Binance Crypto Exchange Records Highest Quarterly Volume

By Nivesh Rustgi
Published April 18, 2020 Updated April 18, 2020
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Binance Crypto Exchange Records Highest Quarterly Volume

By Nivesh Rustgi
Published April 18, 2020 Updated April 18, 2020

World’s leading crypto exchange, Binance, recorded the highest quarterly volume evident by the amount of coin burn for Q1 2020. According to the original Whitepaper, every quarter, it burns 20% of its profits. The estimates suggest a profit higher than $262.33 million in the Q1 of 2020.

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Update: According to sources, Binance has changed the metrics for burn last year from 20% profits to burning tokens w.r.t. trading volume. Hence, the burn metrics indicate that volumes are record high since BNB release. The title has been changed accordingly as well. 

At the 11th quarterly BNB Burn, Binance burned 3,373,988 BNB, worth 52.4 million USD, at the present rate of $15.55 per token. The Exchange notes,

This is the biggest BNB burn ever recorded, in terms of both BNB and fiat volume.

The previous high was recorded in the last quarter of 2019 with profits’ totalling $190.

binance coin token burn
Binance [BNB] Coin Token Burn
In accordance with the previous metrics, the cumulative profits crossed the $1 billion mark after its 9th ‘coin burn’ in Q3 of 2019. It seems to have added 452.33 million as the total exchange profit now reaches $1.487 billion.

Apart from leading the crypto-space in spot markets, the exchange has now gained adequate dominance in the derivatives market as well. While trading volume is an ambiguous metric, the profits from the derivatives market should also add to the total.

Furthermore, Binance recently launched options trading on the exchange which will help in the growth of the business.

Price Analysis

The coin burns are bullish for the Binance [BNB] coin as well, as it results in a decreased supply. The token is designed to burn 46.6% of its total supply until it reaches 100 million tokens.

Currently, the price faces resistance from the $17.3 from the 200-Day Exponential Moving Average (EMA) on a daily scale. On a weekly scale, it faces resistance from the 50-period EMA around the same level at $17.6.

With respect to Bitcoin [BTC], the price has broken above the moving averages forming higher highs and higher lows. Nevertheless, it faces resistance from the 0.00229 BTC range resistance.

bnbbtc 1 day chart
BNB/BTC 1-Day Chart on Binance (TradingView)

How do you think the exchange and its token will perform in the rest of 2020? Please share your views with us. 

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Nivesh Rustgi
1181 Articles
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com

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