Binance destroyed $792 million in BNB, how will the BNB token’s value shift?

By: Milko Trajcevski
Milko Trajcevski
Milko leverages his passion for cryptocurrencies and teaches investors something new each day. During his spare time, he loves… read more.
on Jan 18, 2022
  • Binance implemented the first-ever BNB token auto-burn program and removed 1.6 million BNB.
  • These tokens were worth $792 million in circulation.
  • The number of tokens burned is gained through a formula based on the total number of blocks produced on BSC.

Binance Coin BNB/USD is the native cryptocurrency token that is used in and is used by the Binance Exchange. It has the BNB symbol and was initially based on the Ethereum Network.

Over time, however, it switched to its own native blockchain known as the Binance Smart Chain (BSC).

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The token burn as a catalyst for growth

On January 13, we covered how Binance launched CELO and ERN locked staking, with APY up to 100%.

The cryptocurrency exchange, Binance, on January 17, implemented its first-ever token burn of the BNB token through an auto-burn program. This, in turn, removed over 1.6 million (approximately 1,684,387.11 BNB) BNB tokens which were worth $792 million.

The BNB Auto-Burn formula calculates how many tokens to remove from circulation, in accordance with the BNB’s price, which reflects the supply and demand, as well as the number of blocks produced for the last quarter.

This is a move away from the previous methodology used to burn tokens, which was based on the revenue generated from the Binance exchange.

Changpeng Zhao (CZ), co-founder and CEO of Binance, said in an official announcement that “The implementation of the BNB auto-burn is a natural next step in BNB’s journey and will help the BNB community grow through providing greater autonomy, transparency, and predictability.”

Should you buy Binance Coin (BNB)?

On January 18, the Binance Coin (BNB) had a value of $465.2.

To get a better perspective as to what kind of value point this is for the BNB token, we will go over its all-time high value alongside its performance throughout the previous month.

The all-time high value of the BNB token was on May 10, 2021, when the token reached a value of $686.31. Here, we can see that at its ATH point of value, the token was higher by $221.11 or by 47% in value.

When we go over the performance of the token throughout the previous month, we can see that, on December 1, the BNB token had its highest point of value at $647.8.

Its lowest value point, however, was on December 15, when the token decreased in value to its lowest point of the month, at $503.51. This gives us an indication that the token has decreased in value by $144.29 or by 22%.

With that in mind, at $465.2, BNB can be a worthwhile buy if it manages to break the $470 price barrier, after which it can climb up to $480 by the end of February 2022. If the token dips under $460, however, it might be worth reconsidering.

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