Binance Records Largest Dollar Value Quarterly BNB Burn; $600 million
April 19, 2021
Last week, Binance released a blog post that it had burned about 1.1 million Binance Coin (BNB) tokens, valued at roughly $600 million, in its most recent quarterly burning event. The event brought the total supply of existing BNB to 169 million from 170 million.
Coin burning is a process Binance employs to mop up tokens from circulation to reduce the total supply of the coin, thereby lowering inflationary pressure and increasing demand. As expected, token burning leads to a positive surge in the value of BNB as scarcity of coin sets.
According to the behemoth exchange, the burned 1.1 million tokens represent 0.65% of its total supply, a significant reduction from the last quarterly burning at 1.81%. While the tokens burnt this quarter is relatively smaller than previous burnings, it has the highest dollar value in history. This is because of the recent surge in the price of the BNB.
With the recent emergence of the Binance smart chain (BSC) and the DeFi industry, BNB has exploded by over 2800% over the past year. Its meteoric rally has helped the cryptocurrency claim a market valuation of $90 billion at its peak, making it the third-largest cryptocurrency behind Bitcoin (BTC) and Ethereum (ETH).
Key BNB Levels to Watch — April 19
Binance is currently on a recovery path from its recent 18% plunge to the $428 region. The bullish traction has placed the cryptocurrency back above the ascending trendline as the BNB struggles to clear the $550 resistance.
That said, BNB stands the chance of falling to the $500 support again if bulls fail to clear the $550 resistance over the coming hours. A break above the $550 level should cement the bullish recovery for the third-largest cryptocurrency.
Meanwhile, our resistance levels are $550, $575, and $600, and our key support levels are $500, $483, and $450.
Total Market Capitalization: $2.09 trillion
Binance Coin Market Capitalization: $80.5 billion
Binance Coin Dominance: 3.8%
Market Rank: #3
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