Cryptocurrency exchange Bitget torches 220 million BGB, representing a value of 1.09 billion USD, while sealing additional investment prospects.
In a significant development for the cryptocurrency market, the Morph network has seen a surge in its BGB token's price, trading volume, and network activity. This transformation is largely attributed to the token burn mechanism and the increasing role of BGB as the native network token.
The Morph Foundation, now in control of the treasury, has initiated a token burn of 220 million BGB tokens, worth approximately $1.09 billion. This move has led to a reduction in the total supply of BGB's governance token, with burned tokens representing nearly 19% of the circulating supply.
Every transaction on Morph now requires BGB, and holders can participate in governance votes, making long-term governance more important as every holder is now directly involved in shaping the future of the Morph ecosystem.
The BGB token burn is closely tied to Morph's usage, and if the network successfully increases its usage, demand for BGB could grow while the supply continues to decrease. This dynamic could potentially drive up the price of BGB, as observed by its 14% surge in 24 hours, reaching $5.28.
The trading volume of BGB also skyrocketed by 307%, reaching nearly $290 million. This high trading volume often indicates conviction rather than mere speculation, suggesting that investors are already valuing BGB differently.
BGB has been positioned as the gas and governance token in the Morph network. Other cryptocurrencies, such as Binance Coin and Ethereum, also employ token burn mechanisms to support scarcity and strengthen tokens' value through real activity.
It is noteworthy that the nonprofit organisation now managing the treasury of BGB and has committed to directly linking future token burnings to network activity is not explicitly named in the provided search results.
As the Morph network continues to evolve, the role of BGB as a central component of its ecosystem becomes increasingly apparent. This development underscores the potential for BGB to become a significant player in the cryptocurrency market.
