Burning and Building: How BNB’s Deflation Fuels Binance’s Rise

Generated by AI AgentCoin World
Saturday, Sep 13, 2025 8:46 am ET1min read
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Aime RobotAime Summary

- Binance Coin (BNB) hits $131B market cap, driven by Binance's growth and BSC's expanding utility.

- BSC surpasses Ethereum in DEX volume, boosting BNB demand through increased network activity.

- Binance's quarterly token burns reduce supply, creating deflationary pressure since 2017.

- BNB's role in fee discounts, staking, and governance fuels adoption as Binance expands globally.

- Analysts highlight BNB's 30% weekly surge, citing BSC adoption and strategic utility as long-term growth drivers.

Binance Coin (BNB), the native token of the Binance exchange, has recently achieved a significant milestone by reaching an all-time high market capitalization of $131 billion. The surge in BNB's value reflects the continued growth of Binance as a leading global cryptocurrency exchange and the expanding utility of

BNB
across the Binance ecosystem. As of early 2024, BNB has outperformed both exchange and blockchain-native tokens, posting a 50% increase since early March and more than 80% over the past 30 days .

One of the key factors driving BNB's growth is its role as the primary utility token within the Binance Smart Chain (BSC). According to recent data, the BSC has surpassed

Ethereum
in decentralized exchange (DEX) transaction volume, indicating strong adoption and usage of the BNB-powered chain . This rise in network activity has further solidified BNB's position in the market and increased demand for the token.

Binance's business model also plays a critical role in BNB's value appreciation. The exchange regularly allocates a portion of its quarterly profits to repurchase and burn BNB tokens. This deflationary mechanism has been a structural part of Binance’s strategy since the company's early years and has helped reduce the circulating supply of BNB over time. This approach aligns with broader market dynamics that favor tokens with predictable supply reductions and clear value accrual mechanisms.

In addition to its use in trading fee discounts and staking rewards, BNB continues to serve as a governance token within the Binance ecosystem. As Binance expands its product offerings and global reach, the demand for BNB is expected to rise further, especially as more users engage with the Binance Smart Chain and its decentralized applications (dApps).

Market analysts have highlighted BNB’s performance as one of the most notable trends in the cryptocurrency sector in 2024. The token's price has surged nearly 30% in a single week, driven by increased transaction volume and broader adoption of BSC-based projects. While volatility remains inherent to the crypto market, the long-term trajectory of BNB appears to be supported by its increasing utility and strategic use within the Binance ecosystem .