The BNB Chain has once again destroyed an impressive amount of Binance Coin (BNB). During the most recent token burn, no less than 1.44 million BNB tokens were permanently removed from circulation, worth over $1.65 billion. This step is part of a long-term plan to reduce the total BNB supply and make the token scarcer over time.

Why does BNB perform token burns?

A token burn is a process in which cryptocurrencies are deliberately “destroyed” by sending them to a so-called blackhole address — a wallet that no one can access. Tokens sent there are gone forever.

The BNB Chain performs such a burn automatically every quarter. The size of the burn depends on the current BNB price and the number of blocks produced during that period. This system operates fully independently from Binance Exchange and is completely transparent. In addition to these quarterly burns, a small portion of transaction fees on the network is also burned. Through this mechanism, more than 276,000 BNB have already been destroyed.

Total supply to be reduced to 100 million BNB

Since the burn program began in 2017, more than 64 million BNB have been removed. This means that around 137.7 million BNB are currently in circulation. The ultimate goal is to reduce the total supply to 100 million tokens.

With the current deflation rate of about 4 million BNB per year, that goal could be achieved within ten years. This deflationary model helps counteract inflation caused by staking rewards, where users earn new BNB by locking up their tokens.

Growing network, rising burn rate

Activity on the BNB Chain continues to grow steadily. New partnerships — such as with countries like Kyrgyzstan, which are integrating blockchain applications on the BNB Chain — are driving more network usage and higher transaction fees. More activity also means more tokens being burned. This could further accelerate the burn rate in the coming years. Binance founder Changpeng Zhao (CZ) has previously emphasized that BNB‘s strength mainly comes from “building and community efforts,” meaning the ongoing expansion of the ecosystem and user engagement.

How is the BNB price performing?

The BNB price has shown strong performance in recent months. In October, the token reached a new all-time high of $1,370, while in March it traded around $532 — an increase of more than 150% in half a year. After a short correction, the price now appears to be consolidating around $1,100. Analysts such as BitGuru see this as a sign that BNB is building strength for another breakout. “If the token breaks above the previous high, a price target of $1,500 could be next,” says BitGuru.

Beyond fundamental factors, technical analysis also paints a positive picture. Despite a slight weakening, the daily RSI (Relative Strength Index) has remained above average — indicating that buying pressure is still stronger than selling pressure. Similarly, the On-Balance Volume (OBV) — an indicator linking trading volume to price movement — did not drop below its key trendline in 2025. Together, these signals suggest that the technical outlook for BNB remains bullish.

On-chain data also supports this optimistic view. According to Arkham data, the net flow of BNB tokens to exchanges in October was negative. In other words, more BNB were withdrawn from exchanges than deposited. Even during the recent “flash crash,” major sell-offs did not occur — showing that BNB holders remain confident in the token‘s long-term potential.

Conclusion: deflation as a driver of growth

The combination of a structured deflationary policy, increasing network activity, and positive technical signals paints an optimistic picture for BNB. For long-term investors, this could be an interesting signal: a decreasing supply combined with growing demand has historically had a positive impact on price. Still, macroeconomic conditions and market sentiment remain important short-term factors to watch.

Disclaimer: This is not financial advice. Always conduct your own research and seek professional advice before making investment decisions.