$BNB

Binance Coin (BNB) is the native cryptocurrency of the Binance ecosystem, serving multiple functions within its blockchain networks and the broader Binance platform.

Origins and Development

Launched in 2017, BNB was initially an ERC-20 token on the Ethereum blockchain. It was created during Binance's Initial Coin Offering (ICO) to fund the development of the Binance exchange and provide users with benefits like discounted trading fees. In 2019, BNB transitioned to Binance's own blockchain, Binance Chain, and later became integral to the Binance Smart Chain (BSC), now known as BNB Chain.

Utility and Use Cases

BNB serves as a utility token within the Binance ecosystem, offering various benefits:

Trading Fee Discounts: Users holding BNB can pay trading fees on the Binance exchange at discounted rates.

Transaction Fees: BNB is used to pay for transaction fees on the BNB Chain, facilitating operations within Binance's decentralized applications (dApps).

Token Sales Participation: Holders can participate in token sales on Binance Launchpad, accessing new projects and tokens.

Payment Method: Beyond the Binance platform, BNB is accepted by various merchants and service providers as a form of payment.

Burn Mechanism

To manage BNB's supply, Binance implements a quarterly "burn" mechanism, permanently removing a portion of BNB from circulation based on the exchange's trading volume. This deflationary practice aims to increase the token's scarcity and potentially its value over time.

BNB Chain Ecosystem

BNB Beacon Chain:

Handles governance functions such as voting and staking.

BNB Smart Chain (BSC): Supports smart contracts and is compatible with the Ethereum Virtual Machine (EVM), enabling developers to build decentralized applications (dApps) with ease.

Market Performance

As of March 20, 2025, BNB is trading at approximately $624.51, with a market capitalization of around $87.99 billion. It ranks among the top cryptocurrencies by market cap.