Binance Burns $484 Million in 24th Quarterly BNB Burn

Crypto exchange Binance has completed its 24th quarterly BNB burn event amidst a significant decline in BNB price over the past 3 months.

Binance Burns $484 Million in 24th Quarterly BNB Burn

As announced on July 19th noon, cryptocurrency exchange Binance conducted its 24th quarterly BNB burn event, coinciding with the celebration of its 6th anniversary.

Specifically, during the Q2 2023 burn, a total of 1,991,854 BNB tokens were destroyed, amounting to $484.1 million USD at current exchange rates.

Comparison with Previous Burns

In comparison, during the 23rd burn, Binance eliminated 2,020,132 BNB tokens, valued at approximately $676.7 million USD. This indicates a slight decrease in the number of BNB tokens burned but a decrease in USD value by nearly one-third.

Learn more: What is Binance?

This reduction in value is a consequence of BNB's nearly 30% decline over the past three months, triggered by negative global news surrounding Binance, notably the lawsuit from the U.S. Securities and Exchange Commission (SEC).

CEO of Binance Changpeng Zhao added that despite the BNB burn process being completed, additional large transactions will be executed to "scatter coins across multiple addresses." The reasons behind such transactions have not been disclosed in previous burn events.

Regular BNB Burns

BNB burns are scheduled quarterly by Binance, as outlined in the BNB whitepaper. The exchange actively reduces the BNB supply until the total circulation reaches 100 million coins.

Since early 2022, Binance has implemented the BNB Auto-Burn mechanism, which calculates the number of tokens burned based on the BNB price and the number of BNB Chain blocks generated in the quarter, rather than relying on the exchange's revenue. As a result, the amount of BNB burned each quarter has stabilized around 1.8 - 2 million BNB, showing less fluctuation compared to previous years.

On July 18th, Binance also successfully hosted the Arkham Intelligence (ARKM) Launchpad event, attracting over 114,000 participants who locked up $2.4 billion USD worth of BNB.

Additionally, BNB faces the risk of a liquidation worth over $200 million USD on the Venus protocol if the price drops to $220 USD. This amount was sealed following the BNB Bridge attack in October 2022, with the BNB Chain community still deliberating on appropriate resolution measures.