Binance cryptocurrency exchange burns part of BNB coins on a quarterly basis. The fifteenth BNB destruction was the largest ever in dollar terms – the cost of burned coins was $ 595 million.
A total of 1,099,888 BNB coins were burned. This is not the largest quarterly destruction in terms of the number of coins, but the largest in terms of the value of assets burned. In the IV quarter of 2020, 3,619,888 BNB were burned, but their value at that time was only $ 165 million. In just the quarter, the coin rate increased 12 times.
The total amount of BNB at the time of the launch of the cryptocurrency was 200 million, but at the moment there are 169.5 million coins circulating on the market. Thus, the exchange burned 15.3% of the issued BNB. In the future, the site management plans to burn coins until their number is reduced to 100 million.
According to Binance CEO Changpeng Zhao, several factors contributed to the rise in the BNB rate. These are the development of the Binance Chain ecosystem, the launch of new projects on the Binance Smart Chain (BSC) and the boom in the DeFi industry, many of which are launched on the Binance Smart Chain. More than 450 projects are currently running on the BSC blockchain.
“BNB is used in hundreds of different applications across multiple platforms and projects in the cryptocurrency ecosystem,” said the CEO of Binance.
Messari analysts have previously warned that BSC validators are centralized and controlled by Binance Chain.
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