Over the years, plenty of assets and projects have appeared in the crypto landscape, being appealing for users with different needs. For example, the Binance coin (BNB) was launched by Binance, one of the most important crypto exchanges, to facilitate trading operations on its platform. The Binance Coin serves numerous purposes, including paying for the transaction fees on the network. At first, the Binance Coin was issued on the Ethereum platform, but soon after, it migrated to its own blockchain, the Binance Chain, designed to process efficient and fast transactions. The platform uses a Delegated Proof-of-Stake (DPoS) consensus mechanism, which has great functionality and generally experiences fewer issues.
The BNB prediction looks positive, as the price of the virtual coin could experience a gradual increase, where the value in 2024 will reach $594.95, in 2025 $624.69, and in 2030, it can have $797.29. In this article, we will offer you all the information you need about the BNB coin, so keep reading to learn more.
The history of the virtual coin
As Binance launched the BNB coin, we need to talk a little about the history of the exchange. Binance was developed in July 2017 with the help of an Initial Coin Offering (ICO), where BNB tokens were spread among numerous participants, including the founding team of Binance and angel investors, as this was a stage of the ICO.
During the ICO, 100 million BNB tokens were available for public sale, with each coin selling for 15 cents. From this phase, the Binance exchange raised $15 million after receiving transactions in Ethereum and Bitcoin. Of this amount, 35% was used to improve the exchange and platform system, and 50% was utilized for the brand’s marketing, branding, and education. The rest of the 15 % was kept aside for unusual circumstances and emergencies.
Two years later after the Initial Coin Offering, more exactly in 2019, Binance launched its native blockchain, the Binance Chain, which has its own coin, BNB, where users can receive a new coin in exchange for the old one from the Ethereum platform.
How does the Binance Coin function?
The Binance Coin works similarly to the other virtual coins on the market, meaning that it has the same volatility, where the price can fall or rise in value at the moment that people trade and use it. Additionally, as with any other coin, people can hold the crypto in exchange or wallets and send the virtual coin to other addresses when they make a payment.
The Binance Coin functions on the BNB Chain, previously known as the Binance Chain and the Binance Smart Chain, which is a blockchain tailored for optimal performance. In more detail, the BNB chain is formed of the BNB Smart Chain and the BNB beacon chain, where the first one allows BNB holders to participate in the blockchain operations, including voting and staking. The BNB beacon is the consensus layer, having hubs to multi-chains.
What do investors and participants use BNB for?
The Binance Coin has a strong connection with the Binance exchange itself, as the virtual asset was the vehicle used to raise funds for the Binance exchange. Soon after the crypto exchange was launched, Binance became one of the most popular brands in the crypto ecosystem, which besides being an exchange platform, it is also a network with its own native coin, BNB.
Currently, individuals can use BNB to pay for the transactions they make on the crypto exchange, but it has also served as a method to reduce the fees from Binance for those who hold BNB. In addition to these utilities, BNB also served as a way to pay for other Binance products, and over the years, BNB has become a cryptocurrency that is used not only in exchange but also for merchants worldwide. This is why BNB is now utilized in various areas, including the entertainment industry, where individuals worldwide can pay both for virtual gifts and for physical goods.
The price dynamics of BNB over the years
Over the years, the BNB’s price has fluctuated a lot, like any other digital coin, where the value can increase or decrease quickly. At first, during the initial Binance ICO, BNB had a value of $0.10 per token, but things have changed over the years, and the virtual coin has managed to gain a market cap that surpasses the valuation of $70 billion.
During some periods, the BNB was traded at more than $600 per coin, and the prices will increase even more in the future.
What are the advantages of the Binance Coin?
Binance coin has plenty of advantages, where the most important ones are the following:
- Low fees: Binance Coin functions on a unique PoSA consensus mechanism that processes transactions with less computational energy and without needing various validator participation, and as a result, the fees are reduced compared with other important digital coins, including Ethereum and Bitcoin.
- It offers numerous benefits to Binance users: Holding BNB can help individuals reduce fees for each trade and gain access to special content, including exclusive NFTs.
- Programmability: The BNB Smart Chain uses smart contracts, meaning that the network is hugely programmable, and individuals can take advantage of innovations anytime. Additionally, any protocol or app built on the platform can interact.
- Tokenization: Nowadays, tokenization has improved significantly, and any item that has a digital format can be tokenized on the BNB Chain. Even though tokenization is commonly used in the NFT space, it has also been adopted in real-life applications, including art, real estate, and even gold.
As you can see, even if BNB is a new project, it still has many advantages and can increase its value and reputation in the coming years.