Bitget’s native token continues to dominate the trends with notable growth and price movements amid broader market indecision.
BGB rose more than 20% on Friday, extending its recent gains that have sent it up more than 110% within the past seven days.
Meanwhile, today’s uptrend came as the cryptocurrency exchange announced a strategic token burn initiative.
Trading firm reveals plan to burn 800 million BGB tokens to boost altcoin’s tokenomics.
Announcement Indicated:
To strengthen the BGB ecosystem, Bitgate will burn 800 million tokens held by the core team, which is 40% of the total supply. This burn will soon be completed, with on-chain records made publicly available.
BGB’s new white paper boosts optimism
Token burn model comes as Bitgate introduces an updated version BGB white paperWhich has attracted the attention of the crypto community.
On December 27, the Bitgate team released a new version of the BGB white paper, announcing the introduction of buyback and burn mechanisms. In the first burn, they will destroy 800 million BGB held by the core team at once, which is 40% of the total supply.
Meanwhile, the initial burn will destroy 800 million coins, worth about $6.8 billion at the current price.
This will reduce the total supply of BGB by approximately 40%.
Additionally, Bitgate will initiate regular BGB burns at the beginning of each quarter, cutting the asset supply.
The exchange will allocate 20% of the revenue received from its 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 the Bitget wallet.
Amid the bullish developments, attention has turned to the price trajectory of the native coin.
Altcoins have recently been on a bullish wave and have touched all-time highs despite the broader market decline.
Enthusiasts are expecting surprise profits from BGB in the coming sessions.
The announced token burn will result in significant dilution – a perfect recipe for demand and solid price movements.
The token burn initiative permanently reduces the circulating supply of tokens by sending tokens to dead addresses.
bgb value approach
While the cryptocurrency attempted a revival as Bitcoin warned at the $95K mark, Bitget’s token topped the charts with a strong uptrend.
The native token trades at $8.34 after slipping from its ATH of $8.50.
Meanwhile, it remains up 21% on its daily chart.
The announcement of the token burn boosted BGB’s bullish performance today.
Meanwhile, declining daily trading volume (-40%) reflects bullish exhaustion after recent gains.
Thus, BGB may drop below current price levels before further trends.
Nonetheless, various bullish signals have kept the alt afloat over the past sessions.
Bitget continues to strengthen its position as a leading exchange, with a daily trading volume of $10 billion and more than 45 million users.
Additionally, the trading platform confirmed plans to merge BGB with Bitgate Wallet Token (BWB) to enhance the ecosystem.
,@bitgetglobal has announced the merger of Bitget Wallet Token (BWB) and Bitget Token (BGB).
bitget.com/support/article…
With its current momentum, BGB is set to reach $10 before the end of 2024.
Post Bitgate boosts BGB price rally with 40% token burn plan first appeared on Invez
