Supply

Bitget will burn BGB worth over 5 billion USD, accounting for 40% of the total supply

ChainCatcher news, the Bitget team has released a new version of the BGB white paper, announcing the introduction of a buyback and burn mechanism. In the first burn, 800 million BGB held by the core team will be destroyed in one go, accounting for 40% of the total supply. Based on the current price of BGB, the value of the destroyed portion exceeds 5 billion USD. After the burn, the total supply of BGB will be reduced to 1.2 billion, with 100% full circulation.At the same time, BGB will initiate quarterly buyback and burn starting in 2025. Bitget will use 20% of the quarterly profits from the exchange and wallet business to buy back and burn BGB. The profits will come from trading fees on Bitget exchange’s spot, contract, and leveraged trading, as well as fees from Swap, contract, and NFT transactions on Bitget Wallet.The white paper also introduces BGB's future rights plan, which will focus on three parts: on-chain application scenarios, PayFi payment scenarios, and in-platform rights scenarios, allowing BGB to become a mainstream asset deeply integrated into popular public chains and leading DeFi ecosystems.Bitget CEO Gracy Chen stated: "The Bitget team has chosen to proactively destroy over 5 billion USD of platform tokens, fully demonstrating our firm commitment to long-termism. Over the past decade, CEX has played a crucial role in the development of the crypto industry. As more applications and activities gradually migrate on-chain, Bitget will build an integrated ecosystem centered around BGB, continuing to drive innovation and development in the industry."

Glassnode: Bitcoin wealth redistribution, long-term holders taking profits, new investors absorbing supply

ChainCatcher message: According to a recent report from Glassnode, the ongoing bull market for Bitcoin marks a significant shift of wealth from long-term holders to new investors, and the redistribution of wealth is a sign of the maturity of the Bitcoin market. Long-term holders have been realizing record profits, peaking at $2.1 billion per day, while new investors have sufficient demand to absorb this supply.According to the report, this trend indicates that the depth and diversity of the Bitcoin ecosystem are continuously expanding, thanks to increased institutional participation and heightened retail interest.In 2024, long-term Bitcoin holders (especially those holding for 6 to 12 months) have become the main contributors to selling pressure. These tokens were primarily acquired earlier this year, accounting for 38.5% of the profits realized since November, totaling $27.3 billion.Meanwhile, Bitcoin held for over three years is relatively stagnant, indicating that higher price levels may be needed to stimulate its sale.The report notes that this is a natural cycle in the Bitcoin market. As prices rise, long-term holders distribute their wealth, allowing new investors to absorb the supply.Despite significant profit-taking by long-term holders, new investors have shown resilience, providing the liquidity needed to maintain Bitcoin's upward momentum. Metrics related to short-term holders (STH) highlight their ability to withstand market adjustments without triggering a chain sell-off.Additionally, compared to previous bull markets, the volatility of the current Bitcoin cycle has also decreased. The maximum drop in August was 32%, significantly lower than the adjustment levels of previous cycles. Analysts attribute this stability to increased institutional participation, while the launch of spot Bitcoin ETFs and the widespread acceptance of digital assets have driven this trend. Besides the buying pressure from new retail investors, this institutional demand has also greatly supported the market, ensuring liquidity during sell-offs and supporting price resilience.
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