Blockchain News
Binance; BNB Price Rises Ahead of the 25th Burn
The world’s biggest exchange conducted its 25th Token Burn this week. Binance burned 2.14 million BNB with an estimated value of $501.7 million.
The process also included 314.69 BNB burned through the Pioneer Burn Program. This is in comparison to the 1.99 million BNB tokens (valued at $619 million) that were burned in the 24th quarterly BNB burn.
According to data from CoinMarketCap, the price of BNB is currently hovering around $213.84. It reached its daily peak at $217.12. Over the past week, it had remained stable, fluctuating between $204 and $207. The 25th burn significantly boosted the token’s price, which has risen by 2.9% in the last few hours.
The current circulation of BNB is 151,705, and Binance plans to reduce it to less than 100 million through its “auto-burn” program. So far, they have burned a total of 50.29 million tokens. According to the information from the BNB burn portal, the estimated value for the 26th burn will be around 2.18 million BNB.
Previous burn events have ranged from 808K to 2.2M tokens, resulting in supply reductions between 0.41% and 1.74%.
Launched in 2017, the “burn” involves moving tokens to an address not controlled by anyone, making them more valuable for holders during a supply decrease. This also strengthens Binance’s position as it aims for operational transparency and innovation in the crypto world. It’s a deflationary project and seeks to inspire similar initiatives in other blockchain projects.
How It Works:
The Auto-Burn protocol mechanism determines the amount of BNB to be burned based on the BNB price and the number of blocks generated on the BNB Smart Chain (BSC) during the quarter.
On the other hand, the Pioneer Burn Program permanently removes an amount of BNB from circulation equal to provable lost funds by eligible BNB Chain users. This amount is then added to the total quarterly burn figure.
