Updated on January 23, 2023 02:24 PM
Binance Coin BNB: Know the definition of BNB, uses cases of BNB coin, BNB coin burn, BNB price history, and how the BNB chain works.
Binance Coin (BNB) is the native token of Binance and is traded on various exchanges. This centralized exchange, launched in 2017 by Changpeng Zhao and He Yi, has quickly become the go-to platform for both novice and experienced traders.
In terms of trading volume and market share by online traffic, Binance Coin (BNB) has surpassed cryptocurrency exchanges such as Krakken and Huobi Global. Binance has also created a decentralized exchange called Binance DEX.
Binance also has developed the BEP20 token, an extension of Ethereum's ERC20 standard. BEP20 tokens serve as the foundation for the creation of altcoins on the BNB network. BEP20 is popular for making meme tokens and DeFi exchanges like pancake and pancake bunny swap.
Moving on to the focused topic i.e Binance Coin (BNB), let’s get into some details as the definition of BNB, uses cases of BNB coin, BNB coin burn, BNB price history and BNB price prediction, and how the BNB chain works.
As per Binance’s official website, “BNB is the cryptocurrency coin that powers the BNB Chain ecosystem. As one of the world's most popular utility tokens, you can trade BNB like any other cryptocurrency and use BNB in a wide range of applications and use cases.”
With a total amount of 200 million coins, Binance Coin (BNB) was initially launched as an ERC-20 token on the Ethereum network. The ICO promised 100 million BNB, however, the current total supply is lower owing to periodic burning events and a real-time burning mechanism.
In actuality, there are two tokens: BNB and BSC, or Binance Smart Chain, which allows the coin to switch to other coins using smart contracts but only accepts BNB as payment. BSC was built as an extension of BNB to allow it to communicate with intelligent contract-based coinage. They are always swapped at a 1:1 ratio. This was done to prevent BSC transactions from interfering with or slowing down transactions on the original BNB chain.
Binance Coin (BNB) cannot be mined using mining equipment. Instead, it employs the Byzantine Fault Tolerance consensus process, in which validators earn BNB tokens by validating network blocks. It is comparable to proof-of-stake but does not qualify because all tokens have been pre-mined. Furthermore, Binance Coin (BNB) is undergoing a major burn campaign, to burn 50% of all tokens over time.
Binance Coin (BNB) started in July 2017 on the Ethereum blockchain as the token ERC-20 before becoming the native currency of Binance's blockchain, the Binance Chain. Throughout its existence, the firm has introduced two cryptocurrencies that it created: Binance Coin (BNB) and BinanceUSD (BUSD) which is a stablecoin.
BNB was introduced via an Initial Coin Offering (ICO) that ran from June 26th to July 3rd, 2017 - 11 days before the Binance Exchange debuted for trade. The initial coin offering price was 1 ETH for 2,700 BNB or 1 BTC for 20,000 BNB. Even though BNB was founded through an ICO, it does not provide users with a claim on Binance revenues and does not constitute an investment in Binance.
It distributed 10%, or 20 million, BNB tokens to angel investors, 40%, or 80 million, tokens to the founding team, and the remaining 50%, or 100 million, tokens to ICO participants. Almost half of the funds received during the ICO process were planned to be used for Binance branding and marketing, with the remaining one-third utilized to construct the Binance platform and update the Binance ecosystem.
In 2017, Binance Coin (BNB) was established as a utility coin for reduced trading fees. However, its applications have now spread to a wide range of systems and platforms. Transaction fees on Binance.com, Binance DEX, and Binance Chain are paid using it.
Binance Coin (BNB) employs an Auto-Burn method to decrease its total supply to 100,000,000 BNB. The BNB Auto-Burn mechanism regulates the quantity of BNB that will be burnt dependent on the price of BNB and the number of blocks created on the BNB Smart Chain (BSC) throughout the quarter. This provides the BNB community with greater transparency and predictability.
Binance has been holding these burning events regularly. The most recent Binance Coin (BNB) burn occurred on October 13, 2022, when Binance burnt a total of 2,065,152.42 BNB, equivalent to $574,800,583.92 in tokens. Binance's 21st quarterly BNB burn is the greatest in terms of US dollars.
