Would BNB Increase In Value As Binance Burns More Than 2 Million BNB Coins?
Per multiple reports, Binance — the leading cryptocurrency exchange in the world, has burnt 2 million BNB coins during its 22nd successive crypto asset burn. Binance also confirmed this report on Tuesday.
Binance’s next move is to drastically reduce the BNB in circulation to a hundred million through its Auto-Burn process. Surprisingly, the latest BNB burn by Binance took time to elicit a response from traders.
Binance’s 22nd BNB Token Recurring Burn Mechanism
Per an official announcement by Binance on Jan. 17, Binance burned 2,064,494.32 BNB coins. The most recent burn included 7,181.03 BNB from the PBP (Pioneer Burn Program).
According to the Binance report, the burning took place around 8:00 AM universal time, and in total, over $620 million worth of BNB tokens were sent to cold wallets. Binance has taken more than 2 million BNB out of circulation as one of the measures to boost BNB’s price.
At the moment, the circulating supply of BNB tokens is 157,904,427 BNB. With the most recent burn, Binance has now burned a total of 44.095 million BNB tokens since the inception of this burning process.
Binance plans to reduce the total quantity of BNB in circulation to 100,000,000 via an Auto-Burn method. Firstly, the Auto-Burn mechanism determines how much BNB should burn. The mechanism uses the price of BNB and total blocks created through the BSC (BNB Smart Chain) to make its decision.
The projected value of the incoming burn, per the BNB burn portal, is 2,070,356.52. The most recent data indicates that the 23rd consecutive BNB burn is expected to burn a higher quantity of BNB tokens.
The price of BNB usually rises almost immediately after the completion of the BNB token burn event. However, the most recent burn did not result in a quick price surge.
Current on-chain data shows that the price of BNB has only increased by approximately 1.4% during the past 24 hours and is currently exchanging hands at $301.94. Moreover, its trade volume has dropped by two percent during the past 24 hours, suggesting that traders are becoming less interested.
Binance Unveils ‘Binance Mirror’ for Whale Clients
Meanwhile, on Monday, Binance announced the launch of “Binance Mirror,” an off-exchange solution for settlement. The service allows institutional investors to secure their assets by connecting Binance Custody with their approved cold wallet.
Their assets will then be copied into their Binance trading account. According to Binance, the assets will remain secure only if the mirrored position stays open on Binance since the owner has the right to liquidate the position at any moment.
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