The primary contributing factors of the surge in the price of Binance Coin are fundamental factors such as a decreasing circulating supply, the multi-billion dollar business it represents, the performance of Binance in the bear market, and the prospect of a decentralized exchange. On January 16, the Binance team burned $9.4 million worth of BNB in a coin burn, eliminating a portion of the circulating supply of the crypto asset. The timing of the coin burn and the beginning of a short-term rally of BNB coincided. From January 16, following the successful elimination of 1,623,818 BNB, the price of the asset surged substantially. Initially, BNB was issued as a means to finance Binance in the early stages of the company. After its establishment as a top exchange, Binance has been using 20 percent of the firm’s profits to buy back BNB and burn the asset, decreasing the supply of BNB.