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BNB is deflationary amid $1.65 billion burn event
Binance founder Changpeng Zhao (CZ) praised BNB’s deflationary capabilities following reports of a three-month burning streak. According to an official advertisement On X (formerly Twitter), 1,441,281 BNB were burned in the last 90 days, valued at $1.65 billion at current prices.
Burning tokens refers to permanently removing coins from circulation by transferring them to a wallet without any access. By reducing the number of tokens in circulation, burning increases scarcity while propping up prices in a deflationary manner.
BNB’s latest burn data comes from its quarterly auto-burn system, which aims to “aggressively” reduce token supply toward the ultimate goal of 100 million tokens in circulation. CZ praised the 33rd quarterly burn of BNB tokens on the BNB Smart Chain (BSC), citing it as proof of a strong deflationary model among cryptocurrencies.
To put the burn event into perspective, the latest quarterly burn translates to $12,500 in tokens burned per minute or $183.33 per second. In addition to the automatic burning feature, there is also real-time burning, which removes a portion of the gas fees from each transaction.
“About $11,000 is burned every minute,” CZ said on X. “I hadn’t even put it in that perspective before.”
Over the past three months, BNB witnessed notable price movement, rising to set an all-time high of over $1,300. While several factors may have contributed to BNB’s meteoric rise, a key element revolved around scheduled quarterly burning.
Following the latest quarterly burning announcement, the BNB price rose 5% over the last day to trade at $156. With a 17% gain over the past month, BNB ranks as the fifth-largest cryptocurrency by market capitalization, ranking below XRP after previously surpassing the Ripple-backed asset.
An impressive price rally has fueled increased institutional interest in BNB, with China Renaissance planning a $600 million treasury move to join CEA Industries and Nano Labs.
Since its launch, Binance has burned nearly 63 million BNB tokens, worth over $70 billion. Given the impressive numbers, cryptocurrency investor Umair Nauman described BNB tokenomics as “the most aggressive deflationary model in the history of cryptocurrencies.”
