finished Binance cryptocurrency exchange programmed quarterly burn.

The latest Binance burn is the 14th where Binance has destroyed a total of 3,691,188 BNB coins, valued at about $165.8 million, according to an announcement published yesterday.

Details of the BNB cryptocurrency burning process:

According to Changpeng Zhao, CEO of Binance, about 2.4 times the cryptocurrency has been burned in terms of total value compared to the previous event.

Burning complete. About 2.4x the previous in terms of fiat. Blog article coming soon in multiple languages.

16 million have also been opened #BNB. They were supposed to open in July 2020. We just forgot. They are moved to a team icon with the title, the same title as before.

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– CZ 🔶 Binance (cz_binance) Jan 19 2021

Binance burns large amounts of BNB every three months, which helps reduce the available supply of the coin, which in theory, could boost the coin’s price if demand remains constant versus supply shrinks.

A few hours before the burning, Larry Cermak, director of research at The Block, predicted that the last burning would be the largest yet.

He said at the time that this could be explained by Binance’s spot and futures trading volumes during the last quarter of 2020.

His tweet came with the following:

Binance will burn the largest amount of BNB cryptocurrency

Why?

Because spot trading volume on Binance increased by more than 50% and futures volume increased by 140% in Q4 of 2020.

Quarterly volume reached an all-time high of about $471.5 billion in the fourth quarter of 2020.

Cermak explained that Binance has become the preferred platform for futures trading, after its trading volume on BitMEX has fallen, and the volume of futures trading on Binance in December alone exceeded the third quarter of the whole of 2020.

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We will see a massive BNB burn today. By my estimation, it’s probably twice as big as the previous quarter’s high.

why? Binance’s spot trading volume is up more than 50% and futures volume is up 140% in the fourth quarter. pic.twitter.com/iuBBtOxkin

– Larry Cermack (lawmaster) Jan 19 2021

CZ, CEO of Binance, said earlier that the increasing volume of BNB burning represents significant growth, given that the amount of BNB burned each time depends on the number of transactions made on the platform each quarter.

Accelerate the burning of digital currency BNB:

CZ stated in a post related to the recent burn that the platform is accelerating the next burn, in order to reduce the overall supply of BNB faster.

And he wrote:

Although that’s an impressive amount for a three-year-old startup, it would take nearly 27 years to finish the burn.

So, we thought it was time to speed things up a bit.

CZ acknowledged that this means that the burning process will no longer be directly linked to the platform’s quarterly revenue.

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He added:

It may still be inferred that our returns are below a certain number, but the burns will remain escalating at best.

Just a day before the burn, the price of the cryptocurrency BNB reached a new all-time high of $46.21, according to CoinGecko.

This could be a sign of further price hikes as the coin-burning process usually gives the BNB price a boost by reducing the overall supply.

According to Binance’s initial plan, the platform will continue its quarterly burn until there are 100 million BNB left or 50% of the total number of cryptocurrencies ever issued.

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