The BNB Chain has just concluded its quarterly burn with 1.99 million BNB coins burnt, equivalent to approximately $480 million.
This brings the total number of BNB burnt since the mechanism was implemented to 183,525.54, valued at a staggering $44 billion based on today’s price.
Burning refers to moving coins to a “burner” wallet where they can never be retrieved, effectively removing them from circulation.
The idea behind burning is to induce scarcity and increase the value of tokens in circulation.
According to the BNBBurn website, the project aims to eventually reduce the total supply of BNB from 202 million to 100 million.
From the time of writing, the auto-burn took place two days, eight hours ago. On the day of the burn, the BNB price performed poorly.
Despite pushing higher, bears were able to suppress the price to near its daily open price. However, the following daily candle was green, and the price has continued to push today.
While the immediate results of the auto-burn were still underwhelming, BNB has shown some strength, up 1.39% today.
Consequently, BNB has outperformed top cryptos like BTC and ETH, which are down 0.16% and 0.7% in the last 24 hours.
BNB’s price will likely benefit most when new liquidity enters the market as we head towards the Bitcoin halving.
The coin burn means there will be less supply for new buyers entering the market, potentially leading to a much higher BNB price.
However, Binance, the creator of BNB, has been scrutinised lately for its layoffs, departure of high-level Binance US staff members and ongoing legal proceedings in the US and Europe.
This could factor into why the recent BNB burn has only had a minor impact on its price.
3 Best Burn Mechanism Tokens to Buy
While burning can provide immense growth potential for cryptos, Binance’s ongoing internal and legality issues have raised concerns about the strength of BNB.
With that in mind, here are the three better alternative burn cryptos to buy now.
Burn Kenny is a new meme coin project based on the popular South Park cartoon character, Kenny.
Currently, the project is available in its presale, priced at $0.0001875. Despite launching just days ago, the meme coin community has widely embraced Burn Kenny, with its presale hitting $398K.
However, Burn Kenny is “super deflationary”, with 30% of its initial supply to be burnt gradually after its exchange listing.
The token burn will commence 24 hours after its exchange listings, with 10% of tokens being burned daily for three days.
On top of the 30% of Burn Kenny tokens withheld for burning, 40% will be available throughout the presale, and the remaining 30% are reserved for DEX liquidity. This ensures seamless trading while making Burn Kenny a truly community-owned project.
The name Burn Kenny is a play on words from the popular South Park phrase “They killed Kenny”. Analyst Jacob Bury has high hopes for the project, predicting it could 10x when it launches on exchanges.
Traders will be hoping that Burn Kenny can replicate the success of fellow South Park token Mr Hankey Coin, which saw almost 200% gains following its initial DEX listing last week.
With a hard cap of just $500K and already raising $398K, investors must be quick to buy Burn Kenny on presale before the token burn commences.
Another strong burning token is Shiba Inu. Currently, Shiba Inu is down 33% in the past year, potentially presenting a fantastic time to buy for a low price.
However, the price has been bullish over the past month, currently up over 8%.
Shiba Inu features a burning feature known as ShibBurn. The mechanism was created in 2022 and rewards users for burning their SHIB tokens.
In return for burning SHIB, users receive another Shiba Inu token called RYOSHI. The Ryoshi token is a deflationary meme coin aiming to give holders passive income.
According to the ShibBurn website, a whopping 410,651,915,306,989 SHIB from its 999,988,413,376,095 max total supply have been burnt.
Shiba Inu is also developing several new ecosystem upgrades, including an Ethereum layer two scaling solution, Shibarium. With this in mind, the ShibBurn mechanism could help significantly boost SHIB’s price as we enter the next bull market.
XRP is another cryptocurrency to boast a burn mechanism. On XRP’s Ripple network, a percentage of each transaction is burnt.
11,437,710.51 XRP have been burnt so far, and while this may not be significant in today’s measure, there is potential that the burn rate could increase in the future.
Due to XRP’s recent partial victory over the SEC, the coin price has spiked 56% in a month. Currently, XRP is trading at $0.77, after rejecting from $0.85 yesterday.
Despite its recent rally, XRP’s burn mechanism combined with its groundbreaking use case means it has plenty more upside potential.
XRP’s burn rate spiked in July, averaging around 8.2K tokens burnt daily. According to XRP lead developer Niel Hartner, this was due to a series of account deletions on the network.
However, with banks, institutions and even governments adopting XRP as a global bridge layer currency, the results of its burn mechanism could be colossal.