Binance Completes 22nd BNB Burn, Destroying $617 Million

On January 17, cryptocurrency exchange Binance announced the completion of its 22nd quarterly BNB burn, marking a significant increase in the value of BNB destroyed.

Binance Completes 22nd BNB Burn

In Q4 2022, Binance burned 2,064,494 BNB through its BNB Auto Burn mechanism. In USD terms, this equates to over $617 million, a notable increase from the previous quarter but still short of the record $900 million from the 18th burn a year ago.

Compared to Q3 2022, the value of BNB burned remained relatively stable, despite recent market upheavals, including the collapse of FTX and a wave of negative news impacting Binance and BNB prices.

Quarterly BNB burns have been a regular practice for Binance since the exchange's inception in 2017. The goal of these burns is to reduce the total supply of BNB from 200 million to 100 million. As of the latest update, the total supply of BNB stands at 157 million, with nearly 135 million in circulation.

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Since the beginning of 2022, Binance has transitioned from a revenue-based burn model to the BNB Auto Burn calculation, which uses the number of BNB Chain blocks and the average BNB price for a more transparent and predictable process.

In the recent quarter, BNB Chain experienced a significant security breach when its token bridge was attacked, affecting assets worth $586 million. The hacker managed to move around $100 million to other ecosystems like Ethereum, Avalanche, and Fantom, while the remaining funds were frozen and recovered by BNB Chain. Binance has stated that the lost funds will be gradually burned in future quarterly burns.