Earlier today, Binance announced through a post that it had burned nearly 1.1 million BNB tokens, which deserved $600 million at the time, in its most current quarterly burn. The total supply of BNB reduced from 170 million BNB to 169 million BNB.
What is Coin Burning? Coin burning is a process in which tokens are eliminated from flow, which would reduce the total circulating supply of said coin — resulting in lower inflationary pressures. A minimal supply typically results in favorable price action, which is helpful to both Binance and BNB holders.
According to Binance’s infographic, the 1.1 million BNB tokens burned represent a mere 0.65% of total supply — — a sizable drop from 1.81% last quarter. While the sheer volume of tokens burned pales in comparison to previous quarters, Binance’s 15th burn is certainly the greatest in dollar worth. This is just due to each BNB token deserving significantly more than previous quarters.
With the development of the Binance clever chain (BSC) and the DeFi space at big, BNB has actually skyrocketed more than 2800% in the past year. “BNB’s usage cases have broadened to numerous applications on numerous platforms and jobs within the crypto environment,” stated Binance’s CEO CZ.
“It’s used to pay transaction fees on Binance.com, Binance DEX, Binance Chain, and BSC … With the development of BSC, more individuals are using BNB, and the more utility it has, the more value it acquires,” he included.
Tradingview.com In the past quarter alone, the coin went up 16.8 x. Its meteoric increase from $15 to $430 in a year caused BNB’s market capitalization going beyond $90 billion at its peak — — making it the 3rd largest cryptocurrency behind Bitcoin and Ethereum. Despite the current thrashing that sent BNB plunging 30%, it still holds the position as one of the market leaders.
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