BNB Chain Burns $971 Million Token Burn in 28th Quarterly Event
BNB Chain Burns – The BNB Foundation has announced the completion of its 28th quarterly BNB token burn, just two weeks after celebrating its seventh anniversary. This burn event is one of the catalysts that could potentially drive a surge in altcoin values during the anticipated altcoin season.
Details of the Quarterly Burn
In this latest event, the BNB Chain ecosystem burned 1,643,698.8 Binance Coin (BNB) tokens, worth approximately $971 million. This action is part of the BNB auto-burn mechanism, which operates independently of the Binance centralized exchange and is reported quarterly. The auto-burn mechanism aims to eliminate 100 million BNB tokens, equivalent to half of its total supply, from circulation.
Historical Context and Previous Burns
The quarterly burn program has been running since October 2017. In the previous quarterly burn, which occurred in April, 1,944,452.51 BNB tokens worth $1.17 billion were burned, leading to a 5% increase in BNB’s price. This recent burn, however, is unique as it occurred directly on the Binance Smart Chain (BSC) amid the ongoing BNB Chain Fusion. The corresponding BNB amount was sent to a “blackhole” address, marking the first of many such events.
Market Reaction and Analysis
Despite the significant burn, the price of BNB did not show much immediate reaction. A popular X account noted, “BNB Burn is an activity carried out periodically by Binance every three months since the platform was established. The exchange proactively burns BNB until the total supply is reduced to 100 million from 200 million tokens.”
Alongside the auto-burn mechanism, the BNB ecosystem also employs a real-time burn mechanism, introduced with the BEP95 update. This mechanism is based on gas fees, and nearly 234,000 BNB tokens have been burned under this system since its inception.
Impact on Trading Volume and Price
Following the burn report, BNB trading volume surged by 28%, accompanied by a slight increase in value. Token burning increases the scarcity of the remaining tokens, which can potentially boost their value. The BNB community hopes for positive price action as a result of these burns. However, the BNB price remains subdued below $600 after briefly testing this psychological level.
Technical Indicators and Market Sentiment
Binance researchers highlighted that “Market corrections can act as opportunities to add to your portfolio.” On the daily timeframe, technical indicators lean towards the upside. The Relative Strength Index (RSI) is well above the mean threshold of 50, and the Moving Average Convergence Divergence (MACD) is also above the signal line and in positive territory, indicating buying pressure exceeds selling momentum. Nevertheless, the RSI’s southward inclination suggests falling momentum, which could lead to a subsequent red candlestick for BNB.
FAQ: Binance’s 28th Quarterly BNB Burn
What is the purpose of the quarterly BNB burn?
The quarterly BNB burn aims to reduce the total supply of Binance Coin (BNB) in circulation, increasing its scarcity and potentially driving up its value. This process aligns with Binance’s strategy to manage the token’s supply and support its long-term value proposition.
How many BNB tokens were burned in the latest quarterly event?
In the 28th quarterly burn, 1,643,698.8 BNB tokens were destroyed, totaling approximately $971 million. This burn is part of Binance’s auto-burn mechanism, which operates independently from the Binance centralized exchange.
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