Bitget’s native token continues to dominate trends with remarkable developments and price actions amid broad market indecisiveness.
BGB soared over 20% on Friday, extending its recent gains, which have left it up over 110% within the past seven days.
Meanwhile, today’s uptrend came as the cryptocurrency exchange announced a strategic token burn initiative.
The trading firm revealed plans to incinerate 800 million BGB tokens to enhance the altcoin’s tokenomics.
The announcement indicated:
To strengthen the BGB ecosystem, Bitget will burn 800 million tokens held by the core team, representing 40% of the total supply. This burn will be completed soon, with on-chain records made publicly available.
BGB’s new white paper magnifies optimism
The token burn model comes as Bitget introduces an updated version of BGB’s white paper, which has attracted the crypto community’s attention.
On December 27, the Bitget team released a new version of the BGB white paper, announcing the introduction of a buyback and burn mechanism. In the first burn, they will destroy 800 million BGB held by the core team at once, accounting for 40% of the total supply.
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Meanwhile, the initial burn will see 800 million coins destroyed, worth roughly $6.8 billion at the current price.
That will reduce BGB’s total supply by approximately 40%.
Moreover, Bitget will introduce routine BGB burns, trimming asset supply at the start of each quarter.
The exchange will allot 20% of its revenue from wallet and exchange operations to buy back and cremate BNB. According to the team:
These profits include transaction fees from spot, futures, and margin trading on the Bitget exchange, as well as income from swaps, futures, and NFT trading on Bitget Wallet.
Attention has switched to the native coin’s price trajectory amidst the bullish developments.
The altcoin has rode bullish waves lately, touching all-time highs even as the broad market bled.
Enthusiasts expect staggering gains from BGB in the coming sessions.
The announced token burns will introduce significant scarcity – a perfect recipe for demand and solid price movements.
Token burn initiatives permanently decrease the token’s circulating supply by sending the tokens to dead addresses.
BGB price outlook
While cryptocurrencies attempted revivals as Bitcoin wared at the $95K mark, Bitget’s token topped charts with robust uptrends.
The native token trades at $8.34 after sliding from ATHs of $8.50.
Meanwhile, it stays 21% up on its daily chart.
The token burn announcement drove BGB’s bullish performance today.
Chart by Coinmarketcap
Meanwhile, the dwindling daily trading volume (-40%) likely reflects bull exhaustion after recent gains.
Thus, BGB could slide from current price levels before further uptrends.
Nonetheless, various bullish cues have kept the alt afloat in the past sessions.
Bitget continues to cement its position as a leading exchange, with its daily trading volume at $10 billion and more than 45 million users.
Moreover, the trading platform confirmed plans to merge BGB with Bitget Wallet Token (BWB) to enhance the ecosystem.
.@bitgetglobal has announced the merger of Bitget Wallet Token (BWB) and Bitget Token (BGB).
bitget.com/support/articl…
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With its prevailing momentum, BGB appears poised to hit $10 before 2024 end.
The post Bitget fuels BGB price rally with 40% token burn plan appeared first on Invezz
