BNB Chain Burns Over 1.6M BNB in 30th Quarterly Burn. Will Price Follow?

The BNB Foundation, a non-profit firm behind the layer-1 BNB Chain, has completed its 30th quarterly token burn. According to an official announcement, the latest burn permanently removed over 1.6 million BNB worth approximately $1.1 billion from the coin’s circulating supply.

As a reminder, token burn refers to a method of erasing a portion of a cryptocurrency from its circulating supply. The burn involves sending an assigned amount of cryptocurrency to a burn address, rendering it inaccessible or unobtainable. 

This deflationary mechanism employed by several blockchain networks and decentralized finance (DeFi) projects aims to reduce the total number of available units while increasing market demand for an asset.

While various blockchains have different timeframes for token burn, BNB Chain implements theirs once every quarter. This process involves sending BNB coins to an unusable “blackhole” address where they are inaccessible. By decreasing the supply, the blockchain aims to create a more valuable asset for holders.

BNB Chain Implements 30th Quarterly Burn

The quarterly burn has eliminated 1,634,200.95 BNB from circulation. The total value of the burn is valued at $1.12 billion based on current market price.

The process was divided into two parts: 1.5 million BNB burned via the Auto-Burn mechanism, and 110,000 BNB burned in the  Pioneer Burn Program.

Introduced in 2020, the Pioneer Program focuses on returning funds to the users who sent tokens to the wrong addresses and have not received them back on the Binance Smart Chain (BSC). 

Following the latest burn, over 142 million BNB coins are remaining with more than 42 million BNB expected to be burned in the future. 

Impact on BNB’s Price

Although the amount of the latest burn is significant, the price of BNB did not register any increase. As of press time, BNB’s price was trading at $686, which represents a 1.64% decrease in the last 24 hours. 

Still, BNB holders hope that the reduced supply will help raise the asset’s price in the long run. In the past, BNB token burns have led to notable price increases but there is no guarantee that the latest burn will mirror previous performances.