BNB Chain recently conducted its 31st quarterly token burn, destroying 1.57 million BNB tokens worth $916 million. However, the massive burn failed to significantly impact BNB’s price, reflecting the broader bearish sentiment in the crypto market.
31st Token Burn: $916 Million Destroyed
On 16 April, BNB Chain completed its latest token burn as part of its strategy to reduce the total circulating supply to 100 million tokens. The auto-burn mechanism, which adjusts the burn amount based on BNB’s price and the number of blocks generated on the BNB Smart Chain (BSC), led to the destruction of 1.57 million tokens.
Following this event, BNB’s circulating supply stands at 140 million tokens, marking steady progress toward its long-term supply reduction goal.
How the Auto-Burn System Works
BNB’s burn mechanism is designed to make the token scarcer, potentially boosting its price over time. The auto-burn system considers BNB’s market price and block generation activity, dynamically adjusting the burn quantity each quarter. Once the supply hits 100 million tokens, these burns will cease.
By reducing supply, token burns theoretically encourage long-term holding (HODLing), especially if demand increases. However, the latest burn has had a muted impact on market sentiment and price.
Minimal Price Reaction Amid Bearish Sentiment
Despite the significant burn, BNB’s price has remained relatively stable, rising only 0.85% since the event. At press time, the token was trading at $583.51, still over 25% lower than its all-time high (ATH) of $788.84 reached in December 2024.
The lack of a substantial price surge highlights the broader bearish trend in the crypto market, which continues to weigh on investor confidence.
BNB’s Position in the Crypto Market
With a market capitalisation of $85 billion, BNB remains the fifth-largest cryptocurrency globally. While its price performance has been lacklustre, the ongoing burns reinforce the commitment to supply reduction, laying the groundwork for potential long-term value.
For now, the subdued reaction to the burn reflects a cautious market awaiting stronger catalysts to break the downtrend.
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