1.96 Million BNB Coins Burned, Impact On Binance Coin Price?

BNB burn is done regularly by Binance. (photo: doc. Cryptominded)

JAKARTA – The developer of Binance Coin (BNB) has implemented a burning mechanism on a regular basis. Burning is done to reduce the supply of coins circulating in the market by permanently eliminating them.

This activity is expected to increase the value of the coin as the supply decreases. Recently, cryptocurrency exchange Binance announced that it had completed its 20th quarterly burn on the BNB coin.

According to a post on his official blog, nearly 1.96 million BNB (approximately US$444.6 million) was burned in the process. This is the third quarterly burn through the relatively new "auto-burn" feature.

The previous BNB burn reflected token usage and revenue generated on Binance's centralized exchange. However, it has been replaced by the “BNB Auto-Burn” mechanism, a move the platform hopes to make the process more objective and clear to its community.

The new feature was first introduced by the developer on November 95, 2021 as an effort to help the BNB burning process be faster and more effective.

The 20th BNB coin burn comes as the crypto market has been volatile in recent months. This condition also dragged down the price of BNB.

Meanwhile, the boss of Binance, Changpeng Zhao or more familiarly called CZ, issued a statement during this bear market period. CZ seeks to spur crypto adoption and growth.

“During this downturn and all market cycles, our goal is to continue to build and invest in industries and projects to spur sustainable infrastructure adoption and growth,” said the Binance CEO.

“Historically, bear markets have been a great period for focused, long-term-minded builders. This time, we continue to improve our capabilities to support founders who are looking to build innovative long-term solutions for our industry,” he added.

Currently BNB ranks fifth by market cap, behind BTC, ETH, USDT, and USDC. According to CoinMarketCap data, BNB's market capitalization stands at $37.3 billion.