From a practical tool for enjoying discounts on transaction fees to a strategic asset that is eagerly included in the asset reserves of NASDAQ-listed companies, BNB has completed a magnificent transformation over eight years.
On August 21, the price of BNB (Binance Coin) broke $883, setting a new historical high, with a market cap firmly ranking among the top three cryptocurrencies globally. This crypto giant has completed a transformative leap from a functional exchange token to a global strategic asset since its inception in 2017.
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01 Origins and early value, transaction fee discounts open the market
In 2017, BNB was born alongside the inception of the Binance exchange. Initially, it was just a simple Ethereum ERC-20 token, with a total issuance of 200 million, of which 50% was sold to the public through ICO.
The early key value proposition was transaction fee discounts. Users enjoyed substantial discounts when paying fees with BNB during trades on Binance. The first-year discount was as high as 50%, 25% in the second year, and decreased year by year.
This practical feature led early users to purchase BNB as 'transaction fuel', even creating a phenomenon of 'buying some BNB to hold before each transaction.' This 'instant savings' experience became the first touchpoint for users interacting with BNB.
02 VIP system and identity symbol, holding amount determines user status
Binance quickly launched a VIP tier system, directly linking BNB holdings to user identity. The amount held not only reflects wealth disparity but also status disparity.
API players especially value this system: VIP1 enjoys lower fees, VIP3 has higher API rate limits, and high-tier users have dedicated account managers. A popular saying in the community at that time was: 'It's not that you can't, but that you don't have enough BNB.'
BNB is no longer just a simple utility token; it has gradually become a form of identity token, where holders not only enjoy practical functions but also gain recognition within the community.
03 Burning mechanism and creation of scarcity, deflationary model supports value
Binance established a dual-token burning mechanism: automatic quarterly burns and real-time burns based on BEP-95. This mechanism continuously reduces the total supply of BNB, aiming to eventually bring the total down to 100 million.
In April 2025, BNB completed its 31st quarterly burn, destroying 1,579,000 BNB at once, worth about $916 million. To date, the total supply of BNB has decreased from the initial 200 million to approximately 139.3 million.
This transparent deflationary mechanism allows users to feel that 'every transaction is making BNB scarcer,' creating a sense of ritual in co-creating value. The deflationary expectations of BNB are now firmly etched in investors' minds.
04 Charitable empowerment and social value, BNB becomes a tool for public welfare
In 2018, Binance initiated the Binance Charity Foundation (BCF), making BNB the primary donation asset. This initiative allowed BNB to transcend its financial attributes and acquire social value.
In August 2025, Binance Charity airdropped $1.2 million worth of BNB to users affected by floods in southern Taiwan. This charitable practice won Binance widespread goodwill, making BNB the 'charity token' of the Web3 world.
Charitable empowerment has made BNB not just a money-making tool, but also a carrier of positive energy to change the world, enhancing brand reputation and social impact.
05 New listing platforms and wealth effects, Launchpad ignites demand
Between 2019 and 2025, Binance launched the Launchpad and Launchpool platforms, leading to the second leap in BNB's value. Through these platforms, users can use BNB to participate in the initial issuance of new project tokens.
Projects like BTT, MATIC, AXS have brought 10x, 20x returns, creating an astonishing wealth effect. Investors even specifically took loans to buy BNB, just to gain a larger share of new listing quotas.
BNB is no longer just a tool for 'saving transaction fees' but also a 'ticket to new projects.' Not holding BNB means losing the qualification to participate in the primary market dividends. At this stage, BNB completed its transformation from a tool to an investment asset.
06 Self-owned public chain and ecosystem construction, BNB becomes on-chain fuel
In 2019, BNB migrated from an Ethereum ERC-20 token to its own Binance Chain; in 2020, Binance Smart Chain (BSC, later renamed BNB Chain) was officially launched.
At that time, it was the DeFi Summer, with Ethereum gas fees soaring. BSC attracted a large number of users due to its low transaction fees (less than $0.01 per transaction) and fast transaction processing capabilities.
Applications like PancakeSwap, Venus, and Alpaca have rapidly risen, with every operation requiring BNB as gas fees. Without BNB in wallets, it is nearly impossible to proceed; BNB has become the 'on-chain living expenses,' leading to a significant increase in demand.
