BNB (Binance Coin) is the native token of the cryptocurrency exchange Binance, and since its inception in 2017, it has evolved from a single-functional platform token to the core asset supporting the entire blockchain ecosystem. Its development history and market trends can be summarized as follows:
One, the origin and development history of BNB
1. Birth and early positioning (2017)
- BNB was issued through an ICO on July 14, 2017, with an initial price of 0.11 USD and initially existed as an ERC-20 token on Ethereum.
- The original design was intended as a utility token for the Binance exchange, used for paying transaction fees (providing discounts), participating in new project subscriptions (such as Launchpad), and other platform functions.
2. Key transformation: From platform coin to public chain ecosystem token**
- April 2019: BNB migrated to Binance's self-developed public chain Binance Chain, breaking away from the ERC-20 standard to become a native token, taking the first step towards decentralization.
- September 2020: Binance launched the **Binance Smart Chain (BSC)** supporting smart contracts, and BNB became the 'fuel token' for BSC, used for paying Gas fees, staking, and DeFi applications, completely breaking through the limitations of 'platform coin'.
- After 2023: BNB Chain upgraded to a multi-chain architecture (BSC, opBNB layer 2 expansion, Greenfield storage chain), forming the 'One BNB' ecosystem, further expanding application scenarios.
3. Deflation mechanism: Destruction plan and scarcity
- Binance repurchases and burns BNB quarterly based on profits, aiming to reduce the total supply from 200 million to 100 million. As of 2024, the total supply has been reduced to approximately 146 million (annual deflation rate of about 4.77%).
- The source of destruction has expanded from early reliance on exchange profits to include on-chain transaction fees and 'anti-black hole plan' compensations, accelerating the deflation process.
Table: Key development milestones of BNB
| Time | Event | Impact
| July 2017 | BNB ICO (0.11 USD) | Born as a platform coin, providing transaction fee discounts |
| April 2019 | Migration to Binance Chain | Became a native chain token, enhancing independence |
| September 2020 | Launch of Binance Smart Chain (BSC) | Supports DeFi ecosystem, expands application scenarios |
| From 2023 to now | Upgraded to a multi-chain architecture (opBNB, etc.) | Enhancing performance, reducing Gas fees, expanding the ecosystem |
| Ongoing | Quarterly destruction mechanism | Total supply reduced by nearly 30%, enhancing scarcity |
Two, historical market trends and key driving factors
1. Price milestones
- 2017-2021: Starting from a low point of 0.5 RMB (approximately 0.07 USD), it first broke through 340 USD in March 2021, with a market value exceeding 50 billion USD.
- 2024: Reached a historical high of 755.56 USD, with an annual increase of 175.73%, significantly outperforming Bitcoin (128%) and Ethereum.
- May 2025: Prices hovering around 650 USD, close to historical highs.
2. Market performance resilience
- Outstanding resistance to declines: During the 2021-2022 bear market, BNB's maximum drawdown was -73.29%, lower than Bitcoin (-77.32%) and Ethereum (-81.68%), and its price recovery period was shorter (237 days vs Bitcoin's 517 days).
- Volatility in 2024: Impacted by the global liquidity crisis, BNB withdrew 18.4%, still better than Ethereum.
3. Core driving factors of the market
- Ecosystem growth:
- DEX trading volume on BSC reached 2.474 billion USD in March 2024, surpassing Ethereum and Solana.
- The meme coin craze (such as Mubarak's one-day increase of 71%) and the surge in on-chain applications drive Gas demand and BNB consumption.
- Holding rewards mechanism:
- Launchpool new coin mining: Users staking BNB can receive high-yield airdrops (such as the average yield of 284% for the 28th project in 2024), forming a 'holding-to-earn - reduce selling pressure - price increase' flywheel.
- Regulatory risks easing:
- Signs of settlement in the Binance vs. U.S. SEC lawsuit eliminate uncertainty and boost market confidence.
Table: Historical performance of BNB price compared to the market
| Cycle | BNB performance | Comparative asset performance (for reference) |
| Annual increase in 2024 | +175.73% | BTC +128%, ETH <100% |
| Maximum drawdown in bear market | -73.29% (2021-2022) | BTC -77.32%, ETH -81.68% |
| Withdrawal in August 2024 | -18.40% (during liquidity crisis) | BTC -15.70%, ETH with larger drawdown |
| Recovery period | 237 days (to reclaim previous high) | BTC needs 517 days |
Three, future market outlook and potential catalysts
1. Technical upgrades and ecosystem expansion
- opBNB expansion: Plans to reduce Gas fees by ten times, increase transaction speed, and attract more high-frequency applications (such as GameFi and AI projects).
- Airdrop alliance plan: Issuing retrospective airdrops to BSC and opBNB users to incentivize on-chain activity.
2. Long-term value support
- Continuing deflation: If the current destruction rate continues, the total supply is expected to drop to 100 million in 5-8 years, with scarcity continuing to enhance.
- Institutional potential: After the approval of Bitcoin/Ethereum spot ETFs, BNB, as a 'super scarce asset' (the only deflationary token among the top 10 by market cap), may become the next compliant target.
3. Price prediction
- Short term: If it breaks through the resistance level of 750 USD, it may target the range of 800-900 USD.
- Medium to long term: Analysts predict a target price range of 827-1130 USD for 2025 based on ecosystem growth and deflation models.
Summary
BNB has completed the transformation from 'exchange function token' to 'cornerstone of public chain ecology', with its market trends closely linked to ecosystem expansion (BSC on-chain activity), holding rewards (Launchpool airdrops), and deflation mechanisms. After the reduction of regulatory risks, accompanied by technical upgrades (such as opBNB) and accelerated destruction, BNB may continue to outperform the market, becoming a core asset in the cryptocurrency market with both growth potential and defensive characteristics.
Note: In the short term, attention should be paid to the heat of Binance Launchpool projects and changes in trading volume on the BSC chain, as these are the core sources of BNB demand fluctuations.
