Binance continues with its quarterly coin burns, and this time, it has burned the highest dollar value of BNB ever. The exchange has announced that today, it has burned 1 million BNB valued at $595 million. The reason for the high dollar value is the rising value of BNB that is currently at over $529 a coin.
— Whale Alert (@whale_alert) April 16, 2021
Since it started burning tokens in 2017, the exchange has burned 15.3% of the total token supply; the total supply of BNB is 200 million tokens. Going forward, Binance intends to burn another 35% of the total supply. The amount of BNB burned every quarter is usually dependent on the last quarter’s trading volumes.
Besides the regular coin burns, there are many other factors behind the rising BNB value. One of them is the growing number of developers building on its ecosystem. The Binance network has, over the years, experienced an explosion of DeFi projects.
Since their transaction fees are settled in the coin, the demand has been on the rise. On top of that, the exchange has started the tokenization of stocks. All this is a contributory factor to the growing value of BNB alongside the declining supply of tradeable tokens.