In a continuous effort to enhance the value proposition of its native cryptocurrency, Binance, the global blockchain company behind the world's largest digital asset exchange, has successfully completed its 25th Quarterly BNB Burn. A total of 2.14 million BNB, equivalent to approximately $453.5 million, were permanently removed from circulation, constituting about 1.38% of the total supply. This is part of Binance's commitment to reduce the total supply of BNB over time, thereby potentially increasing its scarcity and value.
Binance, with a user base exceeding 150 million globally, has established itself as a behemoth in the cryptocurrency space. Offering a plethora of services including cryptocurrency trading, blockchain-based financial services, and other blockchain-related offerings, Binance has been a major player in promoting cryptocurrency adoption worldwide.
What is BNB coin?
BNB, or Binance Coin, is the native cryptocurrency of the Binance ecosystem and BNB Chain. Initially created as an ERC-20 token on the Ethereum blockchain, BNB was later migrated to Binance Chain, a blockchain developed by Binance. BNB can be used for a variety of purposes within the Binance ecosystem, including paying for trading fees on the Binance exchange, participating in token sales on the Binance Launchpad, and more.
What is BNB burn?
The concept of "BNB Burn" is a crucial part of Binance's strategy to increase the intrinsic value of BNB. According to the Binance whitepaper, every quarter, Binance will use 20% of its profits to buy back BNB at market price and destroy them, until 50% of the total BNB supply (100 million BNB) is burned. The process of buying back and burning BNB reduces the overall supply of the coin, with the aim of creating scarcity, which could in turn drive up the value of the remaining BNB.
The 25th BNB Burn is a testament to Binance’s unwavering commitment to its roadmap, and a reflection of the platform's profitability and positive growth trajectory. Moreover, by maintaining transparency and engaging in practices like the quarterly BNB burn, Binance continues to bolster the confidence and loyalty of its vast user base, setting a commendable precedent in the crypto-industry.
With each passing quarter, the BNB burn event is keenly anticipated by the community, as it underscores Binance’s dedication to delivering value to its users and the broader cryptocurrency ecosystem. Through such strategic measures, Binance aims to continually foster a favorable environment for the cryptocurrency market, underscoring its position as a leading innovator in the blockchain space.