Binance Just Burned Nearly $600 Million Worth of BNB Coins

Binance just burned about $600 million worth of BNB coins which it does periodically but today was a record so let’s read more in our latest Binance coin news today.

Binance just burned over $594 million worth of its own BNB token in a move that marked the biggest burn in the exchange’s history. This wasn’t the case of the exchange trying to pump its own coin or setting money on fire but this mechanism is an integral part of how BNB works which contributed already to the coin becoming the third biggest cryptocurrency on the market.

As the wallet data shows, Binance burned over 1,099,888 BHB this morning which is a move that CEO CZ commented on saying:

Imagine burning half a billion dollars, wait, don’t imagine. It’s real. #BNB https://t.co/rMFbiufFSG”

This was the 15^th burn in the BNB history and scheduled as a part of the January to March 2021 burn which took over $595,314,330 worth of coins out of circulation forever, decreasing the overall supply of the coins from 170 million to 169 million. BNB’s original supply was capped at 200 million tokens in an ICO and at that time, 100 million tokens were released to the public during the ICO while 80 million were allocated to the founding team about 20 million to angel investors.

The burning mechanism was put in place to stabilize the monetary value of the coin over the years as more coins were released in the market and BNB got even more utilized. It also aims to burn 100 million tokens more. Intended as a way for traders to pay fees on Binance and to trade other coins using the pairing, the coin grew to a $77 billion market cap in a little over 3 years in existence.

It started out as an ERC20 token and later moved to the binance Chain. The latter doesn’t support smart contracts like ETH does which is why it culminated in the launch of the binance Smart Chain in 2020 which is a move that gave the coin even more use cases in the DeFi space and DEXs. The BSC has seen much success since then as it reached 4.9 million daily transactions which are 300% more than ETH’s ATH in daily transactions.

In the reports, Zhao claimed that:

 “BSC played a significant role in growing the number of active dApp wallets (+639% in Q1 across all blockchain platforms), bringing in an average of 105,000 daily active wallets, compared to 458,000 daily active wallets for the entire industry.”