07 Payment functions and real-world applications, BNB can be spent like money
In 2019, the Binance Card was launched, followed by Binance Pay, enabling BNB to be used for direct card payments within the global Visa network for transfers, payments, and settlements.
Users can directly buy coffee with BNB without first converting it to fiat. This experience has led more people to realize that BNB is no longer just a virtual asset but is evolving into a payment currency.
Payment scenarios have extended the holding period—users are no longer eager to sell their BNB but are more willing to hold it long-term. The increase in practical application scenarios further supports the value of BNB.
08 Financialization and asset attributes, BNB becomes an income-generating tool
Binance has added financial attributes to BNB: BNB Vault allows users to stake BNB with one click while earning interest and participating in Launchpool airdrops; Binance Loans allow users to borrow stablecoins against BNB collateral.
These functions made 'BNB no longer a dead asset,' but an active participant in the capital cycle. Some users even use BNB as collateral for leveraged arbitrage, further increasing the frequency of BNB's use.
This step upgraded BNB from a 'payment currency' to a 'financial asset'; it can be spent, saved, earned interest on, and borrowed against, making its functions more diverse.
09 Governance functions and cross-chain expansion, BNB becomes a certificate of power
BNB gradually entered the role of a 'governance token.' On the Beacon Chain, BNB can be used for node staking and voting; Greenfield decentralized storage also incentivizes with BNB.
Binance Bridge 2.0 allows BNB to cross into chains like ETH, Polygon, Arbitrum, Avalanche, achieving boundary expansion. Holders began to see BNB as a form of 'Web3 power certificate.'
A popular saying in the community is: 'ETH is the faith of developers, BNB is the faith of users.' At this point, BNB is no longer just a tool of Binance but a 'sovereign asset' of the entire ecosystem.
10 Multi-chain era and infrastructure, BNB becomes the cornerstone of Web3
In recent years, BNB has expanded into more new fields: opBNB (L2 solutions), Greenfield (storage network), BNB pool staking (value endorsement for new projects).
If new projects can integrate with the BNB pool, it means they have received Binance’s brand endorsement. At this point, BNB has become the 'default fuel for new public chains and new DApps,' completely shedding the label of 'exchange token.'
In 2025, the performance of BNB Chain further improved, achieving sub-second transaction latency and 1000 TPS block speed, which is a 300% increase from 2024.
11 Institutional adoption and reserve assets, publicly traded companies hoard BNB
In 2025, BNB reached a significant new milestone: large-scale adoption by institutions became the new driving force for BNB's value leap.
CEA Industries, along with investment firm 10X Capital, announced a $500 million initial financing plan supported by Binance founder Zhao Changpeng's family office YZi Labs, aiming to make CEA Industries the world's largest publicly traded BNB treasury company.
WindTree Therapeutics has allocated $200 million in securities financing specifically to build the BNB Treasury; Nano Labs plans to hold $1 billion worth of BNB within three years. Hua Xing Capital Holdings has also announced a plan to invest approximately $100 million in BNB assets.
These enterprises view BNB as a 'hedge asset' and a multi-attribute asset of 'value storage + income opportunity.' BNB officially entered the 'MicroStrategy era,' becoming a new type of financial infrastructure layer.
12 Future outlook and value prediction, BNB could reach $2,000
Multiple institutions and analysts have given positive predictions for BNB's future value. Nano Labs founder Kong Jianping believes that it is not difficult for BNB to break $1,000 in the short term and is optimistic about its challenge of the $2,000 mark in this bull market.
Hash Global has adjusted its valuation model based on currency equations, raising BNB's reasonable valuation to above $2,000, with a market cap expected to exceed $300 billion, potentially surpassing Ethereum.
Standard Chartered Bank predicted in May this year that BNB could reach $2,775 by the end of 2028. Behind these predictions is the market's recognition of BNB's unique position.
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The market capitalization of BNB has reached $119.3 billion, ranking 184th globally, surpassing traditional giants such as MicroStrategy (MSTR) and SoftBank International.
From an exchange tool to corporate treasury assets, and then to national strategic reserves (the Kingdom of Bhutan has included it in its official reserves), BNB has undergone a metamorphosis from a payment tool to a value storage.
It has become one of the three core assets in the crypto world, alongside Bitcoin and Ethereum. This eight-year evolution is not only a success for Binance but also a microcosm of the entire crypto industry's development.
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