Binance burns $38 million in fourth quarter nearing prior high from 2017
As part of their quarterly burn, Binance has burned 2.2 millionBNB representing 1.1% of total supply, worth over $38 million. The $2 million increase from Q3 marks the fourth consecutive quarter of growth and brings their total burn amount to nearly $250 million. While in previous quarters Binance burned tokens equal to 20% of profits it now burns an amount "based on overall trading volume" in a three-month period.
The growth in burned tokens was fueled by the launch of Binance Futures last year which now regularly exceeds spot volume. Binance founder CZ believes futures were the largest catalyst for coin burns in Q4 and will continue to be in subsequent quarters. The exchange has also significantly increased its fiat-to-crypto trading pairs, launched Binance U.S. and their native Binance USD stablecoin.
Why it matters
- Binance has built one of the most profitable businesses in crypto and this consistent growth will enable the firm to continue the rapid expansion of its product offerings in its pursuit of becoming afull-service crypto bank.
- Adding a token on top of a centralized business allows Binance to expand its existing set of stakeholders. This opens up the path to gradual decentralization which enables them tocompete with existing open finance applications.
