Binance, one of the leading cryptocurrency exchanges, has recently conducted its 25th regular token burn, eliminating 2.14 million of its native digital tokens, Binance Coin (BNB), from circulation. This reduction represents approximately 1.38% of the total supply. The tokens are employed for trading and fee payments on Binance and various decentralized finance applications.
As of Monday, CoinGecko ranks BNB as the fourth-largest cryptocurrency with a significant presence in the crypto market. It boasts a market cap of $32 billion and a price per coin of $213.
Binance has been systematically conducting quarterly burns of its BNB tokens since October 2017. The objective is to halve the total supply and leave only 100 million in circulation for potential value appreciation. The most recent burn removed 2,139,182 tokens, amounting to $4.53 million. This follows the previous quarter's elimination of around 1.99 million tokens.
Despite these substantial reductions, BNB's market price has only increased by a modest 2.74% to $213. The Auto-Burn formula, which functions independently of Binance's centralized exchange, ensures transparency in this process by providing quarterly reports to investors and the crypto community.
In addition to these measures, the standalone BNB Chain also contributes to the overall supply reduction by burning a portion of its real-time gas fees through a unique mechanism.
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