Binance Coin (BNB/USD) has been on a major bullish rally, with the token making 20% gains over the past week. These gains are being attributed to developments in Binance’s network.
Binance has announced that more than one million BNB tokens have been taken out of circulation during this token burn. These coins are valued at over half a billion dollars, making it the most valuable token burn by Binance so far. The increased value of the burn is attributed to the increased values of BNB.
Binance’s Token Burn
Binance announced this one million token burn in a post on its website. The burning process started in October four years ago. In the recent announcement, BNB stated that 1,335,888 BNB tokens were removed from circulation. This number of tokens is equivalent to around $640 million at the time the burn was taking place.
Out of the total burned amount, 1,318,049 BNB tokens underwent the actual burn, while the remaining 17,839 BNB tokens were burned through Binance’s Pioneer Burn Program. This program accounts for BNB tokens that have been lost after being sent to dead addresses.
During the 16th token burn, Binance burned 1,296,728 BNB tokens, while 1,088,888 tokens were burned during the 15th token burn. The 14th burn was bigger in terms of coins, as over 3 million BNB tokens were removed from circulation. However, this burn was small in terms of value due to the low prices of BNB at that time. The 14th burn removed around $600 million from circulation.
Token burn has a Positive Effect on BNB
BNB’s market capitalization has increased significantly following the recent token burn. BNB’s total market cap is around $83 billion, and it is ranking as the third-largest cryptocurrency by this metric. The rising BNB prices have also been the cause of the high dollar value of the burned BNB tokens.
BNB conducts quarterly burns as detailed in its whitepaper. The network plans to buy back and burn BNB tokens until supply is halved from 200 million to 100 million BNB. Data from CoinGecko shows that the circulating supply has reduced to 168,137,035 BNB tokens.
The post Binance 17th token burn removes over 1 million tokens from the supply appeared first on Invezz.