Cryptocurrency exchange Binance has finished its quarterly token burn, destroying a total of 3,691,888 Binance Coin (BNB), worth roughly $165.8 million, according to an announcement published today.
According to Binance CEO Changpeng Zhao, around 2.4 times more tokens were burned this time in terms of fiat value—compared to the previous event. Binance burns large amounts of BNB every quarter, helping to reduce its available supply—which, in theory, can boost its price if demand stays steady.
As Binance’s CEO Changpeng Zhao stated previously, the growing scale of burns represents “significant growth,” since the amount of BNB burned each time is based on the number of trades performed on the exchange per quarter. (The burn used to be officially tied to the exchange’s revenue but mention of this was removed from the whitepaper).
Just a day prior to the burn, the price of BNB reached a new all-time high of $46.81, according to crypto metrics platform CoinGecko. This could’ve been a sign of anticipation since token burns usually give BNB’s price a boost by decreasing its total supply.