Binance Coin Sets a New ATH Surpassing $600 Ahead of The BNB Quarterly Burn
The growing anticipation for the 15th Binance Coin burn led to a highly volatile trading day in which the token surged to yet another all-time high of roughly $640 before dumping by over $100 in minutes. Interestingly, the enhanced fluctuations resulted in over $125 billion in BNB liquidated in hours.
15th Binance Coin Burn Incoming
Initially, as stipulated in BNB’s whitepaper, the token goes through a burning process every quarter in which Binance buys and destroys BNB worth 20% of the company’s quarterly profits.
However, back in January 2021, the company moved to a so-called “accelerated burn” rate which aimed to reduce the time it will achieve its goal of burning 100 million BNB down to five to eight years. However, they won’t reveal any information as to what percentage of the quarterly revenue the burn comprises going forward.
With this said, the previous burn – the 14th one, was a record-breaking event where the leading cryptocurrency exchange burned 3,619,888 tokens. In USD terms, it was just shy of $166 million.
As Q1 2021 ended in March, the exchange is preparing for its 15th BNB burn. The company’s CEO, Changpeng Zhao (CZ), highlighted the development on Twitter yesterday, implying that when tokens are “taken out of circulation forever,” it tends to increase “the value of the remaining coins.”
When you burn coins, they are taken out of circulation forever. It increases the value of the remaining coins.#BNB 🔥 in a few days!
Not financial advice!
— CZ 🔶 Binance (@cz_binance) April 11, 2021
BNB Skyrockets to a New ATH at $640
It’s safe to say that BNB has been among the best performers since the start of the year. While bitcoin has “only” doubled its value to $60,000, Binance’s native crypto has skyrocketed by a four-digit percentage in the same timeframe.
Binance Coin entered the new year at $40, and it took just over a month to break the first round-numbered milestone at $100. Fast-forward just two weeks, and BNB traded above $330.
After some stagnation in March, though, the cryptocurrency resumed its bull run in the past few weeks. Following a couple more consecutive all-time highs, BNB surged once more today and reached its latest record of $640. This meant a yearly increase of about 1,500%.
However, its price saw massive turbulence after the ATH and plummeted by more than $100 in minutes. Furthermore, it bounced off, added around $50 as news broke that Binance will launch commission-free tradable stock tokens. At the time of this writing, BNB has somewhat calmed down at around the $570 mark.
This enhanced volatility led to over $125 million in liquidations in roughly an hour, according to Bybt data. Just for comparison, the BTC liquidations were about $50 million in the same timeframe.
