In the crypto world, token burning is like stock buybacks in traditional finance — and it can be a powerful signal.

Projects burn tokens to reduce supply, increase scarcity, and reward holders. It’s a long-term play, not just hype.

🧯 How Does Token Burning Work?

Token burning is the process of permanently removing a portion of a cryptocurrency’s supply by sending it to an inaccessible wallet (burn address). This helps:

  • 🔻 Reduce circulating supply

  • 💰 Increase token value over time (basic supply-demand)

  • 🧠 Show commitment from the team


🔥 Popular Projects That Burn Tokens

  • BNB – Binance burns BNB quarterly based on trading volume.

  • SHIB – Massive burns supported by the community for price impact.

  • LUNC – Terra Classic community-led burns to revive token interest.

  • CAKE – PancakeSwap regularly burns to balance inflation.

  • ETH – With EIP-1559, a portion of every transaction fee is burned.

📈 Why It Matters for Traders

Token burns create positive market pressure. When combined with rising demand, this can lead to explosive price movements — especially for low-cap coins with limited supply.

$BNB $SHIB $ETH


Pro tip: Watch for burn announcements or fixed-burning schedules. They often spark interest and price action.