Binance also has a program called the BNB Pioneer Burn Program, which assesses cases where BNB holders have unrecoverably lost BNB and repays them by subtracting the amount from the next BNB burn.
Binance Smart Chain (BSC) is a blockchain network designed for the implementation of smart contract-based applications. BSC operates in conjunction with Binance's native Binance Chain (BC), giving customers the best of both worlds: BC's large transaction volume and BSC's smart contract features.
Additionally, Binance Smart Chain incorporates the Ethereum Virtual Machine (EVM), allowing it to run Ethereum-based apps like as MetaMask.
The platform's goal is to enable developers to create decentralized apps (DApps) and to assist consumers in managing their digital assets cross-chain with low latency and high capacity.
The Binance Chain was launched to the crypto market in April 2019, with the main goal of providing a decentralized and ultra-fast trading solution. Along with the Binance Chain, they also built a DEX to provide greater outputs.
Binance released the BNB Smart Chain (BSC, previously Binance Smart Chain) in September 2020, a blockchain network that operates concurrently with the BNB Beacon Chain. This implies that Binance Coin (BNB) is now available in three varieties:
BNB BEP-2 on the BNB Beacon Chain.
The BNB BEP-20 is part of the BNB Smart Chain (formerly Binance Smart Chain).
BNB ERC-20 on the Ethereum network.
Binance sought to change the terrible user experience given by other DEXs by creating the Binance chain. Binance aimed to provide the finest user experience possible and to provide customers with professional transactions.
Binance Chain's services are not limited to DEX; some of them are listed below:
Binance exchanges digital assets, including its own currency BNB.
To govern supply and issuance, tokens can be minted, burnt, locked/unlocked, or frozen/unfrozen.
The creation of new tokens following the BEP-2 standard. As an example, consider the BNB token, a BEP-2 token on the BC network.
Binance Coin (BNB) has numerous applications both inside the BNB Chain ecosystem and beyond, therefore it is up to the bearer to determine how to utilize his or her BNB. BNB, for example, may be used to pay for travel expenditures, purchase virtual presents, and much more. Users are reported to have spent millions of BNB on travel expenditures, products payment, lending, rewards, smart contract creation, and other transactions.
Many individuals utilize BNB to pay trading fees as well. Approximately 2 million consumers have used BNB to pay for trading fees of more than 40 million BNB on more than 127 billion transactions on Binance's trading platform alone.
To sum up, the Binance Coin has various applications outside of the Binance exchange, including:
Binance coin or BNB was traded at 15 cents at the time of its ICO (Initial coin offering). At the time of writing, the BNB token is currently ranked 4th in the global crypto market chart. On 5 Oct 2021, the BNB coin reached it's All time high valued at $665 per BNB.
Since then, Binance Coin (BNB) has experienced a lot of price fluctuations and volatility. Amid the FTX collapse, the BNB token made a stable follow-through without fluctuating much. The token is almost 54% down from its ATH. It has a circulating supply of 159,970,827 BNB coins and a max. supply of 200,000,000 BNB coins.
For the first four years, Binance Coin (BNB) was quite steady.
Binance Coin (BNB) launched on July 26, 2017, for $0.10.
It soared up to $8.41 by the end of 2017 on December 31.
Even though 2018 was recognized for the massive crypto crash, the price per coin stayed pretty constant.
By June, the price had risen from $6 to $33 for the first half of 2018.
It subsequently reversed direction, falling from a high of $37.13 to $13.69 on New Year's Eve 2018.
Despite the fall in the later part of the year, the token performed admirably in the first half given how poorly the crypto market performed generally during the crash.
2019 had little movement, with the price remaining between the teens and low 20s throughout the year.
It wasn't until the end of 2020 that BNB began to experience any growth.
2020 began strongly until the Corona Virus Pandemic was reported, which drove the price down from the mid-20s to around $9 in March.
During the worst of the epidemic, the price progressively increased.
By the end of September, the BNB price had dropped to a little under $30.
Throughout the fourth quarter of 2020, the price remained in the mid-20s.
