrics for BNB, as these will be key indicators of whether the current price can hold. Look for BNB to maintain support above $900; a drop below could signal waning confidence. Conversely, if demand spikes, we might see a push towards new highs. Keep an eye on broader market trends, especially in the DeFi space, as they could impact BNB’s trajectory significantly.