Binance burns $444M more in BNB

The periodic burning of BNB by Binance is a purportedly deflationary technique that the exchange utilizes to lower the overall quantity of its coins and increase demand for them.
Binance burns $444M more in BNB
Binance burns $444M more in BNB

Binance, a cryptocurrency exchange, has revealed that the 20th quarterly burn of its native coin, BNB, has been successfully completed.

According to a statement on the company’s official blog, the process resulted in the burning of over 1.96 million BNB, which is equivalent to around $444.6 million. This event marked the company’s third quarterly burn using the relatively new “auto-burn” technology.

The earlier BNB burns were a reflection of the usage of the tokens and the money generated in the centralized exchange run by Binance.

However, it has been replaced with BNB Auto-Burn, which is a step that the platform anticipates making the process more objective and obvious to the community as a result of taking this action.

The implementation of BEP-95 in November 2021 paved the way for Binance’s BNB auto-burn mechanism, which was developed in an effort to speed up the process of burning BNB tokens.

The 20th burn occurs at a time when the market is experiencing tremendous upheaval. The price of BNB has also been negatively affected by the sharp drops that have occurred over the past few months.

At the beginning of the year, the native token had a market value that was greater than $500. Since then, the price has dropped by almost sixty percent.

CZ, the CEO of the exchange, pondered on the bearish momentum that has been plaguing the market, and he stated,

“During this downturn and all market cycles, our goal is to continue building and investing in the industry and projects to spur adoption and further infrastructure growth. Historically, bear markets have been great periods for focused and long-term-minded builders. This time, we continue to be bullish on our capability to support founders looking to build innovative, long-term solutions for our industry.”