The price of Binance Coin (BNB), the local token of the crypto exchange Binance, exceeded $ 100 for the first time.
At the time of writing, BNB is trading at $105, up 50% on the day. It hit an all-time high of $113 at around 19:30 Turkish time. The recent rise in its price has brought BNB’s market cap to $16 million, making the coin the 7th largest cryptocurrency.
Crypto exchange Binance is burning a certain amount of BNB to reduce its total supply. This then causes the coin’s increasing scarcity and may be driving the price higher.
The most recent coin burn on January 19 was the supply reduction event where the largest scale ever was burned. That day, Binance cost $165.8 million; destroyed a total of 3,691,888 BNB. Today, this figure is over $370 million.
Binance CEO Changpeng Zhao used the following words about the latest BNB burn:
“While this is an impressive metric for a three-year-old startup; At this rate, it would have taken us about 27 years to finish burning. So we thought it was time we stepped up a bit.”
He added that in the future, the scale of the burns will not depend on the quarterly income of the stock market as before.
Meanwhile, $200 million USDT stablecoin was transferred to Binance last weekend, coinciding with BNB’s 25% price increase at the time.
Other reasons behind the rise of Binance Coin (BNB)
According to a tweet by CEO Changpeng Zhao, Binance recorded its all-time high traffic on January 8th:
“The truth is, systems will suffer here as we grow exponentially. . It’s not something we can’t fix quickly, but it’s not perfect either.” As we previously reported as
Kriptokoin.com , Binance, along with other major exchanges, was struggling to grapple with enormous demand after Tesla announced that it had purchased $1.5 billion worth of Bitcoin.
According to a news on U.today, another factor in the rise of BNB is Binance’s growing family of works. Earlier in February, the largest cryptocurrency exchange PayPal introduced a beta version of its rival, Binance Pay.
Moreover, Binance Chain is now emerging as a major competitor for Ethereum.