It wasn't until the end of December that the price began to rise, reaching $37 at the end of the year.
BNB's breakthrough year turned out to be 2021.
The preparations for 2021 had already begun in mid-December 2020.
By February, the price had exploded and was on its way to the moon!
BNB began at $52 at the beginning of February and has risen to $239 at the end of the month!!
Just before the close of the month, the price reached $332!
The price increased the highest in April, reaching an all-time high of $675.98 on May 2, 2021.
That peak did not endure long, as it precipitated a sell-off that began on May 11.
In the 20 days after its peak on May 2, the price has dropped to $262, losing more than half of its worth.
Over the next three months, the price fluctuated between $262 and $427.
It remained this way until August, when it finally acquired support and some upward momentum, rising above $500 by the end of the month and hovering there for a few days.
BNB performed steadily in the crypto winter which started in 2022. The currency declined from $465 to $183 (Marked the lowest) on 13 Jun 2022.
From there, it took a decent up trend and reclaimed its support of $283.
The price has fallen along with the rest of the crypto market as a result of the FTX crash in November, and it is now trading slightly around $300.
Binance Coin (BNB) is subjected to great volatility and price fluctuations. Any analytics company predicting the price of any crypto or digital assets is based on some tools and algorithms. The below price predictions are made by the analytic firm Bitnation. It’s just a prediction and not any investment idea.
As BNB continues to hit new highs, our algorithm predicts that in 2023, BNB will reach a maximum price of $840.90, with an average price of $750.80 for the year. In the event of a bear market, the lowest price BNB might reach in 2023 is $660.70.
We anticipate that BNB will rise rapidly in 2024 as crypto obtains traction in a variety of commercial sectors. As a consequence, the price might rise to $1,141.22, with an average of $1,051.12. The minimum price for BNB could be $961.02.
With the continuous capital expansion in the crypto market, BNB might reach a maximum price of $1,441.54 with an average price of $1,351.44 in 2025. If a sell-off happens, the minimum price predicted by our model is $1,261.34.
Given the global growth of BNB, the currency might reach a maximum price of $1,741.86 by 2026, with an estimated average price of $1,651.76. In addition, the lowest price for the same year maybe $1,561.66.
BNB popularity will continue to surge in 2027, as regulators begin to recognize that crypto is here to stay. BNB may achieve a maximum price of $2,042.18 by 2027, followed by a minimum price of $1,861.98. The 2027 average price is predicted to be $1,952.08.
Due to the increase over the previous five years, we will witness another big bull in 2028, which means that BNB investors may see BNB reach a high of $2,342.50 and a low of $2,252.40. Our technical analysis suggested a minimum price of $2,162.31.
According to market expectations, BNB will continue to rise to $2,642.82 in 2029. If BNB fails to reach this support, it might average around $2,552.72 and bottom out at around $2,462.63.
This year will be remembered for BNB; in 2030, it is estimated that BNB will hit a new ATH of $2,943.14, with a new minimum price of $2,762.95. In the worst-case scenario, BNB will be worth $2,853.04 in 2030.
BNB is the cryptocurrency coin that powers the BNB Chain ecosystem. BNB coin is the native token of Binance.
Dust in the cryptocurrency realm refers to any number of coins or tokens that are so few that they are typically overlooked. They're simply the leftovers from transactions. Binance allows traders to exchange their dust for BNB.
BNB coins were allocated as part of the ICO to different parties, including angel investors and the Binance founding team.
Here's a quick rundown of how BNB tokens were first distributed:
40% of the founding crew (80 million BNB)
10% for angel investors (20 million BNB)
50% for public sale (100 million BNB)
Binance Coin has various applications outside of the Binance exchange, including the ability to:
Make credit card payments.
Pay for travel arrangements (on select websites)
Buy virtual gifts.
Make loans and transfers.
Donate to charity.
In 2019, the BNB Beacon Chain (BEP2) was released. This blockchain was designed to enable users to transmit or exchange BNB at a quicker and more cost-effective rate. BEP2 BNB coins are BNB tokens that may be found on the BNB Beacon Chain.