In a recent development, Binance, a prominent player in the cryptocurrency exchange market, carried out its 25th quarterly BNB token burn on Monday. The operation incinerated over $450 million worth of tokens, including more than 2.1 million BNB and an additional 314.69 tokens through the Pioneer Burn Program for lost tokens.
This strategic move aligns with Binance's deflationary model strategy to enhance the scarcity and potential value of its native token. Throughout its history, the company has incinerated between 808,888 and 2.22 million BNB per event, reducing the total supply by 0.41% to 1.74%. The Auto-Burn process used for these operations is designed to remove half of the total supply (100 million BNB) from circulation and operates independently of the Binance exchange.
Despite this significant burn, the market price of BNB remained largely stable, reflecting broader crypto market trends with a slight 3% gain and trading at $213. However, it is still down by 13% year-to-date. The price of BNB is influenced not only by supply but also by wider crypto market trends, regulatory developments, and macroeconomic indicators.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.