how are you all I hope everyone is very well, today I will talk about what is Coin Burning? Why is burning? And how burning affects the price of coins, So let's begin, Some of the reasons behind the huge pump/hype in the coin, one of the reasons is Burning News, It is often observed that various coins come in Burning News and after that a huge pump of coins is seen. First of all, what is Burning? Deliberately wasting coins, so a specific Unknown Address Coin is sent and later that coin is never recovered. Let's know the reasons behind pumping coins as a result of burning,

Image collect Pixabay

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First of all, when creating a coin, a certain amount of coins is kept as MAX Supply, for example, 21M Coins are created, more than 1 more coin cannot enter the market, then coins gradually come to the market, for example, there are 50% coins in the market, if 10% of the coins are If it is destroyed or burned, the coins will decrease, and 40% will remain with the founder, which means that in the future, only 40% of the coins will come to the market, so the sell pressure on the coins will decrease, the demand for the coins in the market will decrease, if it is burned constantly, then the coins will be hyped. comes, the demand increases, and gradually the price of the coin starts to rise,
The main 2 coins that are constantly burning are Binance Coin (BNB) and (XRP), BNB always burn coins based on its Gas Fee, regular trading volume, token price and produced blocks, and then we can see the BNB price day by day. What is the effect on this?

Image collect Pixabay

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On the other hand, they are constantly burning coins based on XRP transactions, but why doesn't Hype come to XRP? There are some reasons for that
XRP has one case, no new usecases, no new updates coming, etc.

I hope you all understand, I am ending today here, everyone stay well, stay healthy, Allah-Hafez