$BNB (Binance Coin) is the native cryptocurrency of Binance, one of the largest cryptocurrency exchanges in the world. Initially launched as an ERC-20 token on the Ethereum blockchain in 2017, BNB later migrated to Binance’s own blockchain, Binance Chain, and is now also used on Binance Smart Chain (BSC).
Key Uses of BNB:
Transaction Fees – Users can pay for trading fees on Binance at a discount using BNB.
Smart Contracts – BNB is used to pay gas fees on Binance Smart Chain (BSC), which supports decentralized applications (DApps) and DeFi projects.
Token Sales – Many Initial Coin Offerings (ICOs) and token launches on Binance Launchpad require BNB.
Staking & Yield Farming – Users can stake BNB to earn rewards or participate in DeFi protocols.
Payments – BNB is accepted for travel bookings, online shopping, and even payments in some stores.
BNB Burn Mechanism:
To reduce supply and increase scarcity, Binance periodically burns (destroys) BNB tokens. This helps maintain its value over time by reducing the total supply.
BNB’s Growth & Market Position:
BNB is among the top cryptocurrencies by market capitalization and has played a crucial role in Binance’s ecosystem. Its adoption has expanded beyond Binance, making it a key asset in the crypto space.