Key Takeaways
- Bitget announced a $5 billion BGB token burn, removing 800 million tokens from circulation.
- BGB has increased 100% in the past week, supported by a growing user base and increased transaction volume.
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Bitget, one of the fastest growing crypto exchanges, today announced a $5 billion burn of its native token, Bitget Token (BGB).
The proposal discussed in Bitget's new white paper describes the burning of 800 million BGB tokens, representing 40% of its total supply.
At press time, the value of tokens burned has risen to more than $6.4 billion, highlighting the growing demand for BGB.
The token burn, which has significantly reduced the circulating supply to 1.2 billion, is part of Bitget's broader plan to implement a deflationary model and increase the utility of the token.
Starting in 2025, the crypto exchange will implement a seasonal burn, using 20% of profits from exchange and wallet operations to buy back and destroy additional tokens.
BGB is up over 100% in the past week and over 400% in the past month, with the token trading at $8.10 at press time.
The token saw over $600 million in trading volume in the last 24 hours. Bitget's daily trading volume exceeded $30 billion, with its user base expanding to 45 million.
“Our decision to burn $5 billion worth of BGB aligns with our plans to make it a powerful medium of transaction value,” said Gracy Chen, CEO of Bitget.
The exchange recently merged BGB with Bitget Wallet Token (BWB), combining the centralized and decentralized ecosystems under one token.
BGB, with a market capitalization of $11.6 billion, provides holders with discounts on trading fees, access to special events, and participation in Bitget's Launchpool for token farming.
Bitget maintains a $600 million Defense Fund and publishes Proof-of-Retention reports as part of its transparency initiatives.
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