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Binance Burns Over $550 Million Worth of BNB in 15th Quarterly Burn

Key highlights:

  • Binance has completed its 15th BNB burn
  • The exchange permanently destroyed almost 1.1 BNB tokens worth a total of over $550 million
  • Binance saw 260% growth in volume and 346% growth in users in Q1 2021

Binance burns $566 million worth of BNB tokens

Cryptocurrency exchange Binance has completed its 15th quarterly burn of BNB tokens, permanently removing just under 1.1 million BNB from circulation.

Thanks to BNB’s massive price increase in Q1 2021, the latest burn is by far the biggest BNB burn ever in terms of the dollar value of the tokens burned. At the current price of around $514, 1,099,888 BNB translates to roughly $566 million. The previous record was held by the Q4 2020 burn, where $165 million worth of tokens was destroyed.

In terms on the amount of BNB tokens burned, however, the latest burn is actually the 4th smallest. The 6 burns preceding it all saw over 2 million BNB tokens being burned.

What is a coin burn?

Binance Coin has been on a crazy run in 2021 so far, and is currently posting a year-to-date performance of +1,312%. At the beginning of the year, the token was trading at around $38. After a series of rallies, BNB hit its all-time high at $633 on April 12.

The cryptocurrency bull run in the first quarter of 2021 helped boost trading volumes on most exchanges, and Binance was a major beneficiary.

Create Binance Account

Another factor that helped BNB go on its historic rally was the rise of Binance Smart Chain (BSC), a smart contracts blockchain platform that uses BNB as its native asset. BSC saw a large influx of users thanks to the high transaction costs on Ethereum, which led DeFi users to look for cheaper alternatives. 

As per usual, Binance CEO Changpeng “CZ” Zhao shared his thoughts to accompany the token burn. According to CZ, the exchange saw 346% growth in terms of users in the first quarter:

“In Q1 2021, Binance recorded growth of 260% and 346% in traded volume and users respectively, while the total market value of cryptocurrencies recently surpassed $2 trillion. This indicates accelerated crypto adoption by everyone around the world, from casually engaged individuals who trade every now and then to institutions that keep crypto in their treasuries and even engage in using crypto for their operations.”

CZ also said that the exchange’s customer support staff is currently “completely overwhelmed” due to the massive user demand. The Binance CEO concluded the post by saying that improving customer support process is currently the exchange’s number one priority.

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