Leading cryptocurrency exchange Binance announced on Friday the completion of the 23rd quarterly burn of its native cryptocurrency, BNB. The latest burn, which is also the second quarterly burn this year, removed 2.02 million units of the BNB coin representing $676.7 million.
23rd Quarterly BNB Burn
A token burn is a deflationary mechanism a crypto project uses to permanently remove a portion of its native cryptocurrency from circulation. The cryptocurrency gets burnt when it is sent to an inaccessible digital wallet called a burn wallet. The goal is to reduce the overall supply of the asset and bolster its scarcity, thereby increasing its price.
Since 2017, Binance has committed itself to a quarterly burn of the native currency for its blockchain, BNB Chain. The platform had previously noted that it aims to burn half of its 200 million total supply. The latest burn represents 1.27% of BNB’s total supply.
Binance’s latest two million units burn includes a 656 BNB burn that was claimed by the pioneer burn program. This program, which began in 2020, helps make whole Binance users who lost their BNB assets for things like wrong transactions.
Notably, Binance isn’t the only project that runs a token burn mechanism. Ethereum, the second-largest blockchain, runs a burn policy for its Ether assets. Also, Binance’s popular decentralized exchange PancakeSwap has also adopted a frequent token burn mechanism to curb inflation. For example, PancakeSwap burnt 7 million units of its CAKE token worth $30 million in February 2023.
BNB’s Price Remains Bullish
Although BNB’s price did not jump to the news of the 23rd quarterly burn, the asset has shown a healthy price movement, proving its bullish trend over the past few months. For most of this year, BNB has maintained a $300 price range. This feat was achieved despite legal scrutiny that sparked between Binance and financial regulators within the first quarter.
Currently, BNB trades at $334, representing about a 3% increase from its price within the last 24 hours.
