More than one million BNB tokens were taken out of circulation at Binance’s 17th burn event. The price of the cryptocurrency rose after the announcement and is approaching $ 500.
The world’s leading cryptocurrency exchange, Binance, burned this Monday just over USD $ 640 million of its native token Binance Coin (BNB). The event represents the seventeenth quarterly burn of Binance.
“Today we have completed our quarterly BNB burn, permanently eliminating 1,335,888” from tokensthe company said in a statement. Of that total, 17,839 BNB were burned through the Pioneer Burn Program of Binance. The total figure is valued at $ 642 million at the time of writing.
Burning refers to the process of permanently removing a crypto token from circulation, thereby reducing its supply and potentially increasing its price. When Binance launched the BNB coin in 2017, it promised to burn a total of 100 million BNB, that is, 50% of its total supply. The supply of 40% of BNB was originally allocated to the Binance.
According to data from The Block Research, the company has burned 16.60% of the total BNB supply to date. Binance Burns BNB each quarter based on your trading volumes from the previous quarter.
The last burning of more than a million tokens BNB is the largest the exchange has ever made in US dollar terms, although it is not the largest by number of coins. It should be noted that the amount is also higher than the 1.2 million tokens BNB destroyed in the previous burn, which took place in July, as well as 1,088,888 eliminated on the 15th burn.
BNB price rises after the 17th burn
At the time of writing this article, the price of the cryptocurrency appears to be favored by the supply reduction event. According to data from CryptoMarkets, the value of BNB has grown about 5% in the last 24 hours to trade at a price of USD $ 481. The surge also comes amid a widespread uptrend led by the major cryptocurrency, Bitcoin, which has risen above $ 60,000.
The price of Binance Coin had already registered a slight increase last week following the announcement of a new $ 1 billion fund to boost the development of Binance Smart Chain (BSC), the network Blockchain of the exchange.
Currently the third-largest cryptocurrency by market capitalization, BNB reached an all-time price high of nearly $ 700 in May amid a widespread bullish movement in the digital currency market. At the time, the increase also coincided with the 15th token burn, which took place in April.
Could the latest burn bring BNB back to its all-time high or even higher?
Hannah Estefanía Pérez’s version / DailyBitcoin
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