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Bitget Token (BGB), the native token of prominent crypto exchange Bitget, has performed exceptionally well over the past month courtesy of some positive announcements, including major token burns and new partnerships.
According to data from CoinMarketCap, BGB has gained more than 376% over the past month, registering a new all-time high of $8.49 on December 27.
The token is up by a staggering 1,233% over the past year and 84% over the past week.
However, BGB has undergone a mild correction over the past day, dipping by around 7% to trade at $7.66. The token’s market cap currently stands at $10.71 billion, making it the 18th largest cryptocurrency by market cap.
The token is also the second largest centralized exchange (CEX) token by market capitalization, only trailing behind Binance’s BNB. BGB has a total and maximum supply of 2 billion, with a circulating supply of 1.4 billion.
Why has the BGB crypto token performed so well? Token burns and an association with Telegram are both part of the cause.
Key Takeaways
- Bitget Token (BGB) surged over 376% in a month, reaching an all-time high of $8.49 before correcting slightly.
- The surge comes amid a wave of positive announcements, including plans to burn 800 million BGB tokens, reducing supply by 40%.
- Bitget Exchange has also merged BGB and Bitget Wallet Token (BWB) into a single utility token.
- Bitget continues to expand its futures trading platform with indices like the GMCI Meme index and GMCI 30 index.
Bitget Announced $5 Billion Token Burn
The recent surge in Bitget’s native token comes amid an influx of positive news over the past few days. On December 27, the exchange announced a plan to burn 800 million BGB, valued at over $5 billion.
According to Bitget’s official announcement, the exchange aims to improve BGB’s utility — and a deflationary token model is going to help.
The burn will reduce the total token supply by 40%, leaving 1.2 billion in circulation.
Starting in 2025, Bitget will conduct quarterly burns funded by 20% of the platform’s profits, which includes revenues from spot, futures, and non-fungible token (NFT) transactions. All burn activities will be recorded on-chain to ensure transparency.
Gracy Chen, CEO at Bitget, said: “Our decision to burn $5 billion worth of BGB aligns with our plans of making it a powerful medium of transacting value.
“Our next phase will extend BGB’s utility on-chain, integrating it into more Dapps and bringing it to the masses, making BGB available to all, making PayFi a part of everyday life.”
We will firstly burn 800 million BGB (40% of total) which is worth more than $5 billion! Complete in the near future. Every quarter thereafter, 20% of exchange and wallet revenues are used to buy back BGB in the market and burn.
Cherish every BGB in your hand! Merry X’mas and… https://t.co/AjBMfXrb1F pic.twitter.com/aNSLnRqwb0
— Gracy Chen @Bitget (@GracyBitget) December 27, 2024
The token burn announcement came after Bitget merged BGB and Bitget Wallet Token (BWB), into a single utility token, BGB.
BWB was the native token of Bitget Wallet, the exchange’s associated Web3 wallet, which reportedly had 60 million users across various blockchain networks.
BGB already provides holders with perks such as fee discounts, VIP privileges, and access to token farming through Launchpool. Bitget also plans to expand BGB’s functionality within on-chain ecosystems, enabling staking, liquidity provision, and eligibility for airdrops.
The token will also power Bitget Wallet services, facilitating multi-chain gas fee payments, and will be integrated into payment systems for broader everyday use.
Bitget’s Major Bet on TON Network
It is worth noting that Bitget has also been increasingly invested in Telegram-associated The Open Network (TON) blockchain.
In November, Bitget Wallet and Foresight Ventures launched a $20 million funding program to support Telegram’s Mini App ecosystem and foster developer innovation.
At the time, Bitget said the initiative offers more than just financial support. Bitget Wallet will provide technical assistance via its OmniConnect developer kit and operational backing, including marketing, along with access to its Telegram wallet user base for community-building efforts.
The funding came after Bitget and Foresight Ventures’ $30 million investment in the TON blockchain in September.
Earlier this month, Bitget also launched the GMCI Meme index, which contains the leading memecoins by market capitalization, on its futures trading platform. The index includes 25 prominent meme coins, such as Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE).
Previously, Bitget added the GMCI 30 index to its futures market. This index offers a selection of the top 30 cryptocurrencies, weighted by their circulating market cap, and considers exchange and custodian support as well as sufficient liquidity.
The Bottom Line
BGB’s impressive growth follows a series of positive developments, including Bitget’s plan to burn 800 million BGB tokens, reducing the total supply by 40%, and the merger of BGB with Bitget Wallet Token (BWB) into a unified utility token.
Adding memecoins into an index and working closely with Telegram: BitGet is firing on all cylinders across crypto, which certainly goes a long way to explaining the extraordinary BGB price surge of recent months.
