Description
TL;DR Breakdown Binance Coin is surging sharply. BNB coin burn planned in a few days, Binance Smart Chain has overtaken Ethereum network, Binance Coin seems to have already started registering some major wins after Binance Exchange revealed plans for a coming BNB coin burn to take place in the next few days. In a recent … Read more
TL;DR Breakdown
- Binance Coin is surging sharply.
- BNB coin burn planned in a few days,
- Binance Smart Chain has overtaken Ethereum network,
Binance Coin seems to have already started registering some major wins after Binance Exchange revealed plans for a coming BNB coin burn to take place in the next few days. In a recent tweet that has since attracted a lot of attention on Crypto Twitter, Binance’s founder and CEO Changpeng Zhao intimated that the management is planning to burn some BNB.
When you burn coins, they are taken out of circulation forever. It increases the value of the remaining coins.#BNB 🔥 in a few days!
Not financial advice!
— CZ 🔶 Binance (@cz_binance) April 11, 2021
Demand Vs supply
In the tweet, CZ gave a brief explanation of what happens when coins are burned. Basically, market forces of demand and supply set in to re-balance the equation in order to account for the resulting shortage. The lesser the coins, the higher the price. That means that when some coins are burned, the remaining ones gain in value due to the increasing demand.
Interestingly, BNB has already embarked on a sharp surge that has seen it break its ATH price. At the time of this writing, Binance Coin is trading at around $589 – according to data on CoinMarketCap. If this trend continues, there’s no telling just how high the crypto will surge, especially considering that the coin burn is yet to happen.
Binance Coin against Ethereum
A lot of people have, of late, been complaining about the increasing transaction fees on the Ethereum network, and the rise of the Binance Smart Chain seems to have given them a louder voice. It appears that transacting on the BSC is way cheaper than working with the Ethereum network. An update by the Binance Chain Community claims that BSC can now process up to 5 million transactions on a daily basis, a figure that’s about four times what the Ethereum network handles.
The gains scored by the BSC will ultimately trickle down to Binance Coin which has recently proven to be quite a competition against ETH. BNB is currently the third largest cryptocurrency in the market, with upwards of $90 billion in total market. This figure will continue to increase as the BNB price surges.