Binance Completes Seventh Quarterly Coin Burn; BNB Price Knocking at $20
As the supply of Binance Coin (BNB) is reduced, prices are attempting to break the $20 barrier.
Binance, an exchange constantly expanding its influence, has completed the seventh quarterly coin burn since its inception. The coin burn is a tool to limit the supply of Binance Coin (BNB) and a way to distribute the earnings of the exchange to holders of the asset.
The coin burn arrives at the end of a rather volatile quarter, which may have seen the digital asset markets bounce off the recent bottom and start a new season of recovery. The most recent coin burn reflects the increased dollar-denominated price of the asset, marking a quarter of significant recovery on the markets.
Binance performed the smallest coin burn so far, taking out of circulation 829,888 tokens. The dollar value of the burn is $15.6 million however, a significant increase over the last quarter of 2018. The biggest coin burn for Binance happened in the quarter ended December 2017, when peak market prices and trading activity led to record results.
The CEO of Binance, Changpeng Zhao, also pointed to a quarterly recovery, in which the exchange has a central role.
“Timing-wise, the BitTorrent (BTT) Launchpad sale was a turning point for BTC. The super successful sale of BTT restored a level of confidence in the market and reactivated interest in token projects,” explained Zhao in the recent blog post commenting on the quarterly results.
For the exchange, the next quarter will continue with hard work on expansion projects, including the launch of a decentralized exchange. Binance Launchpad will continue to offer vetted token sales, while warning investors that the sales are not a guarantee for fast returns.
Following the news of the token burn, the price of BNB held above $19 despite the general sell-off this Tuesday. BNB traded at $19.49 as of 12:30 UTC, also recovering against Bitcoin (BTC). The trading volumes on Binance exchange are once again above $1 billion in 24 hours as general digital asset trading is picking up, especially on leading Asian exchanges.