Binance Coin (BNB) is the native cryptocurrency of the Binance ecosystem, serving multiple functions within the platform and beyond. Initially launched in July 2017 as an ERC-20 token on the Ethereum blockchain, BNB transitioned to Binance's own blockchain, the BNB Chain, in 2019.
**Key Uses of BNB:**
- **Transaction Fees:** BNB can be used to pay for transactions on Binance.com, Binance DEX, and Binance Chain.
- **Payments:** BNB is accepted by various merchants for payments, including platforms like Monetha and HTC.
- **Travel Accommodations:** Users can book travel accommodations using BNB on sites such as TravelbyBit, Trip.io, and Travala.com.
- **Entertainment:** BNB can be used for various entertainment purposes, such as buying virtual gifts and lottery tickets.
- **Financial Services:** BNB can be used to invest in stocks, exchange-traded funds (ETFs), and other assets on various platforms.
**BNB Burning Mechanism:**
To manage the supply of BNB, Binance conducts quarterly "burns," where a portion of BNB tokens is permanently destroyed. This process aims to reduce the total supply, potentially increasing the value of the remaining tokens. As of April 2024, Binance completed its 27th quarterly BNB burn, destroying approximately 1.94 million BNB, equivalent to $670.78 million.
**BNB Chain and Ecosystem:**
The BNB Chain comprises the BNB Beacon Chain and BNB Smart Chain. The BNB Beacon Chain focuses on governance, allowing BNB holders to participate in staking and voting, while the BNB Smart Chain serves as a consensus layer, compatible with the Ethereum Virtual Machine (EVM), facilitating multi-chain interoperability.
**Current Market Performance:**
BNB's versatility and integration within the Binance ecosystem contribute to its prominence in the cryptocurrency market.