Everything you need to know about the Binance branded cryptocurrency
As of February 15, 2022, Binance Chain and Binance Smart Chain continue to host dapps in DeFi, games, and NFTs using the name BNB Chain. They take their new name from the currency that underpins their blockchain ecosystem, BNB. The new name further highlights BSC’s connection with the BNB token and the entire BNB ecosystem.
Most notably, the Binance blockchain ecosystem still entails two different chains:
- BNB Beacon Chain, previously Binance Chain
- BNB Smart Chain (BSC), formerly known as Binance Smart Chain
BNB Smart Chain is the blockchain we track here on DappRadar. Its EVM compatible has multiple consensus layers and hubs to multi-chains. At the same time, the native BNB token also changes 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.
What is BNB?
BNB is a cryptocurrency token created by Binance back in 2017. It was first issued and launched during an Initial Coin Offering (ICO) crowdfunding event between the 26th of June to the 3rd of July 2017. They initially issued BNB as an ERC-20 token on the Ethereum blockchain but quickly transferred it to the main Binance Chain as a BEP-20. The initial total supply of BNB was defined as 200,000,000 coins, but the supply gradually decreased due to regular coin burn events.
What’s it 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 for trading fees. Additionally, BNB is needed to pay gas fees when making transactions on the Binance 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.
Post mainnet launch, BNB spent much of its early existence grinding along a support line of around $20 to $30. Then at the end of January 2021, the price exploded, rising more than 1500% from around $40 at the end of January to more than $640 in May. Since being affected by BTC’s crash in May last year, it has recovered and is currently the fourth-largest cryptocurrency by market capitalization.
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, it’s a quantity over quality argument as 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.
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. Readers can check out the end-of-year report to get a deeper picture of their performance in 2021.