- Binance marks its 25th quarterly BNB burn by removing $453 million worth of tokens.
- The recent Binance BNB quarterly burn sparks a 3% price surge within 24 hours.
Binance CEO Changpeng “CZ” Zhao recently joined the crypto community in celebrating a significant milestone – the completion of Binance’s 25th quarterly BNB burn. In this quarterly event, the world’s largest cryptocurrency exchange, Binance, successfully burned a substantial number of BNB tokens, amounting to a staggering $453 million in value.
Binance’s 25th Quarterly BNB Burn
On October 16, Binance conducted its 25th quarterly burn, removing a significant amount of BNB tokens from circulation. The burn involved a total of 2.14 million BNB tokens, reflecting a remarkable commitment to reducing the overall supply of BNB. This action was executed through the BNB Auto-Burn procedure and contributed to a reduction of BNB tokens in circulation.
Immediate Market Impact
In response to this significant quarterly burn, traders swiftly reacted, leading to a 3% increase in the price of BNB within just 24 hours. The surge shows that the burn has had a positive impact on the exchange’s native token.
- Total BNB Burn: Binance’s 25th quarterly burn saw the removal of 2.139 million BNB tokens through the BNB Auto-Burn procedure. Additionally, 314.69 BNB tokens were burned through the Pioneer Burn Program.
- Circulating Supply: The burn resulted in a reduction of 2 million BNB tokens from the circulating supply. As of now, the BNB token’s circulating supply stands at 151,705,885 BNB. Binance has expressed its intent to further reduce the circulating supply to 100,000,000 BNB through the BNB Auto-Burn procedure.
- Historical Burns: Over the course of its quarterly burns, Binance has successfully removed a total of 50.29 million BNB tokens from circulation. This impressive accomplishment demonstrates the efficacy of the Auto-Burn protocol employed by the exchange.
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Mechanism Behind the Burn
Binance’s burn mechanism utilizes an Auto-Burn protocol, which calculates the number of BNB tokens to be burned based on the BNB price and the number of blocks generated on the BNB Smart Chain (BSC) during the quarter. This transparent and efficient method ensures that the burn process is both precise and meaningful.
As per the information from the BNB burn portal, the estimated value of the next burn is projected to be 2,180,464 BNB. It’s essential to note that while this estimation provides a glimpse into the future, the current data suggests that the number of BNB tokens may increase in the 26th quarterly BNB token burn.
The positive impact of this quarterly burn on the BNB price is noteworthy. In the past 24 hours, the price of BNB has surged by 3%, currently trading at $213. The 24-hour price range is between $206.66 and $213.92, reflecting increased market activity with a remarkable 82% rise in trading volume. This substantial uptick underscores the growing interest among traders in the BNB token.
Broader Market Influence
It’s important to recognize that the broader cryptocurrency market plays a role in influencing BNB’s performance. Binance CEO CZ has pointed out that BNB has become deflationary due to continuous burns by Binance, making it an attractive choice for investors and traders alike.
Binance’s 25th quarterly BNB burn marks a significant achievement for the world’s biggest crypto exchange. The positive market response, with a 3% increase in BNB’s price and heightened trading activity, highlights the importance of these quarterly burn events. It will also generate more interest in the BNB coin in the coming weeks.
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