The burning amount of BNB reached a new high in the third quarter, and the expansion of Binance ecosystem boosted the value growth of BNB
On October 17, Binance announced the 13th BNB burn, with a total of 2,253,021 BNB burned, plus 867 "BNB Anti-Black Hole ProjectThe total number of BNBs used in "BNB" destroyed is 2,253,888, which means that BNB with a total value of about 68 million U.S. dollars will be permanently withdrawn from the circulation market. Compared with the destruction in the previous quarter, the total amount destroyed this time hit a record high again.
The number of burns shows the profit of Binance in Q3 of 2020. According to the reverse calculation of the BNB white paper mechanism, Binance’s profit in Q3 of 2020 is about 340 million US dollars, and the profit in the first three quarters exceeds 900 million US dollars. The reduction in the total circulation of BNB may push up the market price.
In the long run, it is far more than deflation that plays a decisive role in the value of BNB.
In CZ's review of Binance's last quarter, he focused on DeFi and Binance Smart Chain (BSC), and at the same time supplemented the progress of various aspects of Binance's ecology.
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Binance Smart Chain (BSC) mainnet launched
Starting in July, the DeFi boom emerged, and many new ways of playing such as AMM and liquidity mining appeared. At the same time, UniSwap, SushiSwap, etc. were in the limelight. Less bonus.
But more importantly for Binance and BNB is the emergence of Binance Smart Chain (BSC).
At the beginning of September, the BSC mainnet was launched, featuring compatibility, open source, high performance, and benchmarking against Ethereum, aiming to undertake the traffic overflowing from Ethereum congestion. In the future, BNB will be the fundraising fuel on the BSC chain, and its future value is self-evident.
According to data from BscScan on October 16, the number of accounts on Binance Smart Chain has reached 211,000. At the end of September, the number was 35,000. In about half a month, the number of Binance Smart Chain users will increase by more than 6 times, and this growth rate is 7.5 times that of Ethereum.
In addition to the rapid growth in the number of users, from the perspective of the number of transactions and handling fees, there were more than 400,000 trading orders on BSC on September 14, and the average value of each transaction fee was less than US$0.2. On the same day, the number of transaction orders on Ethereum was 1.08 million, and each transaction fee was about 1.4 US dollars. The transaction volume of BSC, which was only 14 days old at that time, accounted for 40% of the 6-year-old Ethereum network, but the transaction fee was only 13% of that of Ethereum.
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BSC ecological 100 million US dollars to support the acceleration plan launched
If BSC is a public chain with a good foundation, then the support of Binance has made the BSC ecology flourish rapidly.
In September, Binance officially announced a $100 million support acceleration plan for the BSC ecosystem to create synergy between CeFi and DeFi.
andPancakeswap、Burgerswap、BakeryswapandFortubeThese 4 projects provide a total of USD 10 million in liquidity support; at the same time, the first batch of USD 350,000 supported seed funding support projects are announced:AnySwap、Arkane Network、BakerySwap、Bitquery、PancakeSwapand Proxima.
These projects need to pledge BNB during BSC mining, and some project tokens have been listed on Binance, and even BNB trading pairs have been opened. Binance’s support has finally been empowered on BNB.
In addition to investing in real money, in terms of technology, Binance launched the Canal Project to connect all public chains and Binance Smart Chain. The Binance Smart Chain community even upgraded it and launched the "Panama Project" that can link all public chains without a Binance account.
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Ecological expansion and development boost BNB value growth
Back to the Binance main station business itself, the results in the past quarter were equally impressive.
Binance’s ecological landscape is gradually expanding. In addition to the innovative products that brought BNB a period of growth in the past few days (LaunchPool) and Binance Earning Coin Zone, other businesses are also growing rapidly.
For example, Binance Futures ushered in its first birthday in September, and has now firmly ranked first in the contract market. As the first centralized mining pool to launch AMM, Binance Mining Pool currently ranks sixth.
Another sector with rapid growth is the Binance USD stablecoin BUSD, which has been launched for just over a year. Its current market value has exceeded 800 million US dollars, ranking fourth among stablecoins and top 30 among all encrypted assets.
Binance's ecological map has covered upstream and downstream links such as spot transactions, derivatives, wealth management products, mining pools, public chains, wallets, and information websites. It runs through CeFi and DeFi, continues to evolve and develop rapidly, and is firmly at the top of the industry Location.
In general, BNB, as the only value token of the Binance ecosystem, benefits from the growth dividend brought about by the development of the ecosystem. At the same time, the emergence of Binance Smart Chain has boosted BNB's entry into the wider DeFi ecosystem, capturing value across CeFi and DeFi.
