New Milestone from Binance Coin: How Will It Affect BNB Price?

The Binance exchange has completed another scheduled quarterly BNB burn and announced that the tokens will be burned automatically from now on.

Chinese crypto journalist Colin Wu announced that the Binance trading giant has completed another quarterly token burn. In the process, 1,335 million BNB was destroyed.

The journalist also shared a link to a blog post by Binance, noting that the exchange is now replacing its token burn process with a quarterly auto-burn.

Binance Introduces BNB Auto-Burn Feature to Destroy Fewer Coins

According to a blog post by Binance, the exchange management has decided to implement a new automatic burning procedure for Binance Coin after listening closely to the BNB and Binance Smart Chain communities.

Binance also burned 1.335 million tokens in its 17th quarter. This amount, which is equal to 739,059,842 dollars at the current BNB/USD exchange rate, was basically removed from circulation after the transaction.

According to the article, from now on, the amount of BNB to be destroyed during automatic burns will be slightly lower: 1.69 million BNB.

BNB is used to power transactions on the Binance Smart Chain (BSC) and participate in decentralized governance on BSC and a payment method by a number of businesses and crypto exchanges.

As outlined by Colin Wu, these BNB auto-burns will depend on the price of Binance Coin and the level of activity on the Binance Smart Chain, not on Binance’s profit as in the past.

Also, as soon as the total amount of BNB in ​​circulation drops below 100 million, the automatic burning of BNB will also stop.

What Will This Mean for Binance Coin and Binance Smart Chain?

The past may contain some clues as to the answer to this question. In fact, since the start of 2021, Binance Smart Chain and BNB have complemented each other in terms of growth and have maintained their bullish momentum for most of the year. There is also evidence that the BNB burn also helped push the price of the cryptocurrency higher earlier in the year.

As we mentioned above, due to the 17th burning last quarter, the circulating supply decreased by 1,335,888 BNB. In addition, Binance Coin replaced Cardano (ADA) as the third largest cryptocurrency by market capitalization after this development.

In short, we all have good reason to watch carefully how BNB holders respond to the auto burn. In short, this development could “spark” dramatic changes in the price of BNB.

Whales and Binance Move $32M BNB

As reported by crypto tracker Whale Alert, two major transactions have been detected in the last 10 hours, each carrying a little over 30000 BNB.

According to the crypto tracking platform, the owner of an anonymous wallet sent 30067 BNB (i.e. $16,657,118) to Binance. After that, Binance moved 30175,742 BNB (equivalent to $16,716,949) to an anonymous wallet.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.


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