Bitrabo Editorial
Binance has successfully completed its quarterly BNB token burn, removing millions of tokens in one day. While this is positive news for the Binance Coin (BNB) community, the price of BNB has not yet responded positively to the reduced supply.
Binance Destroys Close to $1 Billion Worth of BNB Tokens
The BNB Foundation announced the completion of its 28th quarterly token burn on the BNB Smart Chain, where approximately 1,643,699 BNB tokens were burnt, amounting to $971 million.
This burn represents 0.81% of BNB’s total supply, removing over 1.64 million tokens from the total 145,937,964 BNB in circulation. BNB is the primary coin in the BNB Chain ecosystem, essential for powering the blockchain.
BNB employs a unique token burn strategy to gradually reduce the total supply and potentially increase scarcity, aiming to reduce the circulating supply to 100,000,000 BNB. This means around 45.9 million tokens still need to be eliminated to reach the target supply.
Additionally, BNB utilizes an auto-burn mechanism that systematically burns tokens, providing an auditable process for token burning since early 2022. The quarterly number of burnt tokens is reported independently from Binance’s centralized exchange.
Market Price Trends Downward Despite Token Burn
Despite the substantial token burn worth nearly $1 billion, the price of BNB has not shown a significant bullish response. The current price of BNB is $580.19, making it the fourth largest cryptocurrency by market capitalization, but its market price is experiencing a slight downward trend post-burn.
Compared to the preceding quarterly burn, the 28th quarter saw a lower number of burnt tokens and decreased BNB value. After the 27th quarterly burn, the price of BNB had risen steadily, reaching an all-time high of $717 in June.