10 February 2021 11:45, UTC

Anna Martynova

According to CoinMarketCap data, the price of Binance Coin (BNB), the native token of the crypto exchange of the same name, exceeded $148 for the first time in history. At the time of this writing, BNB is trading at around $139, roughly a 50% gain on the day. The rise in the token’s price also pushed BNB’s market capitalization to $21 bln, making it the seventh largest cryptocurrency.

The Binance crypto exchange burns a certain amount of BNB tokens every quarter to reduce its total supply. This subsequently leads to an increase in the deficit of the coin and can raise its price. The most recent token burn on January 19 was the largest to date. Back then, Binance destroyed a total of 3,691,888 BNB worth $165.8 mln. Today, this number of tokens is estimated at about $370 mln.

Binance Smart Chain bypassed Ethereum in the number of transactions per day. Binance CEO Changpeng ZHAO attributes this to lower fees compared to Ethereum. Someone believes that the reason for the increase in the number of transactions is fictitious transactions used to increase the volume of transactions.

Image: Medium

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