— Binance (@binance) April 16, 2019
While the 7th burn is the lowest total amount of BNB removed from circulation, its dollar value is the highest since Q3 2018. This is due to the fact that BNB has significantly outperformed Bitcoin (BTC) over the period, meaning investors had to use less BNB for trading fees on the platform during the first quarter.
Given the extrapolation that the burn amount represents roughly 20% of Binance’s quarterly profits, the leading exchange likely brought in around $78 million in Q1 2019.
Following the latest token burn, which is typically a bullish event, Binance Coin has trade slightly higher and is now up 1.3% over the last 24 hours to $19.85, bringing the leading exchange token to a market cap of $2.8 billion.
This price action closely mirrors the AltDex Exchange Token Index (ALTEXC), a market cap-weighted benchmark index for the industry’s leading crypto exchange token, which is currently up 1.8% over the last 24 hours.
Moving forward, Binance believes BNB will continue to increase in value, driven by routine token burns and a growing number of use cases, including the company’s token launch platform and soon-to-launch decentralized exchange.
Announcement: Binance Completes 7th Quarterly BNB Burn
Image: Marco Verch / Flickr
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.