Can BNB price hit $1,100 as staking yield hits 12%?

Binance Coin price continued to consolidate at a key resistance level as its recent rally showed signs of losing momentum.

Binance Coin (BNB), the native token of the BSC network, was trading at $655 on November 29. It has surged 223% from its 2023 low and 9% in November, underperforming most major cryptocurrencies.

BNB coin’s strong fundamentals and technical indicators point to potential further gains in December. The BSC ecosystem is performing well, and the total value locked in the DeFi ecosystem has increased by 18% to $5.53 billion in the last 30 days.

Similarly, the volume of cryptocurrencies traded on DEX protocols such as PancakeSwap (CAKE) and Uniswap rose to over $34 billion during the same period, with PancakeSwap contributing nearly $30 billion.

The data also shows that the network continues to reduce coin circulation through burning. 652 coins worth $429,000 were burned in the last seven days. In total, the network eliminated $160 million worth of coins, aiming to reduce the total supply from 144 million to 100 million, a measure designed to reduce inflation.

The ongoing burn has significantly increased the staking yield at 12.5% ​​along with increased network revenue. This means that a $100,000 investment in BNB could bring in approximately $12,500 per year.

According to BNB price technicalities, $1,100 can be reached. BNB price chart | Source: crypto.news

The weekly chart shows that Binance Coin has further upside potential in the coming weeks. It has formed a cup and handle formation with resistance at $665 since October 2021. This bullish pattern includes a horizontal line, a rounded bottom, and consolidation or pullback.

The depth of the container is around 70%. Applying the same measurement at $665 shows that the coin could rise to $1,130 in the event of a breakout. For this to happen, BNB must surpass the critical levels of $875, which is an extreme overshoot of the Murrey Math Lines, and the psychological level of $1,000.

The invalidation point for this view is $437, which marks the bottom of the trading range based on the Murrey Math Lines tool.