Binance recently announced the completion of its 25th quarterly BNB burn, destroying about $453 million worth of its native token. The world’s largest cryptocurrency exchange by trade volume made this known in a blog post on its official website.
According to the announcement, exactly 2,139,182.98 BNB tokens were removed from circulation through its BNB auto-burn procedure. Binance carries out the quarterly burn as a strategy to drastically reduce the number of BNB tokens in circulation, creating scarcity that can potentially impact the token’s price.
According to Binance’s announcement, according to the BNB automatic destruction mechanism, the 25th BNB quarterly burning has been completed. A total of 2,139,182.98 BNB was burned this time, worth approximately US$453 million. https://t.co/ndHD5D1i0Q
— Wu Blockchain (@WuBlockchain) October 16, 2023
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By reducing the total number of BNB tokens in circulation, Binance plans to increase the token’s value for its investors. The quarterly burn mechanism underscores Binance’s commitment to its users and also highlights the future potential of the BNB asset.
The latest burn marks one of the largest burn events in the crypto exchange history. Recall that in the second quarter of 2023, Binance burned nearly 2 million BNB tokens which was approximately $484 million at the time. The large amount of burned tokens signifies Binance’s bullish outlook on the future of the coin.
Important things to know about BNB burns
BNB was launched in 2017 and it acts as the native coin of the BNB Beacon Chain, and the BNB Smart Chain. Upon launch, Binance committed to remove half of the total supply (100 million tokens) from circulation through the annual burning process.
Ultimately, the goal is to keep only 100 million BNB tokens in circulation thereby potentially increasing the value of the remaining asset. Binance automatically honors this commitment each quarter and it i calculated according to the auto burn formula.
Source: bnbburn
It is important to know that the mechanism is independent of the Binance exchange. Furthermore, the BNB chain continuously burns a portion of its gas fees in real time. This is done by using the real-time burn mechanism.
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BNB price reaction
The global crypto market is currently undergoing a recovery with the global market cap rising above 1.08 trillion signifying a 2.74% increase in the last 24 hours. According to data from Coinstats, BNB is currently selling at $213. The price is up 1.62% over the last day.
What’s more, BNB now has a circulating supply of 153,856,150 (153.8 million) coins with a live market cap of $32,785,019,424.177 ($32.7 billion). Finally, BNB has a 24-hour trading volume of $767,714,973.807.
The Binance community eagerly waits to see the immediate effect of the 25th quarterly burn on the price of the token.
Featured image source: Binance Twitter
Read More:
- Nearly 2 Million BNB Tokens Burned in Binance Quarterly Burn Schedule
- What is BNB (Binance coin) and what is it used for?
- U.S. Government Holds a Massive $5 Billion Worth of Bitcoin: Reports
