Crypto exchange Bitget has revealed plans to burn 800 million BGB tokens, equivalent to 40% of the total supply. Valued at approximately $6.8 billion, this landmark move is part of Bitget’s broader strategy to increase the utility and scarcity of its native token.
In addition, the stock exchange announced a three-month burning program. They will use 20% of their profits to buy back and burn BGB tokens, starting in 2025.
A large token burn to increase the value of Bitget Tokens
The first burn of 800 million BGB tokens will help reduce the token supply by a large margin, and with scarcity comes value.
This burn represents 40% of the total token supply. This is a strong message from Bitget about long-term token appreciation.
These burned tokens will irretrievably disappear from the market, which will improve the general economic environment of BGB.
In a statement, Bitget explained that the move aims to increase the value of token holders. At the same time, it is fostering trust in the exchange ecosystem.
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Therefore, following the strategies used by other exchanges such as Binance, Bitget wants to strengthen its presence in the crypto market.
This has already aroused the interest of investors. Furthermore, this has led BGB to rise by 15.36% in the last 24 hours.
Extension of BGB to off-chain payments and Unified Token Utility
Bitget plans to implement quarterly BGB burns, with 20% of trading fees earned in the Bitget ecosystem.
They will be used to redeem BGB tokens. Purchased tokens will be permanently locked to increase the limited supply.
To ensure that all matches are well tracked, the exchange has promised to provide a detailed report after each quarterly burn.
In addition, Bitget revealed that BWB, the Bitget wallet token, will integrate with BGB, Bitget’s centralized exchange token.
The exchange rate for this merger is fixed at 11.68 BWB for one BGB. The move would streamline its token economy.
BGB and multi-chain gas charges as well as ecosystem development
He also announced that BGB will be integrated into the GetGas feature that allows users to pay gas fees using a single token across multiple chains on Bitget.
This feature will become active in January 2025 and is designed to facilitate interoperability between blockchains and improve the use of BGB.
Therefore, BGB will become an important player within Bitget’s Web3 ecosystem.
New use cases for the token could include its adoption in decentralized finance (DeFi) applications and other applications built on the blockchain.
These developments have therefore made BGB a highly useful commodity that can be seamlessly transferred between centralized and decentralized systems.
As reflected in its roadmap, Bitget not only plans to position its ecosystem within the scope of Web3, but also provide real-life one-stop consumption services.
This is in line with the exchange’s optimistic plan to become a one-stop shop for all crypto and blockchain services.
Bitget Token Prices and Market Performance
After the incineration announcement, the price of BGB jumped 15.36% to $8.22 with a market capitalization of $11.5 billion.
The token’s 24-hour trading volume returned to $1.42 billion. This shows an increase in trade and investor activity. A stable price trend can only be the result of a confident market that believes in the future of BGB.
Technical analysis looks positive with support at $8.00 and resistance at $8.50. A daily close above the $6.40-$6.45 resistance level could send BGB above $9.00 in the short term.
The quarterly burn program will increase the token in the long run. As BGB grows in popularity, retailers are watching this development closely.
Future utility upgrades and recording frequencies are a particular focus. As the shortage of BGB increases and the use of the mineral expands, BGB is likely to rise in the coming days.
