Bitget Reduces BGB Token Supply by 40% with 800M Burn
Bitget cryptocurrency exchange, recognized for its large user base and daily trading volume, has announced the first burn of its native token, BGB.
Bitget has reduced the supply of BGB tokens by 40 percent to 1.2 billion through an 800 million token burn, valued at approximately $5 billion based on current market prices. This action aims to enhance the value of the remaining tokens in circulation.
To further strengthen the BGB token in anticipation of a potential altseason rally in 2025, Bitget plans to allocate 20 percent of its quarterly profits to repurchase and burn BGB tokens. This strategy mirrors Binance Holdings' approach with its BNB quarterly burns.
The burned tokens were sourced from 19 percent of the core team and 21 percent from circulating supply and additional reserves.
“This initial burn, with a substantial contribution from the core team’s holdings, demonstrates our commitment to community interests. The reduction in supply positions BGB as a stronger asset that benefits all stakeholders,” stated Gracy Chen, CEO of Bitget.
This initiative aims to promote the mainstream adoption of BGB tokens within the Web3 ecosystem. Bitget plans to integrate the BGB token with Bitget Pay, Bitget Card, and collaborate with more PayFi companies to increase the token's utility.
Market Impact of the BGB Token Burn by Bitget
The BGB token burn follows the merger between Bitget Wallet Token (BWB) and BGB, enhancing user experience. As the sole native financial tool in the Bitget ecosystem, BGB is expected to see significant growth.
With over 45 million global users on the Bitget exchange and more than 60 million customers using Bitget Wallet, BGB is positioned for increased adoption. Additionally, BGB holders receive trading fee discounts and access to rewards from new project launches.
The mid-cap altcoin has a fully diluted valuation of about $12.7 billion and a 24-hour trading volume of approximately $9.4 million. Recently, BGB has outperformed other altcoins, increasing over 300 percent in the past four weeks to around $6.38 during mid-New York trading.