Binance Burns Nearly $394 Million of BNB Tokens

Major cryptocurrency exchange Binance has completed its 16th quarterly Binance Coin burn, destroying nearly $394 million worth of BNB.

July 19, 2021, | AtoZ Markets – Binance has reported the completion of the 16th quarterly Binance Coin (BNB) token burn. In the last quarter, 1,296,728 BNB was burned with a total value of $394 million.

This number included 5,163 BNB, which were sent by users to inaccessible addresses and compensated by the exchange.

The remaining 16 million BNB were unlocked and moved to the team's address according to the schedule set out in the white paper,” writes Binance CEO Changpeng Zhao. "The Binance team has never used or sold a single BNB until now, only burned it."

The potential impact of the Binance BNB tokens burn

Earlier this year, the CEO of Binance explained the potential impact of the recent BNB burns on existing Binance Coins. “When you burn coins, they are taken out of circulation forever. It increases the value of the remaining coins,” Zhao said.

The last burn turned out to be larger than the previous one at BNB - in April Binance destroyed 1,099,888 BNB - but significantly below it in dollar terms. The value of the tokens destroyed then was $595 million. Since then, however, BNB has adjusted from more than $600 to the current $300.

The second quarter became busy for crypto exchanges. Trading volumes jumped sharply in May against the backdrop of a fall in the market, but in June fell by 56% to $958 billion. Prior to that, since January, the figure did not fall below $1 trillion. Binance accounts for about 70% of the total trading volume of trusted exchanges.

In addition, June saw a decrease in the number of daily transactions carried out on the exchange-created Binance Smart Chain blockchain. In May, the value exceeded 10 million, but during the last month, it rarely reached 4 million, which also reflects changes in user activity in general.

Binance coin regains $50 billion market cap

Binance Coin has shown a visible reaction to the latest announcement. The token is currently trading near $305 with a market capitalization of over $51 billion.

According to the latest data published by Coinmarketcap, BNB is the 4th most valuable cryptocurrency in the world behind Bitcoin (BTC), Ethereum (ETH), and Tether (USDT).

Binance Coin started 2021 at a price level of $37 and a market cap of less than $8 billion. The cryptocurrency crossed the market cap of $50 billion for the first time in April 2021. BNB became one of the few digital currencies to reach a market cap of $100 billion in May 2021 amid a surge in demand for cryptocurrency assets.

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