Crypto exchange Binance announced on Friday that it burned over 1 million BNB tokens worth about $ 595 million in its most recent quarterly burn.
This 15th quarterly BNB burn is the highest amount realized by the exchange in dollars. This is because the price of BNB increased more than 16 times during the quarter from $ 35 to $ 600.
“Burn” refers to the process of permanent removal of a cryptocurrency from circulation. When Binance launched BNB in 2017, it committed to burn a total of 100 million BNB, half of its supply.
When the supply of something decreases, it tends to increase its price and benefit its owners. In this case, Binance and BNB holders provide benefits.
Binance has burned 15.3% of the total BNB supply of 200 million tokens to date, according to The Block Research. Approximately 35% of the tokens will be burned in the next quarters and years.
Binance burns BNB every quarter based on the trading volumes of the previous quarter.