World’s leading crypto exchange, Binance, recorded the highest quarterly volume evident by the amount of coin burn for Q1 2020. According to the original Whitepaper, every quarter, it burns 20% of its profits. The estimates suggest a profit higher than $262.33 million in the Q1 of 2020.
Update: According to sources, Binance has changed the metrics for burn last year from 20% profits to burning tokens w.r.t. trading volume. Hence, the burn metrics indicate that volumes are record high since BNB release. The title has been changed accordingly as well.
At the 11th quarterly BNB Burn, notes,burned 3,373,988 , worth 52.4 million . The Exchange
This is the biggest BNB burn ever recorded, in terms of both BNB and fiat volume.
The previous high was recorded in the last quarter of 2019 with profits’ totalling $190.
In accordance with the previous metrics, the cumulative profits crossed the $1 billion mark after its 9th ‘coin burn’ in Q3 of 2019. It seems to have added 452.33 million as the total exchange profit now reaches $1.487 billion.
Apart from leading the crypto-space in spot markets, the exchange has now gained adequate dominance in the derivatives market as well. While trading volume is an ambiguous metric, the profits from the derivatives market should also add to the total.
Furthermore, Binance recently launched options trading on the exchange which will help in the growth of the business.
The coin burns are bullish for the Binance [BNB] coin as well, as it results in a decreased supply. The token is designed to burn 46.6% of its total supply until it reaches 100 million tokens.
Currently, the price faces resistance from the $17.3 from the 200-Day Exponential Moving Average (EMA) on a daily scale. On a weekly scale, it faces resistance from the 50-period EMA around the same level at $17.6.
With respect to Bitcoin [BTC], the price has broken above the moving averages forming higher highs and higher lows. Nevertheless, it faces resistance from the 0.00229 BTC range resistance.
How do you think the exchange and its token will perform in the rest of 2020? Please share your views with us.
Source: Coin Gape