Leading cryptocurrency exchange, Binance announced the completion of its 13th quarterly burn. The platform reportedly burned a total of 2,253,888 BNB, which is roughly equivalent to $68 million worth of tokens. This is its highest-ever burn with respect to dollar value and the fourth-highest in terms of the amount of BNB burned.
Today, we burned $68M USD in $BNB from the circulating supply, effectively removing it forever.
Read here ⬇️https://t.co/QTZCL1VrCd
— Binance (@binance) October 17, 2020
Announcing the same, Binance’s official blog post said,
“This effectively took $68 million USD worth of BNB out of circulation forever. This is a healthy, steady increase for our BNB burn in USD terms, compared to the last quarter.”
What is Token Burning and why is it important?
Token burning essentially involves the permanent removal of existing cryptocurrency coins from circulation. The practice of burning tokens is quite popular in the industry and the process is very simple. It’s a deliberate action taken by the company to remove a certain number of available tokens from circulation. There are multiple reasons as to why the creators choose to burn tokens. The most common of them is to enhance the value of each token by reducing the existing supply. This also helps the token holders to benefit in several ways from the process.
BNB’s Price Appreciation
Binance Coin [BNB] has been outperforming the market for quite some time and was found to be trading at $30.63. The overhead resistance level stood at $33.4, the high that was established on the 14th of September. BNB has been greatly affected by the performance of Binance and a slew of positive announcements as it expanded its wings in the DeFi space. Especially the food token on the DeFi menu has significant bolstered the price and popularity of the token.
On a similar note, the blog mentioned,
“The new DeFi use cases absolutely helped BNB’s growth. From locking liquidity into Burger or PancakeSwap to paying for the minuscule gas fees on Binance Smart Chain, all of these helped expand the utility value of BNB. I want to take this opportunity to make a special thanks to all of our community members for contributing to the BNB ecosystem.”
This quarter has witnessed a significant growth of BNB as it rose from a low of $18 and growing by nearly 66%. Some of the other crucial drivers that could be attributed to the growth of the token were the introduction of Binance Liquidity Pool, Launchpool, and Binance Savings.