$595 Million Worth BNB Gone... 15th Quarterly BNB Burn

about 3 years ago

Morning

Binance announced yesterday that it has burned 1 million BNB token worth around $600 million. This is the 15th BNB quarterly burn and is highest one in terms of $ value, since BNB appreciated almost 16 times this quarter dwarfing BTC and Eth.

Burning usually refers to buying back from the market and destroying the token to reduce its overall supply increasing the worth. However in Binance case, it burns tokens from team's treasury.

Yesterday's BNB burns marks 15.3% of BNB total supply burnt, as the company remains committed to taking 50% of the token supply(100 Million BNB tokens) out of circulation via upcoming quarterly burns.

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BNB coin has been quit a buzz in town as it outperformed all others with a staggering growth of 710%. Several factors can be attributed to this insane appreciation; overall cryptos bull run, growth of Binance Smart Chain(BCS), Coinbase IPO etc.

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To me the most important factor is Binance Smart Chain(BCS). BCS is a speedy and low cost alternate to Ethereum network which is currently plagued by congestion and whooping das fees. More and more projects(especially defi) seems inclined to prefer BCS over Ethereum. BCS has already proved it ability to handle heavy traffic as it reached 4.9 million daily transactions, which is 3x of Ethereum's all time high daily transactions. Moreover transaction costs are order of magnitude lower than Ethereum(just a few cents).
With 450+ projects already built on BCS and BNB fueling all the transactions, it is easy to understand BNB swelling. The pace defi world is growing, BSC continuing to attract new exciting project and upcoming quarterly BNB burns it wouldn't be surprising for BNB to continue outperforming others.