According Binance's official announcement, the exchange was able to burn 3,373,998 BNB in its eleventh quarterly burn. So far, this has been the biggest BNB burn, closely followed by its fourth burn with 2.5 million BNB tokens.
Binance burns BNB tokens as a way to pay holders instead of distributing dividends. In essence, token burning should eventually raise its price. In addition, it also means that other investors might be interested in BNB as its offering shrinks over time, which means it is a good long term investment.
Binance has stated that BNB burn events they will occur every quarter until 50% of total BNB is destroyed. Each recording event is calculated based on the number of trades performed at Binance within the last 3 month period. Binance has been burning BNB tokens since October 2017.
As mentioned above, Binance burns more BNB tokens if there is more trading volume on the exchange. Despite the recent Coronavirus pandemic, Binance still managed to see higher trading volumes and user visits. According to Binance, the exchange is seeing 5 times more traffic.
While economic activity has slowed in many nonessential sectors and the bitcoin price was unable to escape the slump along with share prices, we have seen a sharp increase in cryptocurrency activity."
Binance notes that generally when Bitcoin's price falls its trading volume suffers as well, however this time around Bitcoin has seen much more trading volume after the collapse and has managed to recover almost completely in less than 1 month.
New Binance partnerships and updates drive BNB price
Binance not only burned BNB tokens, but also announced the purchase of CoinMarketCap. Recently, Binance also announced the launch of the Binance Smart Chain, which is intended to create a smart chain that enables projects in the Binance ecosystem to build decentralized applications. compatible with Ethereum and based on EVM.
Binance also launched its Korean crypto exchange based on the Binance Cloud to access the Korean cryptocurrency market. It is no surprise that Binance continues to be the most popular crypto exchange in the world considering its activities.