BNB Chain burned nearly $971 million worth of BNB in its 28th coin burn

0
109

BNB Chain burned nearly $971 million worth of BNB in its 28th coin burn. However, the BNB price did not react significantly to this news.

BNB Chain tiêu hủy 971 triệu USD trong lần đốt BNB thứ 28

The BNB burn activity has been carried out by Binance every three months since the platform’s inception. The exchange proactively burns a certain amount of BNB until the total supply is reduced from 200 million to 100 million tokens.

Since the beginning of 2022, Binance has switched to a new mechanism called BNB Auto Burn. Instead of calculating the value of BNB burned based on the exchange’s revenue, Binance uses a formula to calculate the number of coins burned based on the BNB price and the number of BNB Chain blocks generated within the corresponding timeframe.

At noon on July 22, 2024 (Vietnam time), BNB Chain announced the completion of its 28th BNB burn, with nearly $971 million worth of tokens destroyed.

Specifically, this time 1,643,698 BNB were burned with the token price hovering around $590. Compared to the most recent burn, the amount of BNB destroyed and the total value of the 28th burn were both smaller.

This can be explained by the fact that the BNB price had dropped relatively compared to the 27th burn on April 24. At that time, the BNB price was around $600 and continued to surge to a new ATH of $716 in early June.

Đồ thị 1D của cặp BNB/USDT trên sàn Binance vào lúc 01:30 PM ngày 22/07/2024

Although the burn value was lower compared to the 27th burn, this 28th burn still marks the second-highest USD value in the history of the entire operation. The 18th burn, with over $906 million BNB permanently removed, ranks a close third.

The BNB Burn design has proven to be an effective method for reducing total supply, thereby increasing the token’s value. Furthermore, the fact that Binance has maintained its leading position despite continuous legal troubles over the past two years further demonstrates the exchange’s strength and appeal.

Under the leadership of CEO Richard Teng, although there have been some controversial product strategies, it cannot be denied that the new CEO’s efforts have helped Binance overcome difficult times.