Binance Coin (BNB) is a digital coin issued by Binance, a popular online crypto exchange. The coin was initially based on the Ethereum network, but it later became a native token to the BNB chain.
Binance Coin Overview from Godex
The popular cryptocurrency can be traded with a wide array of other cryptos. As such, you can compare BNB vs CRO and explore many other trading pairs on the most popular exchange platforms.
Binance Coin Explained
Binance coin is the native coin of the Binance exchange. Binance is one of the largest cryptocurrency exchanges by trading volume, and it features a unique ecosystem that’s based on blockchain and decentralization.
It was initially created just for discounted trading fees, but the exchange uses it for a wide range of purposes nowadays.
Binance Coin History
The Binance exchange was launched in 2017, and so was the Binance coin (BNB). The coin underwent an ICO, which raised $15 million in token sales. The collected funds were mainly used for the branding and marketing of the crypto exchange and the coin itself. One-third of the collected money was saved to build the Binance platform and its ecosystem.
In a short period, BNB was recognized as one of the essential coins and has been in the top 10 list of the most popular coins on Coinmarketcap for a long time. Right now, it’s the fourth-largest coin in the world, after BTC, ETH, and USDT.
How Does BNB Work?
BNB is a crypto asset just like any other cryptocurrency, meaning its value is susceptible to high volatility. People can buy BNB on crypto exchanges and sell it for other cryptocurrencies or fiat. Moreover, BNB can be held in compatible wallets for those who decide to hold it instead of actively trading the popular coin.
BNB stands out from the pack because Binance works hard on improving the financial infrastructure and incorporating BNB even more into its operations. For example, the BEP-95 burning mechanism made BNB even more deflationary than before. Moreover, gas fees were adjusted on the blockchain, with fees being burned to increase decentralization. All in all, Binance has been working hard on improving its ecosystem, thus improving the coin as well.
Use Cases of Binance Coin
BNB can nowadays be used for a wide array of cases. First, you can use it on many different platforms as a payment method, including HTC, the popular smartphone manufacturer. Several travel sites, such as TravelbyBit and Trip.io accept BNB for hotels and airfares.
Entertainment is a huge branch for BNB, as you can use it in many games, including the popular Metaverse-inspired games such as Decentraland and Axie Infinity.
There are plenty of services that you can pay for with BNB, such as Canya, where you can hire freelancers, or BitTorrent, the popular torrent downloading software.
It goes without saying that Binance Coin is available for a range of financial services, such as Nexo, ETHLend, MOeda, NAGA, and more.
BNB Price Dynamics
Throughout 2017, the price of a single BNB was between $1 and $2, and in January 2018, it became part of the crypto-investing trend, with its price increasing to approximately $20 at one point. After that initial wave, the price ranged between $4 and $15 throughout 2018, and the coin started receiving even more popularity in 2019 when it reached $37+.
As it turns out, it was just the beginning of BNB’s popularity, and the real price increase started at the beginning of 2021. By May 10, 2021, BNB reached its all-time high, which was $690.93.
The max supply of BNB is set to 165,116,760 BNB, and 99% is already minted and in circulation, although a small portion of them is being burned.
Does Binance Coin Have a Future?
Binance Coin is here to stay. It can be used for many purposes and exchanged for hundreds of other coins, even the less popular ones: you can easily swap BNB to WAX and other similar cryptocurrencies.
More importantly, the Binance exchange and its team will continue to upgrade the Binance coin and find new uses for it. As the coin keeps growing, it will probably become more accepted by various businesses, which could further improve its value.
However, the crypto world is unpredictable, and the best thing you can do is follow the latest developments related to BNB before making any sudden moves.