Binance has completed its 14th BNB burn, worth over $ 165 million.
In this process the BNB asset is essentially destroyed while reducing the supply.
This is Binance’s biggest BNB burn to date.
Binance, the world’s largest cryptocurrency exchange, recently completed its quarterly burn of its native cryptocurrency, BNB.
Each quarter, Binance “burns” a portion of its BNB based on the number of fees generated. The platform essentially redistributes these fees to cryptocurrency holders and removes those BNBs from the market forever.
As Bitcoin steadily hits all-time highs and Ethereum has just climbed to an all-time high, interest in the cryptocurrency space is increasing. This can be seen in the increasing use of the Binance trading platform .
This growth matches Binance’s biggest cryptocurrency burn. The company burned more than $ 165 million worth of BNB . With this latest acquisition, the supply in circulation has decreased by more than 3.5 million.
Binance: pioneer of accelerated BNB combustion
The Binance team has pledged to burn 100 million BNB, or half of the total supply of BNB tokens. So far, Binance has bought back around 13%, currently valued at around $ 426.3 million.
Noting that at this rate, the combustion of all BNB assets would take nearly three decades. The company has decided to speed things up a bit. She hasn’t specified how fast she plans to continue, but her current trajectory is five to eight years. It uses a metric previously based on Binance trading volumes.
At the current BNB price, the total value of the 100 million coins redeemed would equate to just over $ 4 billion, the amount that will have been reinjected into the BNB ecosystem.
The reduction in supply should theoretically lead to a further rise in the price of BNB.
The BNB ecosystem
Binance designed BNB to provide value to its holders. For this the company acts in different ways. In addition to quarterly token combustions, which inject funds directly into the BNB ecosystem, Binance offers its token holders the opportunity to save on transaction fees, generating an automatic discount on the exchange.
Depending on the amount of BNB a user holds, they receive higher savings per transaction. The amount end up being important if you are a professional trader or buy / sell frequently.
The company has also partnered with various resellers and services, creating a path to using BNB in the real world. With more use cases presented, BNB could become a more demanded cryptocurrency.