Binance Engages in Burning Over 1.2 Million BNB Tokens

Binance Engages in Burning Over 1.2 Million BNB Tokens
  • Binance was involved in another token burn of over 1.2 million BNB tokens. 
  • The token burn doesn’t cause any price surge. 
  • Perhaps Bitcoin dominance might also be the reason for the price action.

Binance, a leading crypto exchange involved in another token burn of over 1.2 million BNB tokens. Moreover, the token burn is part of the deflationary procedure which indicates reducing the number of tokens in circulation. This indicates reducing the number of circulation tokens. However, this recent burn combines with the previous burn of 100 million BNB tokens. 

In line with this, the proposed 100 million token burns are considered as above half of the total supply of BNB which presently remains at 174 million, as per CoinGecko. Notably, this is the 16th token burn of the exchange. At the time of writing BNB trades at $282 with a 24-hour trading volume of $1,496,039,805. 

Binance Accelerates Burn Process

Binance plans to accelerate the burn process, or else it will take them 27 years to reach the 50% token burn. Moreover, in Q1 2021, Binance burnt over $595 million worth of BNB tokens. Even more, the percentage for the current token burn is not yet disclosed by the exchange.

Furthermore, unluckily the token burn doesn’t cause any price surge. Perhaps Bitcoin dominance might also be the reason for the price action. 

BNB-BTC Price Comparison (Source: TradingView)

The above chart shows the price comparison of Bitcoin and Binance Coin. It is clear that the BNB price only surges when the BTC price increases. Also, a price drop happens when the Bitcoin price drops.

All in all, Binance recently celebrated its 4th year anniversary. This celebration has happened in spite of the pressure it faces from the regulatory bodies around the world. Moreover, Binance also shut down operations in the UK proceeding with the discontinuance of services from its partners in the country. Also, Binance had to temporarily suspend deposits by UK crypto investors from the SEPA system. Two major banks, such as Barclays and Santander Bank also suspend facilitating deposits and withdrawals for their customers.

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Cryptocurrency and blockchain tech interest has enticed Carolyna to write for NewsCrypto. She made her personal mission to help non-crypto geeks to understand the technology with ease.