You use Binance every day, but do you really understand BNB?
In this round of bull market, it quietly broke its previous high, while many altcoins are still lying flat...
There are many mysteries surrounding it: for example, Binance has long stopped buybacks, yet BNB continues to undergo deflationary burns at an astonishing rate!
🤔 Why can it be so stable?
The key lies in the distribution— the top ten addresses hold 86% of the total supply! In comparison, the top ten BTC addresses hold only 5.5%, and ETH holds 61%. Who are these 'whales'? Actually, over half of them are addresses controlled by Binance: cross-chain bridge reserves, exchange cold wallets, team burn addresses... The BNB that truly circulates in the market may be less than 10%.
Therefore, BNB's price surge is particularly 'capital-efficient': limited circulation and strong control lead to stable increases, which is not without reason.
📉 What does deflation rely on?
1️⃣ Quarterly automatic burns: Calculated based on the cryptocurrency price formula, an average of 2 million coins burned each quarter;
2️⃣ Real-time burns of on-chain transaction fees: 10%-20% of gas fees are directly sent to the black hole;
3️⃣ Occasional special burns (such as the previous Token Hub vulnerability incident).
The coins burned by the team are not purchased from the market but are part of their locked holdings, so it does not directly lead to buying pressure, but can reduce potential selling pressure.
🚀 How do we view the future?
Two points of interest:
First is the 'link between cryptocurrencies and stocks'. Institutions like BNB Network Company have begun to purchase large amounts of BNB (buying $160 million in August), aiming to hold 5%-10% of the circulating supply. Traditional capital entering the market may continuously bring in buying pressure.
Second is Binance's business expansion. For example, the newly launched RWA product RWUSD, which earns interest from U.S. Treasury bonds and pays dividends daily, represents a massive combination of traditional finance and crypto. If the exchange is strong, BNB will not be weak.
⚠️ But there are risks as well:
BNB is too reliant on Binance as its 'big leg'. Once the exchange faces a black swan event, BNB will be the first to suffer.
The activity level of the public chain ecosystem is far less than that of ETH/SOL, with fewer developers and insufficient on-chain innovation.
💎 Thus, BNB is like a 'central enterprise stock' in the crypto world—stable, but not decentralized enough. How much have you allocated? Let's chat in the comments!
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