Towards the end of 2021, Binance introduced a program designed to replace the quarterly burn plan that existed. This program called BNB Auto-Burn aimed to provide greater transparency and predictability to the BNB community. Now, we learn that the largest crypto exchange platform has carried out yet another token burn. Several million dollars worth of BNB are definitely out of the circulating supply of the crypto. This is one of the largest quarterly BNB burns, in terms of amount burned in fiat currency.
Combustion in accordance with the BNB Auto-Burn procedure
On October 13, Binance crypto exchange announced having completed its 21st quarterly burn of tokens BNB. He specified that the operation was carried out following the BNB Auto-Burn procedure, which he had presented on December 22, 2021. During this 21st quarterly burn, 2,065,152.42 BNB were burned. This number of tokens represents an amount of 547 million dollars.
Binance has precise that the last quarterly burn included 4,833.25 tokens of burnt BNBs. The operation was carried out in accordance with the Pioneer Burn program that the exchange had introduced in September 2020. It must be said that, in the past, Binance had made a commitment to burn 20% of its earnings per quarter. At the same time, it appears that the crypto exchange could have earned $2.7 billion in the third quarter of 2022, with the recent burn.
What was the impact of the massive token burning?
Admittedly, the amount of BNB tokens burned is significant, but it has not affected the stability of the markets. Indeed, the recent combustion does not seem to have caused a considerable impact on prices BNB tokens.
BNB continues to trend lower, albeit in a gradual fashion. This downward trend is also general. It is observed on all crypto markets. However, everything can change from moment to moment.
In the first quarter of last year, Binance had achieved its biggest ever BNB burn. At the time, he had burned nearly $600 million worth of tokens BNB. Analysts estimated that this burn could earn him more than $750 million. Recently, the crypto exchange burned 2,065,152.42 of tokens BNB, which is $547 million. However, this massive burn failed to cause a huge impact on BNB prices.
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