$971 million worth of BNB burned, will BNB price take off?

On Monday, the BNB Foundation announced the execution of its 28th quarterly BNB token burn. The mechanism burned over 1.64 million BNB tokens (approximately worth $971 million) in the routine process.

BNB is the native coin of the BNB Chain ecosystem that supports its Web3 ecosystem. After the mainnet launch back in 2019, the token made its transition from the Ethereum Network to the BNB Chain. The foundation utilizes the auto burn system to moderately reduce the tokens’ supply to 100 million.

1.6 million BNB tokens burnt

28th quarterly BNB token burn recorded a slight decline from the last similar event. The 27th quarterly burn report depicted that 1,944,452.51 BNB tokens (approximately worth $1.17 billion) were sent to the dead wallet forever. However, this quarter saw a burn of 1,643,698.8 BNB tokens.

The report mentioned that the foundation Auto-burn lays out an independently auditable, objective process for them. However, this burn event happened directly on BSC due to the ongoing BNB Chain Fusion. The mechanism stands free from Binance.

Also read: Is BNB ready for the bull run?

This is unlike the previous burn events, as due to the ongoing BNB Chain Fusion, this quarter’s burn and future burns will happen directly on BSC. The burn tokens are being sent to the wallet named “blackhole.”

The report also mentioned that the chain implements a real-time burning mechanism which is based on gas fees. More than 234K BNB tokens have been burnt since the introduction of BEP95.

BNB gets a tough contest from Solana

Data provided by Coinmarketcap shows that despite the burn routine being in place, BNB price registered a marginal drop in the last 90 days. It is still up by 92% on the year to date (YTD) period after recording a massive surge in March 2024.

BNB is trading at an average price of $600, at the present time. Its circulating supply stood over 145.9 million with a market cap of $87.5 billion. It is still down by 16% from its all time high of $720.67, recorded on June 6, 2024.

BNB has managed to maintain its position as the 4th biggest cryptocurrency while Solana (SOL) is trying to close in the margin. SOL gained more than 34% in the last 30 days while BNB price rose by around 2% during the same period. This move has helped Solana attain a $83 billion market cap. Its price is up by 2.64% in the last 24 hours, and it currently trades at an average price of $178.76.