2024-04-25
Binance, the popular cryptocurrency exchange, has recently Announced the successful completion of its 27th quarterly burning of Binance Coin (BNB) tokens.
This burning process involved the removal of an impressive $1.17 billion worth of coins from circulation, which accounted for approximately 1.3% of the total supply of the asset.
Interestingly, this particular burning procedure did not include the burning of tokens as part of the Pioneer Burn program.
Despite this significant development, the price of the BNB token did not show any immediate reaction.
According to CoinMarketCap, within a span of 24 hours, the token experienced a decrease of 0.9% from its previous value, reaching $600 at the time of writing.
In contrast, over the past week, the price of the BNB token has actually increased by 13%, despite the recent news regarding the U.S. government's intention to impose a three-year jail sentence on Binance founder Changpeng Zhao.
While the market capitalization of BNB experienced a slight decline by 2.2% to reach $88 billion, trading volumes saw a minor increase of 1.4%.
It is worth noting that Binance had previously Removed around 2.14 million BNB tokens, equivalent to $636 million, from circulation in January.
This burning procedure accounted for approximately 1.38% of the total supply of the asset.
Since the launch of BNB in 2017, a commitment was made to destroy 100 million coins, which is half of the coin’s entire supply, through the process of burning.
This offer is automatically executed every quarter and is calculated using the auto-burn formula.
Representatives from Binance have explained that this burning process ensures a transparent, auditable, and objective procedure that is independent of the centralized exchange.
Furthermore, BNB Chain continuously burns a portion of the gas fees on the blockchain in real-time.
