The BNB Foundation, a non-profit organisation supporting the development of the BNB Chain, has announced the completion of the 32nd quarterly burn of the Binance Coin (BNB).

According to a blog post by the organization, the latest burn event removed 1.595 million BNB from the asset’s circulating supply. The total includes the actual tokens burned and some coins removed via the Pioneer Burn Program, which helps users recover their lost BNB.

BNB Chain Completes 32nd Burn

The burned coins were worth approximately $1.024 billion at the time of completion. BNB now has a total supply of 139.2 million following the latest event. The last burn reported in mid-April totaled $916 million.

BNB Chain initiated the auto-burn program in December 2021, aiming to reduce the total supply of BNB to 100 million. Initially, the network tied the burns to Binance’s quarterly profits and trading volume on the centralized exchange.

However, this auto-burn mechanism determines the amount of BNB to burn by evaluating the number of blocks produced on the BNB Chain on a quarterly basis and the average price of the asset. This ensures transparency and predictability.

After the BNB Foundation sends the burned tokens to a blackhole address, it reports the figures quarterly. The organization states that this quarter’s burn and future ones will be conducted directly on the BNB Smart Chain (BSC) due to the BNB Chain Fusion. The Fusion is an initiative that seeks to streamline the BNB Chain ecosystem by migrating the BNB Beacon Chain’s functionalities to the BSC, thereby retiring the former.

Will BNB Rally?

Based on demand and supply laws, these quarterly burns could positively impact the price of BNB. With the aim of reducing the asset’s circulating supply, increased demand for BNB could trigger a significant and sustainable rally for the coin.

Some institutions are already purchasing large amounts of BNB, with more likely to follow as crypto adoption expands. Last month, the Hong Kong-based, Nasdaq-listed crypto infrastructure company Nano Labs unveiled a $500 million convertible note offering, with the intention of using its proceeds to acquire BNB as a strategic treasury reserve.

Just last week, Nano Labs revealed it had purchased 74,315 BNB for a total of $50 million. The company intends to buy up to $1 billion worth of BNB, owning a substantial portion of the asset’s circulating supply.