We all know that $BNB (Binance Coin) is the native cryptocurrency of the Binance ecosystem. Since its launch in 2017, it has reduced its circulating supply through regular quarterly destructions, aiming to increase prices through reduced supply. On January 23, 2025, $BNB completed the 30th quarterly destruction, destroying approximately 1.63 million BNB (worth about $1.16 billion). Let's discuss the short-term and long-term impacts of this event on BNB's price.
According to BNB Burn History, the 30th destruction involved 1,634,200.95 BNB, with a total estimated value of approximately $1.16 billion based on the price at the time. The total supply is approximately 144 million BNB.
According to basic economic principles, when supply decreases and demand remains unchanged, prices should rise. The 30th destruction reduced supply by approximately 1.13% (1,634,200.95 / 144,000,000 * 100%). Assuming demand remains unchanged, prices should increase by about 1.13%. For example, if the price before destruction was $650, it should theoretically rise to about $657.395.
Historical trends and market reactions
Historical data indicates that BNB's quarterly destruction has varying impacts on price:
The first destruction had no significant impact on price.
The second destruction shows a 'buy the rumor, sell the news' pattern, with prices rising before destruction and falling afterward.
Subsequent destructions sometimes show no significant response and sometimes exhibit short-term fluctuations.
According to What is BNB Auto-Burn?, BNB employs an automatic destruction mechanism that adjusts the destruction amount based on price and block generation, enhancing transparency and predictability. This means the market may have anticipated the 30th destruction, reducing immediate price shocks.
Short-term impact analysis
The current date is March 16, 2025, approximately two months after the destruction. According to price predictions and historical data (such as BNB Price Prediction 2025-2030), BNB's price fluctuated between $600 and $700 at the beginning of 2025. Assuming the price before destruction was around $650, there was no significant change in price after destruction, indicating that the short-term impact may be negligible. This is consistent with historical patterns, as the market may have already factored in the destruction.
Long-term impact analysis
In the long run, a continuous destruction mechanism enhances the scarcity of $BNB by reducing supply. According to Binance Coin Price Prediction, if demand remains stable or grows, a decrease in supply could drive prices up. Additionally, the destruction may enhance investor confidence, especially as the Binance ecosystem expands (such as Binance Chain and smart contract applications).
Market conditions and psychological effects
Market conditions at the beginning of 2025 show BNB's price relatively stable, with a 24-hour trading volume of around $1.4 to $2.3 billion (according to BNB Price Today). The destruction may create a psychological effect, reinforcing investor trust in the long-term value of BNB, but may be offset in the short term by other market factors (such as overall cryptocurrency market trends).
Conclusion
The immediate impact of BNB's 30th quarterly destruction on price may be minimal, as the market may have already anticipated this move, resulting in limited price changes. In the long run, a continuous destruction mechanism may have a positive impact on price by reducing supply, enhancing scarcity and investor confidence.
Perhaps one day, you'll open the app and see $BNB ATH 1000, what do you think? #内容挖矿
