Token burn and merger fuel Bitget token's 320% rise over the past two months
Quick Take Two developments in late December appear to have been pivotal to BGB’s recent trajectory. The following is an excerpt from The Block’s Data and Insights newsletter.
The Bitget token ( BGB ), the official token of the Bitget centralized exchange (CEX), has been one of the best-performing tokens in the market over the past several weeks. Currently trading at around $6.80, the token boasts a fully diluted valuation (FDV) of approximately ~$8 billion.
The price of BGB is up over 320% since Dec. 1, 2024, far outpacing other exchange tokens such as BNB, LEO and CRO, which have remained relatively stagnant over the same period. This performance is notable even against major assets like Bitcoin, which have seen comparatively flat price action during this time.
Two major developments in late December appear to have been pivotal to BGB's recent trajectory:
- On Dec. 26, Bitget announced the merger of its Bitget Wallet Token (BWB) with the primary BGB token, consolidating its token ecosystem and streamlining utility.
- The following day, it was announced that Bitget would burn 40% of the total BGB token supply, roughly 800 million BGB, while allocating 20% of exchange and wallet profits for quarterly token burns.
Interestingly, following these announcements, BGB fell from a peak of $8.39 on Dec. 27 to a low of $5.79 on Dec. 31, representing a 30% correction in just four days following the latest burn announcement. Since then, BGB has gradually recovered to its current price of $6.90, representing an 8% gain year-to-date.
This is an excerpt from The Block's Data & Insights newsletter . Dig into the numbers making up the industry's most thought-provoking trends.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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