Binance witness second most profitable quarter, burns $36.7M in BNB

Binance has recently burned a total of 2,061,888 BNB tokens amounting to approximately $36.7 million. BNB token is Binance’s native cryptocurrency. Every quarter, Binance burns its native cryptocurrency, equivalent to 20% of its profits. Binance plans to continue this action until there are just 100 million BNB left. Until now, more than 14.5 BNB has been burned, indicating that around 85.5 million is yet to be destroyed. 

The practice of token burning increases a coin’s scarcity to promote higher valuations. This year’s quarter burn was 54% more valuable than last year, which was worth $23,838,000. Binance quarterly profits increased from $119.19 million in Q2 of this year. Binance CEO Changpeng Zhao said that the total value of the tokens burns “represents significant growth over the last quarter.”

In a tweet, Larry Cermak, Director of Research for The Block, wrote:

“Since Binance burns 20% of profits, we can deduce that it made approximately $186 million in profit in Q3.” 

He further added that “this is the second-highest quarterly profit” that the exchange has ever reported. Cermak also remarked that Binance’s cumulative revenues exceeded $1 billion. Indeed, Binance’s rise in profits was unpredicted, given the current market conditions:

“Binance’s spot volume dried up in the last few months. The market has been dead and yet Binance just burned the equivalent of the second-best quarter in existence.”