The world’s leading cryptocurrency exchange token by means of market capitalization, Binance Coin, is approaching its ATH. This happens hours before the company goes on with its 14th scheduled BNB token burn.
BNB Price Eyes ATH
Binance Coin is the world’s leading cryptocurrency exchange token. Over the past 12 hours, BNB saw an impressive increase in its dollar value. It went from a low of about $40.9 to a high of $45 for total intraday gains of 10%.
Interestingly enough, the coin also came inches away from its all-time high value at $45.162.
It’s also worth noting that the cryptocurrency has since retraced a bit, and it’s now trading at $44.09.
This comes hours before the company goes through its 14th scheduled BNB token burn. It should take place in less than 48 hours, as confirmed by the CEO of the exchange, Changpeng Zhao.
Within the next 48 hours ish. https://t.co/JmM0P45SlO
— CZ 🔶 Binance (@cz_binance) January 17, 2021
What’s a BNB Token Burn?
Every quarter, as described in the token’s whitepaper, Binance goes through a burning process where it buys and destroys BNB worth 20% of the company’s quarterly profits. So far, there have been 13 events.
The last one took place back in October 2020, and it accounted for the third quarter of that year. This means that in less than 48 hours, the company will burn tokens worth 20% of its profits for the last quarter of 2020. In October, Binance destroyed a total of 2,253,888 worth around $68 million at the time.
The price has increased substantially since then and so have trading volumes, especially given the surge in the market in the last quarter of 2020. This might have had a positive impact on Binance’s revenue, which could lead to a more substantial token burn. It’s interesting to see whether or not the price will react or if the event has already been factored in the current price.