Huobi Exchange Burns Over $130 Million Worth of HT in Latest Huobi Token Burn
- Huobi burned 5.826 million HT tokens in May
- The exchange says the burned tokens were worth around $138.6 million at the time of the burn
- Huobi says it uses 20% of its contracts platform and Huobi Global revenue to buy and burn HT tokens
Huobi's May HT burn exceeded April's burn by 33%
The Huobi cryptocurrency exchange has released its Huobi Token update, detailing the HT token burn that took place in May.
In May, the exchange burned 5.826 million HT, which represents a 33% increase compared to the April HT burn. Huobi also noted that the number of HT holders grew by 23% in May compared to April.
Binance, whose BNB token is the largest crypto exchange token by market capitalization, does its BNB burns on a quarterly basis. Meanwhile, Huobi has been running a monthly HT burning schedule on a monthly basis since 2020.
Several cryptocurrency exchanges periodically burn their tokens in order to reduce their circulating supply. This is done to incentivize long-term holding – the holders’ share of the total token supply effectively increases as tokens are periodically removed from circulation.
At current prices, 5.826 million HT translates to about $57.8 million. However, the cryptocurrency market has been performing poorly as of late, so the value of the tokens was higher when they were burned – according to Huobi’s post, the value of the burned tokens was at around $138.6 million at the time of the burn.
Huobi says that it uses 20% of the revenues from its futures trading platform and Huobi Global platform to buy HT tokens and burn them.
Huobi Token currently has a market capitalization of $1.71 billion, and saw around $425 million in trading volume during the last 24 hours. The token’s price hit its all time high at around $40 on May 13, but its price has since corrected heavily, alongside the rest of the cryptocurrency market.
Huobi Global is one of the world’s largest cryptocurrency exchanges. In the last 24 hours, its spot markets handled almost $8.75 billion in trading volume.
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