Binance has completed its 16th BNB token burn. It has burnt BNB tokens over 1.3 million tokens, worth $393.6 million in value.

One thing I’m sure about is that #BNB will surpasses #ethereum one day.

Will that be in few month or few years… It’s coming#Binance #BinanceTurns4 #BinanceSmartChain pic.twitter.com/OqnzdmrhCk

— Herr Dr P. Bou Dib (@pBouDib) July 18, 2021

Binance Burns BNB Tokens Worth $393.6 Million

Following the introduction of its native token, the world’s largest exchange by trade volume committed to destroying half of its circulating supply (100 million BNB).

According to the first edition of BNB’s white paper, Binance used to burn 20% of its quarterly revenues. However, this is no longer the case as of last summer.

The number of tokens destroyed by Binance each quarter is determined by transaction volumes on its crypto-to-crypto network during the previous quarter, according to the most recent edition of the white paper:

“We will destroy BNB every quarter based on the trade volume on our crypto-to-crypto marketplace until we have destroyed 50% of all BNB.”

In the third quarter, Binance burned $595 million in BNB, a record. FTX CEO Sam Bankman-Fried anticipated that the exchange’s earnings will exceed $750 million in the third quarter.

Binance does not publicly disclose the percentage of Q2 burn, therefore the percentage of Q2 burn is unclear.

Binance addressed the issue in a January blog post, saying that the “expedite burn” was necessary to significantly speed up the process. Otherwise, the previously indicated goal of destroying half of the token’s total circulating supply would take 27 years to complete.

There Is No Price Increase

Binance makes the remaining native tokens scarcer by permanently removing them from circulation.

While the massive token burn is undoubtedly positive for BNB, the cryptocurrency hardly moved in response to the announcement. According to the Binance US exchange, it is now trading for $302.

Nonetheless, Binance Coin is expected to be one of the best-performing cryptocurrencies in 2021. Despite being down 56% from its May peak, it is still up a whopping 753% since the beginning of the year.