Binance the world’s largest crypto exchange by trading volume burnt another batch of its native token BNB under its 16th quarterly burn event. The crypto exchange burnt 1,296,728 BNB worth $393 million. The 16th quarterly burn event saw a decline of 33% in the value of the tokens being burnt from the last quarter.
The last quarterly burn came in April that saw the exchange burn BNB tokens worth more than $600 million, even though the volume or number of tokens being burnt was less, the high price of the BNB token made the burn value significantly high. At the time of the 15th quarterly BNB burn, the price of the native Binance token was trading at $540. Many believe the one-third decline in value could be because of the declining profits.
The 16th quarterly burn event also unlocked 16 million additional BNB that were allocated to the teams at the start and are now being moved to their addresses. The official notice also mentioned that none of these newly unlocked BNB were ever sold.
As per white paper, the remaining locked team BNB are now unlocked and have been moved to the team address. The Binance team has never used or sold a single BNB from the team allocation so far, other than burning.
BNB Burn Fails to Move Token Price
The quarterly burn event by Binance has historically proven to be bullish for the native Binance Coin due to the deflationary nature, however, the recent event failed to ignite any bullish momentum for the BNB as it continued trading in the price range of $300-$305.
The fourth-largest cryptocurrency by market cap is down 56% from its May ATH of $690 and currently trying to hold its position above $300. BNB is one of the biggest gainers this bull season, rising from being a utility token on Binance to become the fourth-largest cryptocurrency.
BNB started the year just under $40 and started to rise towards the end of February and saw a massive upswing in March when Ethereum’s gas fee problem was at its peak. The price saw a major correction in May right after touching an ATH, and since then it has traded around $300.