Binance has announced the completion of its 25th quarterly BNB burn, with the community now bracing for bullish price action.
The company’s quarterly burn program has been running since October 2017, when it was introduced as a mechanism to eliminate 100 million BNB tokens (equivalent to half of its total supply) from circulation.
Binance Burns $453 Million Worth of Tokens
Binance’s official X (Twitter) account announced:
“#Binance completes the 25th Quarterly #BNB Burn!
2.14m #BNB has been burned ”BNB burn announcement. Source: X (Twitter)
The 2.14 million BNB tokens are equivalent to over $453 million based on the current market price. The company decides the amount of the BNB to be burned through the token’s price and the number of blocks generated on the BNB chain.
Read more: What Is BscScan? A Guide to Using The Blockchain Explorer
This BNB burn also includes 314.69 tokens burned through the company’s Pioneer Burn program. If active users of the BNB chain can prove that they mistakenly sent the BNB tokens to the wrong address, Binance may cover up the losses for some users and consider the lost tokens as a part of the BNB burn program.
The previous quarterly BNB burn was conducted on July 19, when Binance removed 1.99 million BNB tokens from supply.
Community Hopes for Positive Price Action
It is a commonly known fact that if the supply of the asset decreases while demand remains the same, or if demand increases, the price of that asset is bound to surge. Through the BNB burn, Binance is aiming to decrease the supply of the token.
Hence, community members anticipate an increase in the BNB token’s price. However, the BNB price action is testing an important support zone.
Read more: Cryptocurrency Trading Courses Tailored for Beginners
On the weekly time frame, $205 has been a major support for the BNB token since February 2021. In the time period of over two and a half years, the BNB coin’s weekly candle never closed below the support of $205.
But currently, the token is repeatedly testing the $205 level. If there is a weekly close below the support, it could potentially cause a capitulation for the BNB investors.BNB/USDT, Binance. Source: TradingView
Do you have anything to say about BNB quarterly burn or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or X (Twitter).
For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.
The post Latest Binance Burn Sees Nearly $500 Million Worth of Tokens Removed from Supply appeared first on BeInCrypto.