BinaryX Proposes 74% Token Burn, Aims for Deflationary Model

• BinaryX proposes a 74% token burn, sparking bullish sentiments and a 38% price surge to $1.65 within 24 hours.
• BNX price is up 40.5% in the past week, fueled by market activity, on-chain events, and a deflationary token model proposal.
• BinaryX’s community will vote on reducing BNX supply to 1.62 billion, aiming for increased token utility and value.

Web3 gaming platform BinaryX (BNX) has made a proposal to burn 74% of its tokens. The community is feeling enthusiastic about this move because they see it as an opportunity to profit from future price spikes.

Following the news, the market responded favorably, and on the previous day, BinaryX’s price increased. The asset is now worth $1.65, a 38% increase. BNX gained 40.5% this past week and had a 64.27% monthly gain. This optimistic trend has been fueled by the community proposal, on-chain activity, and increases in the cryptocurrency market.

Anticipated Market Impact

The current market capitalization of BinaryX stands at $611 million, with an impressive 80.57% surge in daily trading volumes. Bulls expect continued momentum driven by the announcement. Increased market activity could push the token near its all-time high despite it being 12% below that mark.

A July 17 announcement revealed plans for a community vote on the token burn proposal. This proposal aims to reduce the maximum supply of BNX tokens by eliminating unissued ones. The total supply will drop to 1.62 billion, while the market cap will hover around $580 million.

Significantly, this move is designed to decrease the potential market supply of BNX tokens. Consequently, this will enhance the token’s utility by creating scarcity, thereby increasing its value. The community sees this as a step towards long-term growth and stability.

Broader Crypto Sector Growth

The official voting period will be announced by the BinaryX team through their media channels. BNX holders will participate by connecting their wallets to the voting page. According to BinaryX, the proposal will boost the token economy as adoption grows. BNX holders view this move as timely and aligned with recent market highs.

Inflows are being seen in the larger crypto market following weeks of negative activity. Altcoins and Bitcoin (BTC) are regaining ground. Currently trading at $65,200, bitcoin has increased by 4% over the past day. With a score of 69 on the Fear and Greed Index, extreme market greed is indicated.

With tokens like Immutable (IMX), Notcoin (NOT), MultiversX (EGLD), and Axie Infinity (AXS), among others, the GameFi industry has experienced expansion. The first half of 2024 has seen double-digit growth for several tokens. CoinMarketCap estimates that the market capitalization of gaming tokens is $21.4 billion. BinaryX is taking advantage of this expansion by launching its new proposition while the iron is still hot.