Bitget’s BGB Token Burns Spark Possibilities for Growth Amid Deflationary Strategy Challenges

• Bitget is intensifying its deflationary approach by burning substantial amounts of BGB tokens, aiming to enhance long-term value.

• New real-world applications for BGB, including multi-chain gas payments, signal a strategic move toward increasing its utility and adoption.

• According to industry analysts, while Bitget mimics Binance’s token model, its current market position may hinder BGB from achieving similar heights.

Bitget embarks on an aggressive token burn strategy by removing millions of BGB to enhance value, leveraging new payment features for increased utility.

Bitget’s Token Burn Strategy

In a significant move, Bitget has executed a burn of 30 million BGB tokens during Q1 2025, effectively decreasing the circulating supply from 1.2 billion to approximately 1.17 billion. This reduction equates to a 2.5% decrease, underscoring Bitget’s commitment to enhancing the token’s value through scarcity.

Furthermore, on December 30, 2024, Bitget finalized a large-scale burn of 800 million BGB, marking a dramatic 40% reduction of the total supply. This shift brought the overall BGB tokens down from 2 billion to 1.2 billion, a move intended to increase the token’s desirability and underscore an ongoing commitment to strong financial governance.

Looking into the future, Bitget has mapped out a detailed roadmap for tokenomics, allocating 20% of profits from both the Bitget Exchange and Bitget Wallet towards quarterly buybacks and burns of BGB from 2025 onwards. This long-term strategic plan aims at sustaining and boosting the intrinsic value of BGB in the competitive crypto market.

Historically, the Binance platform has set a precedent for successful token burns, with over 59 million BNB tokens burned, contributing significantly to its value surge from under $1 in 2017 to a peak over $600 in 2024. The ongoing scarcity strategy employed by Binance has crystallized its position as a market leader in exchange-native tokens. Bitget appears to be charting a similar course, yet a critical question lingers: can BGB mirror the success of BNB?

Is Burning BGB Enough to Boost Price Like BNB?

BGB reached its all-time high (ATH) of $8.45 earlier in 2025, fueled by the major burn of 800 million tokens at the close of 2024, which indeed catalyzed immediate scarcity in the market. However, this performance is markedly less impressive compared to BNB’s trajectory. For BGB to achieve sustainable value growth, it must extend beyond mere supply reductions to significantly broaden its real-world applications.

Starting in January 2025, BGB became integral to the Bitget Wallet’s GetGas feature, allowing users to handle multi-chain gas payments. This enhancement enables users to pay gas fees on prominent blockchains such as Ethereum, Solana, and BNB Chain using BGB, USDT, or USDC, thereby removing the necessity for acquisition of blockchain-specific gas tokens.

Moreover, Bitget is integrating BGB into everyday financial transactions through its PayFi initiative and the Bitget Card, aiming to establish BGB as a viable medium for routine payments such as dining, travel, and shopping.

This strategic expansion underscores BGB’s ambitions to transition beyond just cryptocurrency functionality and blend with daily consumer activities, echoing similar strategic objectives observed with Binance’s BNB.

While Bitget is making commendable strides toward raising BGB’s profile, significant hurdles remain on the path to achieving BNB-like valuations. Firstly, the Bitget platform operates within a smaller ecosystem than Binance, which inherently limits BGB’s market penetration. Secondly, the uptake of newly introduced features such as multi-chain gas payments and PayFi will critically affect the demand and real-world integration of BGB.

Lastly, while Binance has cultivated years of brand loyalty, establishing a dedicated user base, Bitget is still navigating its positioning within the competitive landscape. For sustained growth, Bitget needs to effectively balance its approach of reducing supply while amplifying demand through tangible and applicable innovations in the market.

Conclusion

In conclusion, Bitget’s strategic initiative to burn BGB tokens reflects a significant step towards improving its tokenomics framework. However, to foster lasting success and value appreciation akin to BNB’s monumental growth, Bitget must not only focus on supply control but also amplify BGB’s applications in real-world scenarios. Achieving this balance will be essential for establishing BGB as a competitive player in the broader cryptocurrency ecosystem.