$1 billion in BNB will go to the bonfire in the next token burn
The BNB market is approaching a key event for its price. This is the quarterly burning of the cryptocurrency that was developed by the Binance exchange.
More than 1.6 million units of the cryptocurrency BNB, which is equivalent to almost 1 billion dollars (USD). As seen below, the event, which will take place starting in July, represents the 28th quarterly burn in BNB history.
At the moment, the exact date of the burning is unknown, although it will most likely be sometime in July. This is because They are usually in the month following the end of each quarter.
The previous quarterly burns were on April 24 for 1.9 million BNB; on January 17 for 2.1 million BNB; on October 16 of last year for 2.1 million BNB; and on July 19 for 1.9 million BNB.
The amount of coins that is burned on a quarterly basis is based on a mechanism called BNB Auto-Burn, which adjusts it based on the BNB price. Because the cryptocurrency saw a price rise this June to a new all-time high of $720, a smaller proportion will be burned than the previous quarter.
Why are cryptocurrency burns key to the price?
Periodic burning of BNB contributes to its price rise if your purchases grow. This is because it consists of removing coins from circulation, which reduces their supply, allowing demand to gain more strength. In this way, it makes it a more scarce and deflationary asset, something that is normally valued by investors.
In addition to doing this on a quarterly basis, the cryptocurrency also has another burning system that benefits its market. This consists of burning a fixed proportion of the gas fee of each block processed on its network, BNB Chain. This activity is carried out by the validators, in a similar way to what happens in Ethereum.
So far, a total of 54.4 million BNB have been burned. Meanwhile, as seen below, there are 147.5 million units of the cryptocurrency in circulation.
Currently, BNB is trading around $570, which is 20% of the new all-time high it recorded three weeks ago. With this setback, shown again in the lateralization range which it maintained mostly during the last four months, as the graph shows.
As CriptoNoticias reported, as long as Binance, the world’s largest exchange, continues to drive BNB adoption and contribute to regulatory compliance, the cryptocurrency could gain momentum, as happened last month. In addition, a breakout of the consolidation zone that bitcoin (BTC) had four months ago may contribute to the enthusiasm.
