ETH, BNB, SHIB, SOL, XRP- Coin Burning Explained (2025 Deep Dive)

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Welcome to CryptoDecodeing! In today’s video, we break down how the biggest cryptocurrencies — Ethereum (ETH), Binance Coin (BNB), Shiba Inu (SHIB), Solana (SOL), and XRP — burn tokens and why the burning mechanism is one of the strongest price drivers in crypto.  We explain: 🔥 How token burning works 🔥 Why projects destroy billions of dollars in coins 🔥 The real impact of burning on price and scarcity 🔥 Which coin has the strongest deflation model 🔥 2025 burn statistics and future predictions  If you want more deep crypto breakdowns, visit our website: 👉 www.cryptodecodeing.com  Don’t forget to LIKE, SHARE, COMMENT & SUBSCRIBE for daily crypto content!

Transcript

00:00Imagine if destroying money could actually make you richer.

00:03Sounds crazy, right?

00:05But in the world of crypto, it's a real economic weapon.

00:09Today, I'm breaking down how Ethereum, BNB, Shiba Inu, Solana, and XRP are literally burning billions of dollars

00:16and why this very mechanism might decide which coins explode next.

00:21Welcome back to Cryptodecaning.

00:23Let's decode the truth behind crypto burning.

00:25Before we dive in, give me a huge favor and hit that like button,

00:29share this video with a friend, drop a comment with your favorite burning coin,

00:33and subscribe to Cryptodecaning for more content just like this.

00:37And for our full, in-depth breakdowns and analysis, make sure you visit our website at Cryptodecaning.com.

00:44So, let's start with the basics.

00:47What is the crypto burning mechanism?

00:49Put simply, coin burning means permanently destroying tokens.

00:53They're gone forever, locked away in a wallet that no one can ever access.

00:57Think of it like a stock buyback, where a company buys its own shares to reduce the supply,

01:03but in crypto, it's often more powerful and transparent.

01:07The economics are simple.

01:09When the supply of something drops and the demand for it stays the same or increases,

01:13the price has to adjust upward.

01:15It's a fundamental law of supply and demand.

01:18So how do they actually do it?

01:20When a coin is burned, it's sent to a special address often called a black hole address.

01:24This address is unique because it has no private key.

01:28Without a private key, no one can ever access the funds inside it.

01:32No one can move them, and no one can cheat the system.

01:36The best part is that every single burn transaction is visible on the blockchain for anyone to see.

01:41It's totally transparent, permanent, and irreversible.

01:45But why do projects burn their tokens in the first place?

01:48It's not just for show.

01:50Burning is a tool for economic engineering.

01:52First, it reduces inflation by taking coins out of circulation.

01:57Second, it increases scarcity, making each remaining coin potentially more valuable.

02:02And third, it can help protect a network from spam attacks by adding a small cost to transactions.

02:08So, remember, burning isn't just hype.

02:11It's a calculated economic strategy.

02:13Now let's look at the major players.

02:15First up, Ethereum, the king of smart burning.

02:19Ever since the major upgrade known as EIP-1559, every single transaction on the Ethereum network

02:25burns some ETH, that gas fee you pay.

02:28A portion of it is destroyed forever.

02:30This is huge because during periods of high network activity, like an NFT mint or a big

02:36DeFi event, Ethereum can become net deflationary.

02:39That means more ETH is being burned than is being created through mining rewards.

02:43As we stand in 2025, over 4.5 million ETH has already vanished into thin air.

02:50That's worth more than 15 billion dollars, just gone.

02:53This transforms ETH from just a coin into a genuinely shrinking asset.

02:58Next, we have Binance Coin, or BNB, which I call the hybrid burn beast.

03:04BNB uses a powerful two-part system to reduce its supply.

03:07First, there's the auto burn, which happens every quarter and is calculated based on BNB's

03:13price and network activity.

03:15Then there's BEP-95, which is a real-time gas burn, similar to Ethereum's, where a portion

03:21of transaction fees is burned with every block.

