The world’s leading cryptocurrency exchange by trade volume, Binance, has completed its 11th quarterly burn of the Binance Coin (BNB). The latest burn sets the exchange on a new record as it is the largest BNB burn in the history of Binance, both in terms of BNB and USD value.
As usual, Binance burned 20% of its quarterly profit, amounting to 3,373,988 BNB ($52.4 million), which is 1.69% of BNB supply. This suggests the exchange hit a new record high in its quarterly profit since it launched in July 2017.
The Q4 2019 token burn saw the exchange burn a total of 2,528,767 BNB (worth around $33.2M at that time). The figure suggests the exchange made around $194 million in profit during the last quarter of 2019. This further implies that Binance saw a 35% increase in profit over the first three months of 2020.
“This burn, which represents activity across Binance spot, margin, and futures exchanges, as well as the various solutions, divisions, and partners that use BNB, from January to March 2020, permanently took away about 52.5 million USD worth of BNB out of circulation. This is the biggest BNB burn ever recorded, in terms of both BNB and fiat volume.” the exchange said.
BNB price overview: slightly bullish
It is a popular opinion that token burns lead have a positive effect on the price of a cryptocurrency. The rationale for this is because the burns are designed to reduce the supply of a digital assets. With increased demands and reduced supply, a price rally is expected to follow.
However, with the general cryptocurrency markets in good shape, it is hard to say if the burn is having any effect on the BNB price. At the time of writing, the Binance coin is trading at $16.05, representing a 1.4% increase on the daily chart.
The exchange will continue to burn 20% of its quarterly profits to reduce the BNB in circulation until the total supply of the token hits 100 million.
Binance Continues to BUIDL
Binance continues to take the crypto industry by storm. The exchange is always BUIDLing, investing, and looking for ways to improve customers’ experience while pushing cryptocurrency to mainstream adoption.
In a recent report from CoinGecko, Binance dominated the spot trading market with up to 70% dominance and at the same time, the exchange dethroned BitMEX in the derivates market in the first quarter of 2020. This was perhaps the reason for the increased profit in Q1.
Source: Coinfo mania