$24 million worth of BNB tokens burned since the BEP-95 upgrade, should you buy BNB?
- BNB’s trading volume saw an increase of 26% in the last 24 hours.
- 50,000 BNB has been burned since the BEP-95 upgrade.
- This can lead to an increase in the value of the BNB token.
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The BNB BNB/USD token is a cryptocurrency intended to be used as a means of trading and paying the fees on the Binance cryptocurrency exchange.
It was initially created in July of 2017 and was called Binance Coin, prior to the renaming to simply being known as BNB.
The token initially worked through the utilization of the Ethereum blockchain, with the token standard ERC-20, prior to becoming available on Binance’s own blockchain.
Token burning as a catalyst for growth
On February 22, we covered how Binance brought Netmarble into NFTs.
According to BurnBNB, through an official Twitter post published on February 23, 2022, 50,000 BNB ($24,488,000) have been burned since the BEP-95 real-time burning upgrade.
This BEP-95 upgrade was initially launched on November 30, and with it, a new real-time burning mechanism for the BNB token was introduced.
As a result of this, a fixed ratio of the BNB gas fee collected by the validators is burned within each block.
The goal of this continuous burning of tokens is to make them deflationary. To make the BNB token this way, Binance switched from quarterly burning to EIP-1559 or the BNB Auto-Burn Upgrade.
Should you buy BNB (BNB)?
On February 24, 2022, BNB (BNB) had a value of $337.9.
To truly get a perspective as to what kind of value point this represents for the BNB token, we will be going over it’s all-time high value, alongside the performance the token showcased throughout the previous month.
The all-time high value of BNB (BNB) was on May 10, 2021, when the token reached a value of $686.31. The token was $348.41 higher in value at its ATH, or by 103%.
When we go over the token’s performance throughout the previous month, BNB (BNB) saw its highest point of value on January 3, when the token reached a value of $531.72.
The lowest value the token decreased to was on January 24, when it got to a value of $342.24. The token saw a decrease in value of $189.48 or by 35%.
With all of this in mind, we can expect the BNB token to reach a value of $350 by the end of March, assuming it breaks past the $340 price barrier. However, if the token decreases under $330, then it might be worth reconsidering.