Bitget crypto exchange, has unveiled plans to burn 800 million BGB tokens, equivalent to 40% of its total supply. Valued at approximately $6.8 billion, this significant move is part of Bitget’s broader strategy to enhance the utility and scarcity of its native token.
Additionally, the exchange announced a quarterly burn program. It will utilize 20% of its profits to buy back and burn BGB tokens, starting in 2025.
Major Token Burn to Enhance Bitget Toekn Value
The first burn of 800 million BGB tokens will help decrease the token’s supply by a huge margin, and with scarcity comes value.
This burn represents 40% of the token’s total supply. This is a strong message from Bitget on the token’s appreciation in the long run.
These burned tokens will be irreversibly be out from the marketplace, which will improve the general economic environment of BGB.
In a statement, Bitget explained that this move is to enhance the value of token holders. At the same time, it is to foster trust in the ecosystem of the exchange.
Thus, following the strategies used by other exchanges such as Binance, Bitget is eager to strengthen its presence in the crypto market.
That has already generated interest from investors. Furthermore, it has led to the rise of BGB by 15.36% in the last 24 hours.
BGB Expansion into Off-Chain Payments and Unified Token Utility
Bitget is planning to implement quarterly BGB burns, with 20% of the trading fees earned across the Bitget ecosystem.
These will be used to buy back BGB tokens. The purchased tokens will be locked up permanently to enhance the limited supply.
To ensure that all the congruence was being well monitored, the exchange promised to provide a detailed report after each of the quarterly burns.
In addition, Bitget revealed that BWB, the token of Bitget Wallet, will integrate with BGB, the token of Bitget’s centralized exchange.
The exchange rate for this merger has been is pegged at 11.68 BWB to one BGB. This move would rationalize its token economy.
BGB and Multi-Chain Gas Fees as well as Ecosystem Development
It also announced that BGB would be integrated into the GetGas feature which allows users to pay gas fees using one token across multiple chains on Bitget.
This feature will go live in January 2025 and is will facilitate interoperability between blockchains and enhance the use of BGB.
Therefore, BGB will become an important player within the framework of Bitget’s Web3 ecosystem.
New use cases of the token could include its adoption in decentralized finance (DeFi) applications and other applications built on blockchain.
These developments have therefore made BGB a very useful commodity that is able to transfer seamlessly among the centralized and the decentralized systems.
As reflected in its roadmap, Bitget is not just planning to position its ecosystem within the scope of Web3, but also to provide one-stop consumption services in real life.
This is in line with the exchange’s bullish plan of becoming a one-stop-shop for all crypto and blockchain services.
Bitget Token Prices and Market Performance
After the burn announcement, BGB’s price jumped by 15.36% to trade at $8.22 with a market capitalization of $11.5 billion.
The tokens 24-hour trading volume returned to $1.42 billion. This shows an increase in trade and activity by investors. The steady price trend can only be an outcome of a confident market that has faith in BGB’s future.
The technical analysis looks positive with a support at $8.00 and a resistance at $8.50. A daily close above the $6.40 to $6.45 resistance level could send BGB past $9.00 in the short term.
A quarterly burn program will send the token higher in the long term. With BGB gaining popularity, traders are paying close attention to these developments.
The future utility upgrades and burn frequencies are particularly in focus. As the scarcity of BGB rises and the utilization of the mineral broadens, BGB will likely see growth in the coming days.
