Binance Burns 1.94 Million Binance Coin Tokens

The popular cryptocurrency exchange Binance recently completed its 27th quarterly Binance Coin (BNB) token burn, removing $1.17 billion worth of coins from circulation. This move saw 1.3% of the total BNB supply being destroyed.

The 27th quarterly BNB token burn took place on the BNB Smart Chain (BSC) during the ongoing BNB Chain Fusion. A total of 1.94 million BNB tokens were burned during this process. This time, the burn did not include tokens as part of the Pioneer Burn program.

Despite the significant token burn, the price of BNB did not see much movement. According to CoinMarketCap, the token lost 0.9% of its value in 24 hours, trading at $600 at the time of writing. However, over the past week, the token’s price had risen by 13%, showing resilience in the face of recent news regarding U.S. regulatory concerns about Binance founder Changpeng Zhao.

Following the token burn, BNB’s market capitalization dropped by 2.2% to $88 billion, while trading volumes saw a slight increase of 1.4%. This burn comes after Binance removed around 2.14 million BNB tokens worth $636 million from circulation in January, destroying approximately 1.38% of the asset’s total supply.

Since BNB’s launch in 2017, Binance has committed to burning 100 million coins, which is half of the coin’s total supply, through regular token burns. This process is automatically executed every quarter using an auto-burn formula to ensure transparency and objectivity. Binance representatives have highlighted that this process is independent of the centralized exchange and provides a transparent and auditable mechanism for removing coins from circulation.

In addition to the quarterly burns, BNB Chain continuously burns a portion of the gas fees on the blockchain in real-time to further reduce the token supply and support its value. This strategic approach aims to maintain the scarcity of BNB tokens and create value for investors in the long run.

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