Well, mostly is to keep BNB as a relatively supervised coin without letting its numbers get out of hand. While there are both pros and cons to this strategy, keeping a lid on the “coin population” could help boost its longevity. ICOs not only give out potential assets – you usually also need cryptocurrency in order to participate in the first place.
As one of the most famous GameFi creations in history, Axie Infinity continues to attract the attention of the entire industry. With the “Atia’s Legacy” project, Axie will expand into the massively multiplayer online role-playing game (MMORPG) genre in 2025. In December 2020, Airbnb went public in one of the largest initial public offerings (IPOs) of the year.
However, it is important to understand that much bitcoin volatility is common but why of the current value, development and activity around BNB Chain can be traced back to Binance.
What’s the Difference Between BNB and Bitcoin?
Binance coin (BNB) is used for various activities within the Binance ecosystem, including trading, token sales via the Binance Launchpad and staking. BNB holders also benefit from reduced transaction fees and can access special features on the Binance CEX. The crypto market is very volatile, so it’s impossible to be 100% sure about any token. However, some of the holders of BNB will probably agree the coin has a growing potential, tied to some of the more innovative applications in the industry. The benefits of the coin are also accompanied by a steady position in the market.
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In 2022, despite a bear market, BNB demonstrated remarkable resilience as Binance restructured its brand, grouping its blockchains under the name “BNB Chain”. Remember that crypto prices are extremely volatile, and you should always do your own research before risking your capital. Some apps also allow users to use Binance Coin to split expenses and pay friends and relatives.
BNB Chain-based smart contracts use a universal programming language that makes them compatible with other blockchains, leading to cross-chain interoperability. The designers have optimized the network to handle larger transaction volumes and made it competitive. BNB stands as a testament to the dynamic nature of cryptocurrencies, evolving from a simple utility token to a cornerstone of a java developer average salary in amsterdam 2022 the complete guide software development vast blockchain ecosystem.
Markets
Merchants can also accept BNB as a form of payment, giving customers more options in terms of payment methods. BNB has several use cases, including paying for transactions on the Binance Exchange. Historically, BNB has been used as a method of fee reduction on the Binance crypto exchange, with customers of the exchange paying lower fees by holding BNB and paying platform fees in BNB. Binance Chain focuses mainly on fast trading and simple token transactions, while Binance Smart Chain supports smart contracts and decentralized applications. Regular token burns reduce BNB’s total supply over time, which can create scarcity and potentially support price appreciation.
Users harness BNB for many different purposes, including paying trading fees, governance (making decisions about the blockchain ecosystem) and staking. Users can also receive airdropped tokens by subscribing their BNB to Binance Simple Earn. Since then, its uses have expanded to numerous applications on a wide range of platforms. It is used to pay transaction fees on Binance.com, Binance DEX, and Binance Chain. More specifically, using the native digital asset of this blockchain ecosystem can cut futures trading fees by up to 10% and spot/margin fees by as much as 25%.
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- Meanwhile, CoinDesk Data’s latest Exchange Review report revealed that Binance saw $2.63 trillion in futures trading volume last month, a new monthly record.
- Cryptocurrencies markets are unregulated services which are not governed by any specific European regulatory framework (including MiFID) or in Seychelles.
- BNB enables users to access exclusive investment opportunities and passive income options.
The BNB Chain operates with a Proof of Staked Authority (PoSA) consensus mechanism featuring 21 validators, enabling fast (3-second) and low-cost transactions. Compatible with the Ethereum Virtual Machine, it supports the development of decentralized applications while maintaining high security standards. For investors, BNB presents an interesting risk/reward profile in 2025, with growth potential supported by its mature ecosystem and deflationary policy. Its integration into a functional ecosystem and excellent liquidity make it a reasonable component of a diversified crypto portfolio, provided one remains aware of the risks inherent to this asset. Between 2017 and early 2021, BNB’s price generally fluctuated between $5 and $32. A major turning point came in April 2019 with the 10 best places to buy bitcoin in 2021 revealed the launch of the Binance Chain and the migration of BNB tokens to the BEP-2 standard.
The first phase happened between the 1st and 7th and saw the sale of BNB tokens at 2,700 tokens to 1 ETH coin. In the second and third phases, that rate was reduced to 2,500 and 2,300, respectively. This was a deliberate plan to create artificial urgency for investors to buy the tokens sooner rather than later. The availability of BNB in these different forms allows it to serve various purposes and power numerous applications in the crypto ecosystem. This versatility has played a crucial role in BNB’s rapid growth and widespread adoption. It is not like a share of corporate stock, in that it is not backed by the revenue or earnings of Binance.
Coincodex5 is very bullish on BNB with a 2024 high price target of $1k, which would imply a 300% surge from its current price point. According to statistics, Binance Smart Chain is burning up to 860 BNB every day thanks to BEP-95. Until February 2022, Binance and CZ have made an announcement that they will launch the BNB Chain to develop MetaFi.
BNB enables users to access exclusive investment opportunities and passive income options. As a result, using BNB can help active traders minimize costs, making it highly attractive for frequent users of the Binance platform. The banking product interest rates, including savings, CDs, and money market, are accurate as of this date. This allows us to maintain a full-time, editorial staff and work with finance experts you know and trust. We use cutting-edge AI models to forecast future prices for stocks and crypto.
BEP-95 will continue to burn tokens even after it has passed the BNB 100 million threshold of BNB quarterly burn. BNB (short for Binance Coin) is a cryptocurrency created by Binance, one of the world’s largest crypto exchanges. Originally launched in 2017 as an ERC-20 token on the Ethereum blockchain, BNB later migrated to Binance’s own blockchain, the Binance Chain. Binance Coin has more utility within the Binance ecosystem than it does sitting in a wallet. If you are an active trader or investor using the Binance exchange, you want to keep your BNB on the platform.
- As of 2025, BNB has become one of the top 5 cryptocurrencies by market capitalization, boasting over 223 million holders and an active developer community.
- Along with Bybit and Crypto.com, it was one of the largest exchanges by spot trading volume.
- Hotel unions have also lobbied for tighter controls, and in some cases, Airbnb has challenged local laws in court.
- Bitcoin was created to solve the double-spending problem in digital cash systems and eliminate reliance on centralized authorities.
- In terms of developing the gaming sector on the BNB Chain ecosystem, we could see that throughout recent years the network has also achieved impressive milestones.
- 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.
No one knows the login codes; therefore, the assets that land there will not be used. The diverse range of use cases it has underscores its importance within the crypto ecosystem. The network offers high performance and low fees, while utilising the Binance Bridge to connect to other blockchains. BNB Chain has a strong ecosystem of dApps, wallets and blockchain explorers, while also offering significant grants to help support new and existing projects. To maximize your rewards using BNB on Binance, consider participating in Binance Launchpad projects, utilizing BNB for trading fee discounts and engaging in staking opportunities.
Beyond the increase in user numbers, we also should take a good care at the economic value. The TVL of BSC increased by 58.2%, from USD 3.5 billion in 2024 to USD 7.2 billion till now. When considering trading volume, the network currently processes nearly 1.4 million daily transactions. In terms of developing the gaming sector on the BNB Chain ecosystem, we could see that throughout recent years the network has also achieved impressive milestones. By leveraging the solid foundation built over many years, BNB Chain is focusing on ambitious strategies and technological advancements to reach 2025.
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