Bitget implements a quarterly burn and reduces BGB token supply by 800M, indicating dedication to the ecosystem’s development and the token’s growth.
The Bitget cryptocurrency exchange, a top-tier exchange in terms of daily average traded volume and globally registered users, has recently announced the first burn of its native token, BGB.
As per the announcement, Bitget has effectively reduced the supply of BGB tokens by 40% to 1.2 billion as of today. The 800 million token burn, estimated to be worth approximately $5 billion based on the current market value of BGB, will substantially boost the remaining tokens in the circulating supply.
Bitget intends to repurchase and burn 20% of its quarterly profits from operations to further fortify the BGB token during the anticipated parabolic altseason rally in 2025. Consequently, the cryptocurrency exchange will provide BGB token holders with a sense of empowerment through calculated revenue sharing in a manner that is comparable to Binance Holdings and its BNB quarterly burns.
Nineteen percent of the core team and 21 percent of the circulating supply and additional core team reserves were used to obtain the 800 million BGB tokens that were burned today.
“This initial burn, with a substantial contribution from the core team’s holdings, is an example of our belief in attaining success with the interests of our community. With the reduction in supply, BGB signifies the foundation of a stronger and more resilient ecosystem that benefits all stakeholders,” Gracy Chen, CEO at Bitget, noted.
The initiative aims to facilitate the widespread adoption of BGB tokens within the Web3 ecosystem. Additionally, the Bitget team plans to integrate the BGB token with Bitget Pay and Bitget Card and to eventually collaborate with additional PayFi companies to increase the overall utility of the token.
The market impact of Bitget’s BGB token burn
A few days following the cryptocurrency exchange’s announcement of the completion of a merger between Bitget Wallet Token (BWB) and BGB to improve user experience, the initial BGB token burn occurred. Consequently, the BGB token is anticipated to experience exponential growth as the sole native financial tool in the Bitget ecosystem.
The BGB token is well-positioned for increased mainstream adoption, as the Bitget exchange boasts over 45 million global users, and the Bitget wallet has over 60 million customers. Furthermore, BGB holders are entitled to token rewards from new project launches and trading fee discounts.
In the recent past, the mid-cap altcoin has been a top-performing altcoin, with a 24-hour trading volume of approximately $9.4 million and a fully diluted valuation of roughly $12.7 billion. During the mid-New York trading session on Monday, the price of BGB increased by over 300 percent in the past four weeks, and it is currently trading at approximately $6.38.
