Binance completed its quarterly token burn, removed roughly 3.7 million BNB from circulation
Crypto exchange Binance has completed its quarterly BNB burn, burning a total of 3,691,888 Binance Coin (BNB), worth approximately $ 165.8 million. According to Binance CEO Changpeng Zhao, this time the number of BNB burned 2.4 times more in value terms than the previous event.
Burn complete. About 2.4x the previous one in fiat terms. Blog article coming soon, in multiple languages.
Also unlocked 16 million #BNB. These were suppose to be unlocked in July 2020. We just forgot. They are moved to a team token holding address, same one as before.
— CZ ? Binance (@cz_binance) January 19, 2021
Binance completed burn token with 2.4 times higher amount of BNB compared to previous events
Binance typically conducts a quarterly burning event of BNB, helping to reduce supply. In theory, this could help BNB increase in price if the demand for tokens remains stable.
Just as The Block’s chief research officer, Larry Cermak predicted a few hours earlier, this latest BNB burn is the biggest coin burn to date. This can be explained by Binance’s increasing spot and futures volume in the last quarter of 2020.
Cermak said:
As Binance CEO Changpeng Zhao previously stated, the scale of coin burn is increasing, demonstrating a significant increase as the number of BNB burns each time is based on the number of transactions made on the exchange per quarter.
Just a day before the start of the event, BNB price hit a new all-time high of $ 46.81. This could be a sign of prediction as token burning often drives the price of BNB up by decreasing its total supply.
Binance began recording previous total tokens on October 17th. The platform burned $ 36.7 million (at the time) of BNB. The exchange removed two million BNB from circulation at the time, narrowing its total supply to 185,474,825. Previously, Binance burned just over 800,000 BNB in July 2020.
According to Binance’s original plan, the exchange will continue to burn quarterly until 100 million BNB remains – or 50% of the total number of tokens ever issued.
At press time, Binance Coin’s price is trading around $ 45.32, still slightly lower than the previous ATH level of $ 47.05.
Read more:
- CEO Binance Has Been Discussing An Accelerated Burn Program For BNB, How Does The BNB Price Affect?
- Binance Launches $10 Million Fund To Support Projects In The Polkadot Ecosystem