The Binance team declared on Sunday that it had burned more than 16 million BNB (ERC-20) tokens. The crypto exchange also revealed that it is migrating the ERC20 version of BNB to the native (BEP2) version. In just 24 hours, the price of BNB increased by 2% — from $310 to $315.
It is essential also to know that Binance’s CEO Changpeng Zhao revealed, through a tweet, that there will be a significant number of burns on-chain in the next hours and that there is no need to FUD.
Binance concludes its 22nd quarterly token burn
Binance has been making significant progress in transitioning from the ERC20 version of BNB to the native (BEP2) version ever since the launch of BNB blockchains.
According to a report from the Binance team, some holders still held the ERC20 versions, totaling roughly 16m ERC20 BNB, which was unconverted during the early migration. The exchange also noted it had been accepting deposits of BNB in ERC20, which allows the ERC20 versions to accumulate on the exchange.
Binance has revealed that the outstanding 16m ERC20 BNB have been swapped to BEP2 BNB on the exchange from their Ethereum wallets. These ERC20 BNB tokens will not be counted toward the quarterly burn and will not affect BNB total circulation. The exchange experienced its 22nd quarterly burn on January 17 and burned 2,064,494.32 tokens. Through the Auto-Burn mechanism, the exchange reduced the total quantity of BNB to 100,000,000.