These days, a completely new crypto project can appear and become popular within a year. Shiba Inu, Solana, and Avalanche blew up a few months after launch and now belong to the top 20 of all digital coins by market capitalization. Other coins do not enjoy the same level of acceptance and stay in the shadows. But as crypto exchanges compete in the number of supported coins, you can find trading pairs like NAS to MCO on many platforms.
Then there are coins that were created a long time ago but only recently appeared on everyone’s radars. One of them is the Binance Coin. What is BNB and why does it have potential? Read on to find out.
Basics of Binance Coin (BNB)
Binance Coin or BNB is a coin launched by the Binance exchange. It now powers the whole ecosystem, including the newly rebranded BNB Chain.
Binance is the biggest exchange platform worldwide. Around 1.4 million transactions per second are performed on Binance, with the total daily volume of $2 billion. The man behind Binance is Changpeng Zhao, who has been the CEO of the company since 2017.
In 2017, the BNB coin was launched on the Ethereum blockchain. Now it is based on the BNB chain. BNB reached tts all-time-high at the beginning of May 2021 ($690.93). As of mid-April, 2022 its value is estimated at around $416 per coin. The market capitalization of BNB is approximately $69 billion, which makes it the fourth most popular cryptocurrency on the market.
BNB Burning
Like many other cryptocurrencies, BNB creators use coin burning to remove some of them from circulation. It means that a certain amount of coins are sent to the wallet address or smart contract that cannot be accessed. Consequently, the usage of burned coins is impossible.
The burning process aims to potentially increase the value of coins in circulation. In other words, it creates a deflationary effect. The goal for BNB is to keep the total supply under 100 million tokens.
Binance has performed such burnings every quarter, but in December 2021 the company introduced a new auto-burn mechanism. The mechanism burned approximately 1.6 million BNB.
Uses of Binance Coin
Originally BNB was created as a token for discounted trading fees. But now its utility and popularity are much more extensive. Here are a few ways to use the Binance coin:
- Trading
Binance сoin is not an internal token anymore. It is now a separate project that can be used as a trading asset. Besides, pairs like BNB to AVAX are listed on the most popular crypto exchange platforms.
- Payment
BNB can also be used as a payment method not only in the crypto world. You can pay with BNB for travel accommodation (TravelbyBit, Trip.io, and others), entertainment (lotteries, virtual gifts), and many other online services.
- Investment
Binance’s Launchpad program also allows you to invest in some listed ICOs using BNB coins.
- Paying transaction fees
Currently, BNB is used for paying transaction fees on multiple Binance platforms. Among them are the Binance exchange, Binance DEX, BNB Beacon Chain, and BNB Smart Chain.
- Loans
There is an opportunity to borrow BNB and use it for any purpose while still safely holding it.
- Staking
You can use your BNB coins to take part in staking and receive rewards for securing the operation of the Binance network.
Today BNB coins have a real-life utility, and the possibilities for owners are constantly expanding.
Expert Predictions About BNB Price in Future
What exactly is waiting for the BNB coin in the future? Different experts agree on the price increase in the following years. According to Coinpedia, by the end of 2022, BNB will cost $1,092 per coin. The lowest possible price is near $667, the highest is around $1,400 per coin.
Another reputable prediction source, DigitalCoinPrice, forecasts a BNB price range between $510.90 and $597.58 in 2022. Facebook experts say that the BNB price will grow up to $2,290 in 2023. At the same time, according to PayPal’s predictions, we should expect a value of near $832 per coin.
Although the forecasts are different, many experts agree that selecting BNB as an investment asset is a good idea. Even the most pessimistic scenarios for BNB’s price are promising.
Should You Invest in BNB in 2022?
BNB is a cryptocurrency that is related to one of the most popular networks in the industry. It still has a relatively low price but is already quite popular among traders and positively evaluated by experts. Given that any investment has a certain degree of risk, both trading and investing in BNB seem like a great option in the crypto world.