Binance wipes out $640 million in BNB tokens, its biggest burn to date
Binance wipes out $640 million in BNB tokens, its biggest burn to date By Hannah Perez

More than one million BNB tokens were taken out of circulation at Binance’s 17th Binance burn event. The price of the cryptocurrency rose after the announcement and is approaching USD $500.

***

The world’s leading cryptocurrency exchange Binance burned just over USD $640 million of its native Binance Coin (BNB) token on Monday. The event represents Binance’

s 17th quarterly burn.

Today we completed our quarterly BNB burn today, permanently disposing of 1,335,888tokens, the company said in a statement. Of that total, 17,839 BNB were burned through Binance’

s Pioneer Burn Program. The total figure is valued at USD $642 million at the time of writing.

Burning refers to the process of permanently removing a crypto token from circulation, thereby reducing its supply and potentially increasing its price. When Binance launched the BNB coin in 2017, it committed to burning a total of 100 million BNB, or 50% of its total supply. The 40% supply of BNB was originally allocated to the Binance

team.

According to data from The Block Research, the company has burned 16.60% of its total BNB supply to date. Binance

burns BNB each quarter based on its trading volumes from the previous quarter.

The latest burn of more than one million BNB tokens is the largest the exchange has ever done in U.S. dollar terms, although it is not the largest by number of coins. Notably, the amount is also larger than the 1.2 million BNB tokens destroyed in the previous burn

, which took place in July, as well as the 1,088,888 eliminated in the 15th burn.

See also  MicroStrategy invests $177 million in Bitcoin and now holds 109,000 BTC

BNB price rises after 17th burn

By the time of editing this article, the price of the cryptocurrency seems to be favored by the supply reduction event. According to data from CryptoMercados, the value of BNB has risen nearly 5% in the last 24 hours to trade at a price of USD $481. The rise also comes amid a widespread uptrend led by the leading cryptocurrency, Bitcoin

, which has climbed above USD $60,000.

Binance wipes out $640 million in BNB tokens, its biggest burn to date<img src=”https://yellowrocketagency.com/wp-content/uploads/2021/10/bnb-prices…” alt=” width=”1504″ height=”714″ />

The price of Binance Coin had already seen a slight increase last week following the announcement of a new $1 billion fund to boost the development of Binance Smart Chain (BSC), the network Blockchain of the exchange.

Currently the third largest cryptocurrency by market capitalization, BNB reached an all-time price high of nearly USD $700 in May amid a widespread upward movement in the digital currency market. At the time, the rise also coincided with the 15th token burn, which took place in April.

Could the latest burn take BNB back to its all-time high or even higher?

Recommended Reading

Sources: Binance, The Block, archive

Version by Hannah Estefania Perez / DiarioBitcoin

Image from Unsplash