Binance Completes 27th Quarterly Token Burn: Can BNB Reach $800?
Leading cryptocurrency exchange Binance recently completed its 27th quarterly token burn, a major milestone in its efforts to reduce the total supply of its native token, BNB. Token burning, a process of permanently removing tokens from circulation, is a crucial part of Binance's strategy to maintain the scarcity and value of the BNB token.
In the latest token burn, 2,141,487.27 BNB tokens, equivalent to approximately $636 million, were removed from circulation. This burn was executed through BNB Chain's Auto-Burn mechanism, an objective and independently auditable process that adjusts the amount of BNB to be burned based on the price of the token and the number of blocks generated on the BNB Smart Chain (BSC). ) during the quarter. .
The ultimate goal of this process is to gradually decrease the total supply of BNB tokens until it reaches 100 million. Currently, the total supply stands at 149,532,856 BNB tokens, indicating that Binance is halfway to its goal of removing 100 million tokens from circulation.
Impact of BNB burning on Binance price
The BNB coin price has shown a neutral trend, trading in a closed range between $278 and $345.5 until mid-February. However, as volatility in the market grew, this altcoin jumped approximately 110%, before facing rejection at $635. Since then, the price has been trading in a consolidated range between $506.5 and $635.
Positively, the Binance token has added 11.43% in the last seven days and 10.12% in the last 30 days. Furthermore, its year-to-date (YTD) stands at 94.58%, indicating strong bullish Binance coin price action over the coming months.