Binance Coin BNB Uses, Support, and Market Cap

As a token, BNB was initially launched on the Ethereum network based on the ERC-20 token standard. However, once Binance launched its own blockchain, BNB became the native coin of the BNB Chain. Hence, as of writing, there are three versions of the asset, which I’ll discuss later. We’ve mentioned before that Binance created BNB to incentivize participation in its ICO by allowing token holders to claim discounts following the platform’s launch. However, there was a big possibility that the value of BNB would fall once the discount period expired after 4 years.

But even after the rebate decreases, users are still likely to own leftover BNB that they might as well continue to use. As a dominant cryptocurrency exchange, we can expect Binance’s coin to continue to circulate widely. The more its adoption grows, the more valuable and useful it becomes. The final key to Binance’s success is the competitive trading fees it charges. It’s free to fund your account, and orders are charged a simple 0.1% trading fee. The trading fee means you’ll want to limit how frequently you make trades since you’ll lose 0.1% every time you transact.

The Technology Behind BNB: Blockchain Integration

• As a dominant cryptocurrency exchange, we can expect Binance’s coin to continue to circulate widely.
• Currently, all transaction fees paid using BNB on both the Spot and Margin markets are subject to a 25% discount, while those made in the futures market get a 10% discount.
• BNB will be used as the native token for various applications within the Binance platform, including the Binance DEX and Binance Launchpad.
• For example, BNB can be used as a payment method on various e-commerce platforms, travel booking websites, and in other industries.
• Additionally, the integration enables fast and low-cost transactions, making BNB an attractive option for users on the Binance platform.

It all functions within a singular decentralized platform, made possible by BNB Chain and the BNB coin. Validators have very specific requirements, and this role is not recommended to those who are new to the crypto scene. Since we’ve mostly covered the topic of what is BNB, you might wonder why this particular coin stands roll your own javascript runtime out from others. Let’s say you have BNB that you don’t necessarily need right this moment, but you also don’t want to leave it sitting out, either – you can choose to employ your coins.

BNB Burns Explained

New cryptocurrencies are listed on the Binance exchange, which provides a seamless marketplace for trading in a variety of established and new virtual tokens. When you stake your coins, you can select a preferred validator, and your BNB will help them achieve their goals. In turn, validators share their reward for helping maintain the blockchain with the delegators who pooled their stakes in a show of support – a win-win situation. When discussing what is Binance coin, we can’t overlook one important detail, and that’s the aforementioned burning process. Exactly as the name suggests, it’s the “destruction” of the coins, and it can be done by individual users, as well as Binance itself.

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This places Binance Coin among the top cryptocurrencies in terms of market capitalization. Additionally, it’s crucial to analyze BNB’s position among the biggest cryptocurrencies in terms of market cap and trading volume. BNB also offers discounts on trading fees, incentivizing traders to hold and use the token. You’ll also learn about the mechanism of BNB burning, which ensures value stability.

By analyzing its token supply, use cases, and token economics, you can gain insights into the factors that contribute to BNB’s role within the Binance ecosystem. Blockchain integration refers to the seamless integration of BNB into this blockchain, allowing for secure and decentralized transactions. BNB tokenomics refers to the economic model and distribution of BNB, which includes factors such as its limited supply and its use for trading fee discounts on Binance. Binance has done a great job building an intuitive user interface without sacrificing the charts, graphs, and other information you need to make informed investment decisions. Trading is easy and only requires a few clicks the 10 best places to buy bitcoin in 2021 revealed to select the currency pair you’d like to trade and create the order. The user interface is available online and also as a mobile app for iOS and Android.

BNB is now among the top 30 cryptocurrencies in the world by market cap. This is possible thanks to the metadata that defines ownership of assets. In the case of Binance, the crypto exchange began the program in late 2017 and has so far burned over 38 million tokens via its quarterly burn to date.

Above all, BNB Chain remains a community-driven, open-source, and decentralized ecosystem. The support of its community of users, developers, validators, and delegators is vital to its health. With BNB Chain gaining major technical updates, it’s time for the community to take a decisive step toward MetaFi.

They use smart contracts and, in theory, could run themselves endlessly as long as users provide sufficient liquidity. Currently, BNB Chain seeks to establish itself as a community-driven, open-source and decentralized ecosystem running on several chains. You can’t fully understand what is Binance coin without delving deeper into the journey of this crypto asset.

There is an initial maximum supply of 200,000,000 BNB coins, of which 168,137,036 are currently in circulation as of September 2021. Understanding the different forms of BNB, its applications, and the BNB Chain ecosystem is crucial for anyone looking to participate in the Binance ecosystem. Storing and managing your BNB coins securely is crucial to ensuring the safety of your investment. There are several types of wallets that support BNB, each offering different levels of security and accessibility. BNB is available on Binance.US, although not many other exchanges offer it. On Binance.US, you can trade BNB in exchange for U.S. dollars, non-fungible token nft bitcoins, Tether (USDT), and Binance’s own stablecoin, BUSD.

Most crypto exchanges have their own tokens which are commonly used to pay for trading fees. BNB’s utility as a means of reducing trading fees is one of its most attractive features. On the Binance Exchange, each trade incurs a standard fee of 0.1%, which is determined by your monthly trading volume and BNB holdings. You can either pay the trading fees using the assets you are trading or opt to pay with BNB coin for a special discount. Binance Coin is the cryptocurrency issued by the Binance exchange and trades with the BNB symbol.

These are just some of the few ways you can make use of your BNB tokens. More uses are discovered and added regularly, and this makes BNB even more valuable. At the end of the token sale, all 100 million BNB tokens were sold off at an average of about $0.15, bringing in around $15 million. While we strive to provide accurate and up-to-date information, we cannot guarantee the accuracy, completeness, or applicability of any information provided. The views and opinions expressed on this blog are solely those of the authors and should not be construed as professional advice.