BNB Chain Burns Nearly $971 Million USD in 28th Coin Burn

BNB Chain has burned nearly $971 million USD worth of BNB tokens in its 28th coin burn, with minimal reaction from BNB prices.

BNB Chain burns $971 million USD in 28th BNB coin burn

The BNB Burn is a periodic event conducted by Binance every three months since the platform's inception. The exchange actively reduces the supply of BNB tokens until reaching a total of 100 million tokens from an initial 200 million.

Since early 2022, Binance has transitioned to the BNB Auto Burn mechanism. Instead of burning based on exchange revenue, Binance now calculates the number of coins burned using a formula based on the price of BNB and the number of BNB Chain blocks created during the corresponding period.

On midday, 22/07/2024 (Vietnam time), BNB Chain announced the completion of its 28th BNB burn, totaling nearly $971 million USD in tokens.

Specifically, this burn involved 1,643,698 BNB at an average token price around $590 USD. Compared to the previous burn, both the quantity of BNB burned and the total value in the 28th burn were lower.

Statistics of quarterly BNB burns by Binance

This may be explained by the relative decrease in BNB price compared to the 27th burn on 24/04, when BNB was trading around $600 USD and continued to rise to a new ATH of $716 USD in early June.

1-day chart of BNB/USDT pair on Binance at 01:30 PM on July 22, 2024

Despite the lower burn value compared to the 27th burn, the 28th burn marks the second-highest USD value burn in the entire history of operations. The third-largest was the 18th burn, which saw over $906 million USD worth of BNB permanently removed.

The design of BNB Burn has proven to be an effective method to reduce supply and thereby enhance the token's value. Moreover, Binance's ability to maintain its leading position despite ongoing legal challenges over the past two years underscores the strength and attraction of the exchange.

Under CEO Richard Teng's leadership, despite some controversial product strategies, it is undeniable that his efforts have helped Binance navigate through challenging times.

Most recently, the SEC has "stepped back" from investigating Paxos - BUSD, dropping allegations of securities violations.