- Binance conducted its 24th quarterly burn mechanism as its proceeds to bring the total BNB supply under 100 million BNB tokens.
- Based on the BNB burn portal, the estimated value for the next burn is 2,097,345.77 BNB. The BNB price consolidates at $250.
The world’s largest crypto exchange Binance burnt a large number of its native BNB tokens, during its recent quarterly BNB tokens burn mechanism. As per data on the BNB portal, Binance burned a total of 1.99 million BNB tokens as part of its 24th quarterly burn mechanism.
Every quarter, Binance conducts the BNB token-burning process as it seeks to bring the BNB supply to under 100 million using its BNB Auto-burn procedure. Currently, the circulating supply for Binance’s native cryptocurrency is 155,848,103 BNB.
On Tuesday, July 18, Binance made an announcement on Twitter about the quarterly BNB burn happening today. According to the Binance burn portal, approximately 1.99 million BNB tokens will be burned in the 24th quarterly BNB token burn using the BNB Auto-Burn procedure. This burn also includes BNB tokens burned through the Pioneer Burn Program.
The data suggest that Binance will burn nearly 2 million BNB tokens, which are valued at around $619 million. As a result, Binance will reduce the circulating supply of BNB tokens by another 2 million.
Binance’s BNB Token Burning Mechanism
As said, Binance has embarked on a mission to burn its native BNB tokens thereby driving up its value. So far, the crypto exchange has conducted a total burn of 48 million BNB tokens. To reduce the total circulating supply to 100,000,000 BNB, the exchange utilizes an Auto-Burn protocol. This mechanism calculates the amount of BNB to be burned by considering the BNB price and the number of blocks generated on the BNB Smart Chain (BSC) during the quarter.
On April 14, Binance conducted the 23rd quarterly BNB burn, where they burned 2,020,132.25 BNB tokens worth $542 million. At that time, the estimated burn for the 24th quarterly BNB token was 2,009,639.84 BNB. The actual number has been quite close to this.
Based on the BNB burn portal, the estimated value for the next burn is 2,097,345.77 BNB. However, current data indicate that the number of BNB tokens is likely to increase in the 25th quarterly BNB token burn.
Usually, the BNB price goes up after Binance conducts a quarterly BNB token burn. However, this time, the BNB price has remained stagnant around the $250 mark for over a month and there is a possibility that it may decline further. The BNB cryptocurrency has come under pressure, especially with the US SEC slapping a lawsuit against Binance last month in June.
As of press time, BNB is trading at $243 with a market cap of $37.9 billion. Recently, the BNB token has slipped to the fifth position with Ripple’s XRP recently overtaking it.
