TL;DR Breakdown
- $639 million taken out of circulation permanently.
- Burn could impact price positively in short term.
Leading cryptocurrency exchange, Binance has completed the 17th BNB quarterly burn about an hour ago. According to the tweet from the exchange, a total of 1,335,888 BNB have been removed from circulation by dint of today’s event, which is perceived to be bullish for the price in the long term.
Over $639M burned in 17th BNB quarterly burn
Today’s record is not the highest in terms of the total number of BNB burnt. However, it is by far the largest in terms of the US dollar value, reaching over $639 million, which is a factor of the current price of BNB. In the previous BNB quarterly burn, only about 1.296 million BNB were burned, which was over $393 million at the time.
The idea of coin burning helps in supply management. By burning BNB, Binance sends the coins to a Burn address, which is basically a one-way private address that cannot be controlled by anyone. Coins sent to this address are forever removed from the current supply, and doing this often can help reduce inflation of the coin, which can influence price in a positive way.
Binance plans to burn 100M BNB
So far, Binance has removed a total of 33.19 million BNB from circulation through its BNB quarterly burn event. This sums to over $2 billion at the current price. Binance plans to burn 100,000,000 BNB in total, which is expected to be completed in the next five to seven years, according to the CEO Changpeng Zhao.
Recently, Ethereum also began burning some of part of Ether (ETH) paid in transaction fees, which was a functionality introduced by the newly-passed EIP-1559. Abot 567,438.09 ETH has been burned so far, which is worth more than $2 billion.
At the time of writing, BNB is up, trading at $479.50, which represents a 2.98% increase on the 24 hours count. It remains to be seen how impactful the 17th BNB quarterly burn will be to price in the coming days.
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