In this article, you will learn about burning BNB tokens and destruction of Ethereum and SHIB, as well as the reasons for burning them.
Burning BNB
More recently, the mechanism of the combustion itself has been changed – BNB Auto-Burn, it allows you to immediately replace the quarterly BNB burns. The goal is to make the exchange more transparent. In addition, the volume of coins burned no longer depends on the sales / trading volume on the Binance exchange.
Binance has promised its community remove 50% BNB from circulation, which equates to approximately $ 100 million BNB. Binance is actively taking steps to reassure its community of its $ BNB value. Changpeng Zhao (Czech Republic), Chief Executive Officer (CEO) of Binance, acknowledges the “slow pace” of incineration and introduced the accelerated incineration program at the 14th $ BNB incineration. All this will positively affect the price of the coin in the future.
Over the past day, 25.6 million SHIB were burned
According to the latest data, almost 26 million SHIB were burned per day, and over the past few days, twice as many were destroyed.
According to etherscan, there were 9 largest transactions destroyed 25,612,598 SHIB tokens, they were transferred to a zero wallet, from which these coins can neither be withdrawn nor spent; therefore they are permanently withdrawn from circulation.
The funds were “burned” in pieces in the amount of 10,716,185; 4 312 431; 2,400,000 SHIB
So far has been burned a total of 410 300 613 625 600 Shiba Inu tokens, which is just over 41% of the total amount of circulation. The total volume is a staggering SHIB quadrillion.
Also etherscan also shows that a total of 58.9 million SHIB has been sent to the zero wallet over the past few days.
Shiba Inu recently announced a new strategy for burning SHIB, LEASH and BONE tokens. The team partnered with NowPayments.io to burn tokens on every transaction.
So far, the chosen strategy has not brought the expected effect and the price of the token is still dependent on the statements of famous people in the crypto industry, and is also regulated by the whales that hold most of the Shiba Inu offer.
Ethereum blockchain burns $ 23,000 per minute on average
According to Ultrasound Money, the Ethereum network tracker, 152 days after the implementation of the EIP-1559 proposal, which provided the Ethereum blockchain with deflationary functions and the ability to burn gas fees, the network now burns an average of 6, 18 ETH per minute, which at today’s price $ 3,349 per ETH is $ 23,484 per minute.
At the moment, the Ethereum blockchain burned a total of 1 362,500 ETH, which is approximately $ 5.18 billion.
The Ethereum network is moving from a Proof-of-Work (PoW) consensus mechanism to a Proof-of-Stake (POS) mechanism, and to this end, the network is undergoing a series of hard fork updates.
A hard fork occurs when major changes are made to the blockchain network protocol that lead to a discrepancy between the old protocol and the newer version.
Overall, the London hard fork is a vital upgrade for the Ethereum network in its quest to move from proof of work (PoW) network consensus to proof of stake (PoS) network consensus, which aims to save the network from near paralysis and reduce the amount of energy required to performing transactions on the network, as POS is known to consume much less power than PoW.
SHIB, BNB, ETH: Correlation of Price and Destruction of Coins
The deflationary mechanism attracts investors, but you need to be careful: this can create the illusion that the token will rise in price by 100% in the future. Nevertheless, this does not always produce the desired effect, as in the case of SHIB or Ethereum, which, although they experienced some rise after the update, are now crumbling along with the rest of the market.
In the end, the decisive role is not played by the number of coins or even the absence of inflation, but whether the coin will be used in 5, 10 or 15 years.
#Burning #BNB #SHIB #Ethereum
