BNB Chain conducted the third quarterly burn of its BNB token so far this year. On this occasion, 2,139,182 units of the BNB cryptocurrency were destroyed, which is equivalent to approximately 500 million dollars.
The network makes available to users the address on the blockchain where last quarter’s token burn can be verified.
After the removal of the tokens, there was an increase in the price of the BNB token. In the last 24 hours, the asset’s price went from $207 to $213, representing a 1.5% increase, as can be seen in the chart below from TradingView. It is worth clarifying that, in addition to the bullish catalyst of token burning, bitcoin (BTC) started the day higher and that boosted several cryptocurrencies.
According to estimates from the bnbburn.info site, 2,180,119 BNB with an average value of $211 per unit will be destroyed in the upcoming burn.
So far, a total of 50 million BNB has been burned. This is done through a mechanism called BNB Auto-Burn, which adjusts the number of tokens to be burned based on the price of BNB and the number of blocks generated on the BNB Smart Chain (BSC) during the quarter.
This year there have been three burns with amounts ranging between 1,900,000 and 2,000,000 BNB.
The purpose of the destruction of the tokens is to increase the scarcity of the cryptocurrency, which translates into a possible appreciation of its value in the market, if demand increases.
BNB Chain also features another burn program called Pioneer Burn. It aims to help eligible users who lost tokens as part of mistakes they made when testing Binance Smart Chain when it was launched in 2020.
Image: Copyright: stlegat
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