Everything you need to know about the Binance branded cryptocurrency
You may have heard of the BNB token in the dapp space, after all, it is everywhere. But this Binance cryptocurrency goes beyond the exchange, touching famous projects across the ecosystem. In this guide, you’ll get answers to the most common questions about the BNB coin – and you’ll even know how to track and analyze it for your own research. Let’s dive in!
What is the BNB token?
BNB is a cryptocurrency token created by Binance back in 2017. It was first issued and launched during an Initial Coin Offering (ICO) as an ERC-20 token on the Ethereum blockchain. However, it was quickly transferred to the main Binance Chain as a BEP-20.
While the initial total supply of BNB was defined as 200,000,000 coins, the supply gradually decreases due to regular coin burn events.
As you can see in the DappRadar Token Explorer, in August 2022, the BNB token total supply was $163,27 million – even in a plain bear market. It’s one of the most important cryptocurrencies in the market.
Where can I buy the BNB token?
As this cryptocurrency is integrated into the BNB Chain, you can buy it on markets in this network. The Binance exchange is the top choice, as it can be inferred, but you can also trade your BNBs via the DappRadar Token Swap.
We recommend caution when using any cryptocurrency exchange and also when investing in the market. If you’re curious, read the article 4 Tips on Blockchain Cybersecurity: Stay Safe in Crypto.
What is the BNB token used for?
BNB has several uses, but within the Binance Exchange ecosystem, it is used as a utility token to allow users to receive discounts when paying trading fees.
Additionally, you need BNB to pay gas fees when making transactions on the BNB Chain or a Binance decentralized exchange (DEX).
Moreover, the fee structure also changes according to trading volume and tier level of the account, so it is dynamic and can be checked daily. However, it is worth mentioning that it will always be much cheaper than transacting on Ethereum.
Crypto users can also use BNB to pay for several real-world services and items, such as HTC mobile devices, hotels and flights, or virtual gifts. You can find a list of all the outlets that currently support payment in BNB here.
In addition, holders can make donations to charity through the Binance Charity Foundation (BCF) project, which has become more relevant than ever in 2022 amidst the Ukraine crisis.
Understanding the Binance ecosystem
Most notably, Binance merged Binance Smart Chain (BSC) and the Binance Chain in February 2022 to form the new BNB Chain.
It is EVM compatible and has multiple consensus layers and hubs to multi-chains.
At the same time, the native BNB token also changed its name. It now stands for “Build and Build,” while they previously simply called it Binance Coin.
All this will now come together under the umbrella of the BNB Chain.
- Read further: What Is BNB Chain and How Does It Work?
What are users doing on BNB Chain?
Firstly, it’s important to mention that BNB Chain is home to some of the most used dapps in the entire industry and attracts the most user wallets.
Moreover, BNB Chain is leading the sector in attracting users, regularly seeing more than half a million wallets connect to its dapps every day, while Ethereum dapps see around 75,000.
Nonetheless, the Ethereum vs. BNB Chain discussion is a quantity over the quality argument. After all, Ethereum still dominates the money flow in the blockchain space.
After spending much of 2020 carving a solid niche in DeFi, BNB Chain pivoted to focus on GameFi, Play-to-Earn gaming, and NFT collectibles in mid-2021, attracting dapps that offered such services and which quickly rose to prominence.
Dapps like PancakeSwap provide the same benefits as Ethereum’s Uniswap, while Binance has its own branded NFT marketplace to host collectibles and several other marketplaces. While leading GameFi platforms like Mobox and BombCrypto prop up the gaming category.
BNB token price-performance
As might be expected, the value of the BNB token is directly related to the number of active wallets in the BNB ecosystem.
Today, BNB Chain is a major player in the blockchain space, under guidance from its charismatic leader, CZ, who successfully diversified the network and kept attracting users.
After Terra’s collapse in 2022, the BNB Chain emerged as the second largest DeFi blockchain. As you can read in DappRadar’s BNB Chain Report Q2 2022:
Having such resilience compared to other smaller chains puts BNB at an advantage as it is more likely to recover and recover faster than its competitors, who have suffered more debilitating blows.
Sara Gherghelas, analyst at DappRadar
Although the number of BNB token transactions has decreased since the beginning of 2022, our report shows that the chain is one of the best in this bear market.
How can I track the BNB token?
When looking for opportunities in the web3 space, it is very important to stay updated on the values of tokens like BNB.
Thanks to our excellent DappRadar Token Explorer, you can follow the price development of the BNB token – as well as other important tokens on this blockchain.
Moreover, if you are interested in managing your BNB-based crypto and NFTs, you will love to know the DappRadar Portfolio Tracker.
You can also analyze the best dapps opportunities on BNB Chain using the BNB Chain rankings.
Keep learning about the BNB token with DappRadar
Now you know better what the BNB token involves and how it is linked to BNB Chain projects. We at DappRadar always keep an eye on the cryptocurrency market and provide the best educational content out there.
If you want to be the first to hear about BNB’s top news and tutorials, follow our blog, Youtube channel, and Twitter account. We hope you liked learning more about this important cryptocurrency and that you’ll continue your learning journey with us!
The above does not constitute investment advice. The information given here is purely for informational purposes only. Please exercise due diligence and do your own research.
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