Binance Coin (BNB) Hits High, One Day Before Token Burn

Binance Coin is hitting ATH value as the 14th quarterly BNB token burn will occur and is expected in less than 48 hours.

Binance Coin is the world’s leading cryptocurrency exchange token. Over the past 12 hours, BNB has seen an impressive increase in dollar value. From a low of around $40.9 to a high of $45 for a total intraday profit of 10%.

Interestingly enough, the coin is also inches away from its all-time high of $45,162.

This comes hours before the company undergoes its scheduled 14th BNB token burn. This should take place in less than 48 hours, as confirmed by the CEO, Changpeng Zhao.

What is BNB Token Burn?

Every quarter, as described in the token whitepaper, Binance goes through a burn process where it buys and destroys BNB worth 20% of the company’s quarterly profits. So far there have been 13 burn bnb events.

The last one happened in October 2022, and it happened in the third quarter of that year. This means that in less than 48 hours, the company will burn tokens worth 20% of its profits for the final quarter of 2022. In October, Binance burned a total of 2,253,888 worth of bnb tokens worth around $68 million at the time.

Prices have increased substantially since then and so has trading volume, especially given the market spike in the last quarter of 2022. This may have a positive impact on Binance’s earnings, which could lead to more substantial token burn. It will be interesting to see if the price will react or not or if the event has been factored into the current price.

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