There are many of us who do not know what is burning coins or tokens, so I will highlight the details for them today.
Coin or token burning is the removal or burning of a coin from its total supply. We can call coin burning the amount of coins that will be removed from the total supply of a coin.The main purpose of burning all coins is to reduce the amount of coins.
Suppose you burn ltc coins, now suppose LTC has a total supply of 100000000, now if you want to burn 20% coins of this project, they can burn coins slowly.
Coin burn results:
The result of burning coins is that they will reduce the amount of coins from the supply. As a result, the supply of that coin will decrease and the price of the coin will increase. We all know that 50% of the bnb coins were burned. And as a result, the price of bnb coins is much higher now.
Of course, burning coins can increase the price of these coins, because the circulation supply has decreased. Apart from that, the staking system is activated. Binance often does a staking system for BNB coins, so the price of BNB coins can increase without having to wait for a typical bull run. I think Binance uses a lot of methods in pumping up the price of the coin.
Burning doesnt really always mean that the price would be rising up on a particular coins/tokens that does have burning event because it would always matter on the demand
itself because the lesser the supply the higher the demand then of course it would really be having that higher price.
Speaking with BnB then this doesnt only talks about burning mechanism but rather basing off majorly on real use case plus having that momentum
when it comes to those applications that had been made plus having that burned events then the demand is still increasing
then theres no doubt about those numbers.