03:24The ultimate goal here is ambitious, to cut the total supply of BNB from its original

03:29to 100 million all the way down to 100 million.

03:32So far, over 65 million BNB has been permanently eliminated.

03:36If you look at the total value burned over its history, it's well over 50 billion dollars.

03:43BNB is mathematically engineered to become rarer with each passing year.

03:47Then there's XRP.

03:48Its burn mechanism is a bit different.

03:51It's a continuous micro-burning process.

03:53Every single transaction on the XRP ledger burns a tiny, tiny amount of XRP.

03:59The primary purpose of this is to prevent network spam and protect the integrity of the ledger.

04:04It's a slow and steady burn, but it's unstoppable and permanent.

04:08This system ensures that the total supply of XRP becomes just a little bit more scarce

04:13every single day, with every transaction that occurs.

04:17Now for the one everyone talks about, Shiba Inu.

04:20SHIB started with a mind-boggling supply of 1 quadrillion tokens.

04:24That's a 1 followed by 15 zeros.

04:26It's a wild number.

04:27To combat this, the community and developers have been focused on burning.

04:32To date, over 410 trillion SHIB tokens have been burned.

04:37A huge part of this new strategy is Shibarium, their layer-to-solution, which now automates

04:42the burning process using a portion of its transaction fees.

04:46On top of that, community-led burn initiatives are constantly adding fuel to the fire.

04:51But here's the challenge.

04:53Even with these massive numbers, SHIB needs an incredible volume of burns to really move

04:57the price needle, simply because the starting supply was so astronomically high.

05:02Finally, we have Solana.

05:04SOL's approach is simple and efficient.

05:07Just like Ethereum and BNB, Solana burns a percentage of every transaction fee on its network.

05:13Transactions on Solana are famously fast and cheap, and the burn mechanism is just as seamless

05:19as it's automatic.

05:20It's not as dramatic as some other coins, but it's incredibly consistent.

05:24And in the world of tokenomics, consistency is everything.

05:28This steady reduction adds a deflationary pressure to the Sol token over the long term.

05:33So, after looking at all these, let's rank their real deflationary power.

05:38Here's the truth that the market often ignores.

05:41Ethereum and BNB clearly have the strongest and most effective burn systems.

05:45Why?

05:46Because their burns are directly tied to network activity and utility.

05:50The more people use the Ethereum network for DeFi, NFTs, and smart contracts, the more

05:56ETH gets burned.

05:58The more people trade on the Binance ecosystem and use the BNB chain, the more BNB gets burned.

06:03It's a perfect economic engine.

06:05More usage leads to more burning, and more burning leads to more scarcity.

06:09On the other hand, SHIB's burn numbers sound huge, but their impact is relatively tiny when

06:16you compare it to its massive total supply.

06:19It's like trying to empty an ocean with a bucket.

06:21It's progress, but it's slow.

06:24Solana and XRP have great, steady mechanisms, but their burn rates are designed to be slow

06:29and gradual rather than aggressively deflationary.

06:32So what's the final takeaway from all this?

06:34For a burn model to be truly successful and impact a coin's value long-term, it needs to

06:40have three key features.

06:42It must be consistent, it must be predictable, and most importantly, it must be linked to

06:47real utility on the network.

06:49Hype-driven, one-off burns don't build sustainable value.

06:53Ethereum and BNB lead the industry because they've built systems where the burn has a direct

06:58consequence of people actually using their platforms.

07:01They don't burn tokens just for the sake of burning.

07:03They burn because their networks are creating value.

07:07Burning isn't just a marketing gimmick, it's pure economics.

07:11And as we move forward in 2025, this race for deflation, the race to become the most scarce

07:16and valuable asset, is only just beginning.

07:19If you want to dive even deeper with detailed charts, analysis, and links to live crypto burn

07:25trackers, be sure to visit our website at cryptodecoding.com.

07:30We've got all the tools you need to stay ahead.

07:32And before you go, don't forget to hit like, share, and subscribe to Cryptodecoding for

07:37your daily dose of crypto decoding.

07:40Thanks for watching, and I'll see you in the next video.

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