Banana Gun, the platform behind the BANANA token, has conducted a large token burn that removed 200,000 tokens from the market. This burn corresponds to 2% of the total supply worth around $8.68 million. The burn, the first in five months for the project, intends to reduce the supply and possibly increase the worth of the tokens.
BANANA Token Hits Weekly High Post $8.68M Burn
On August 14, the platform made a significant announcement regarding the destruction of 200,000 tokens. This action leads to a decrease in the total number of BANANA tokens, ‘burning’ which is often employed in the cryptocurrency market to increase scarcity of the token and, consequently, its value.
Following the burn, BANANA’s price surged to a weekly high within 24 hours, reflecting a positive response from the market.
“How was your day honey?”
– “Good, burnt $8.6M worth of $BANANA.“
2% of total supply destroyed forever.https://t.co/uVVwWDanke pic.twitter.com/O4hZehHRWQ
— Banana Gun
(@BananaGunBot) August 13, 2024
This burn is the first in several months which may suggest that the platform is trying to rekindle the interest in the token. Given this reduction in supply, the remaining tokens may experience higher demand, and hence, higher prices in case of favorable market conditions.
Listing on Binance Futures with 50x Leverage
Concurrently, Binance has revealed that clients may start trading the tokens’ futures with up to 50x leverage from August 15, 2024. This listing is expected to enhance the trading volume in the token since the futures contracts enable traders to engage in price prediction of the token.
High leverage may also encourage more investors to invest in the token, increasing trading volume and market attention.
Earlier in July, Binance revealed that it was launching the Banana Gun project on the newly established Airdrop portal where the token will also be listed. Consequently, the listing of the token futures is another sign of the token’s growing presence on the crypto exchange, which may help support long-term interest.
Increased Trading Volume and Open Interest
Following the burn announcement and upcoming futures listing, BANANA has seen a notable increase in trading volume. The trading volume surged by 129.79%, reaching $154.51 million, indicating heightened activity and interest in the token.
Additionally, open interest in the token’s derivatives increased by 3.82%, totalling $8.54 million. This rise in open interest suggests that new positions are being established, indicating expectations of future price volatility or movement.
Source: Coinglass
Meanwhile, with the bullish momentum in play, the token price swayed between an intra-day high and low of $48.91 and $41.21, respectively. At press time, the price was exchanging hands at $45.13, a 4% surge from the support level and 37% rally in the last week.
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