In the just concluded auto-burn on the BNB Chain on Wednesday, Binance burned 1,991,854.33 BNB worth approximately $484 million, it stated in a blog post. The auto-burn marked the 24th burn since inception in 2017 and the third quarterly burn on the chain this year.
Out of the total burn, the chain burned 747.51 BNB from the Pioneer Burn Program and 1,991.106.81 from the Real Burn (Auto-Burn Pioneer Burn), the leading crypto exchange stated. A coin burn is simply when a network destroys some of its tokens, often aimed at reducing the amount of the coin in circulation.
The BNB Chain carries out a quarterly automatic burn, removing a specific amount of Binance’s native token from circulation. Binance intends to remove half of the total supply of BNB (about 100 million BNB) from circulation through a periodic burn such as this.
Decline in Quarterly Burn
The BNB Chain has seen a steady quarterly decline in the amount of Binance Coin (BNB) burned in recent months. The 23rd and 22nd auto-burn saw the network burn 2,020,132.25 ($676,744,304) and 2,064,494.32 ($575,456,677.66) BNB, respectively
The BNB Chain auto-burn mechanism is designed in such a way that it apportions the amount of BNB to be burned based on the number of blocks produced on the BNB Smart Chain (BSC) and the price of the asset. Hence, the decline in the amount of BNB is evidently due to price declines and reduced on-chain activity.
BNB’s price has been badly affected by the ongoing regulatory issues that its owner, Binance, is facing. BNB has dropped from above $317, which it started last quarter with, to around $240.
Flat Market
BNB’s price was almost unaffected by the burn, at least at press time. The asset moved slightly above $243 after the burn but has given out much of its gain in what is generally a flat market.
The expected pump, which follows a token burn, eluded Binance’s native token as it has continued to hold steadily above $240.
