Binance obliterates more than $1.17 billion worth of BNB tokens in a fiery burn
Binance, the popular cryptocurrency exchange, has recently completed its 27th quarterly burn of Binance Coin (BNB) tokens, effectively removing $1.17 billion worth of coins from circulation. This burn amounted to approximately 1.3% of the total supply of BNB.
However, unlike previous burns, this particular one did not involve the Pioneer Burn program. Despite this news, the price of the BNB token did not react significantly. According to CoinMarketCap, the token actually experienced a 0.9% decrease in value within 24 hours, dropping to $600 at the time of writing.
Interestingly, over the past week, the BNB token’s price had actually increased by 13%, despite recent reports of the U.S. government seeking to impose a lengthy prison sentence on Binance founder Changpeng Zhao.
As a result of the burn, BNB’s market capitalization saw a 2.2% decrease to $88 billion, while trading volumes experienced a slight 1.4% increase.
This recent burn follows a similar event in January, where Binance removed approximately 2.14 million BNB worth $636 million from circulation. This burn accounted for around 1.38% of the total supply of BNB.
Since its launch in 2017, Binance has committed to destroying 100 million BNB coins, which is half of the coin’s entire supply, through regular burns executed every quarter. This process is automated and calculated using the auto-burn formula.
Binance representatives have emphasized that this burning process ensures transparency, auditability, and objectivity, independent of the centralized exchange. Additionally, BNB Chain continuously burns a portion of the gas fees on the blockchain in real-time.
In related news, Binance has seen a 25% decrease in its market share of Bitcoin as offshore markets shrink.
