Binance exchange burned more than $500 million worth of BNB tokens

The largest cryptocurrency exchange plans to halve its initial supply of BNB tokens

Crypto exchange Binance has conducted another quarterly burn of more than 2 million BNB tokens, which has a market valuation of more than $500 million. As of 1:15 p.m., the BNB token is trading at $213.1 with a capitalization of $32.29 billion, according to Coinmarketcap.

BNB/USDT
212,5 +5,4 (2,61%)
Oct 16

The burn procedure was carried out within the Auto-Burn and Pioneer Burn programs. In total, Binance plans to halve the initial supply of BNB tokens, leaving 100 million tokens in the market.

The so-called burn technically represents the transfer of a predetermined amount of tokens to a non-existent address, which effectively removes that volume of coins from circulation forever. A similar deflationary mechanism has been implemented for a number of other tokens, and for projects with small capitalization often serves as a powerful catalyst for price growth in the short term.

In the next quarter, the exchange plans to burn almost 2.2 million tokens, reducing the market supply, according to estimates of the Bnbburn service, by about $460 million. Last quarter, the Binance exchange took out of circulation almost 2 million BNB tokens worth $484 million.