Bitget burns 800M tokens reducing supply by 40%

Bitget, a cryptocurrency exchange, has burned 800 million of its native tokens, BGB (CRYPTO:BGB), marking a reduction of 40% in its total supply.

This move aims to bolster the token's long-term value and align with the platform's goal of creating a sustainable token economy.

The burn, announced on December 30, decreased the total supply from 2 billion to 1.2 billion tokens, effectively removing $5 billion worth of BGB from circulation.

"The completion of Bitget’s first-ever BGB burn, destroying 800 million tokens—40% of the total supply—stands as a defining moment in our journey to build a sustainable and impactful token economy for BGB," stated Bitget CEO Gracy Chen.

Token burns permanently remove cryptocurrencies by sending them to unspendable addresses, a common strategy used to control supply and potentially increase token value over time.

Following this action, BGB's price has risen significantly, trading at $5.75 as of press time—a 260% increase in December.

Looking ahead, Bitget plans to initiate a quarterly burn mechanism in 2025.

The exchange will allocate 20% of its quarterly profits from operations to repurchase and burn BGB tokens.

These repurchased tokens will be permanently removed by transferring them to designated burn addresses.

In addition, Bitget announced its intention to merge its two tokens, Bitget Token (BGB) and Bitget Wallet Token (CRYPTO:BWB), which propelled BGB to an all-time high of $8.49 earlier in the week.

With a market capitalisation of $8.56 billion, BGB is now ranked as the 25th largest cryptocurrency, according to TradingView.

The token’s price has demonstrated robust performance, climbing from $1.6 on December 1 to current levels.

At the time of reporting, the Bitget Token (BGB) price was $5.65.