I always had been very optimistic about Binance Coin but I never thought that it could reach market cap rank #3 like it just did. It´s simply incredible.
However, there are some good reasons explaining the current bull run. I don`t know any cryptocurrency that offers more usecases than $BNB.
Let`s have a closer look at $BNB`s tokenomics, usecases, and price.
$BNB Tokenomics
Binance Coin`s price at the time of writing is above $250. $BNB has a circulating supply of 150 Million coins and a maximum supply of 180 million coins. With a market capitalization of $36,517,844,132, Binance coin is currently located on market cap rank #3!
$BNB is designed with a token burn mechanism. These token burns are inducing scarcity and they drive up the value of the token. 20% of Binance`s profits are used to buy back $BNB and these bought back tokens are subsequently destroyed every three months. Ten rounds of $BNB token burns have already taken place, with about 16.7 million $BNB burned up till January 2021.
$BNB Usecases
Binance Coin already has lots of different usecases and Binance is coming up with new usescases from time to time to give their native coin an extra boost.
1. Reduced Trading Fees
When trading fees on Binance are paid using $BNB, users are entitled to a juicy 25% discount in trading fees. That`s a pretty clean and simple usecase that many Binance users are taking advantage of. In general, the trading fees are much lower than the trading fees on other exchanges licke Coinbase Pro.
2. Binance DEX
While you enjoy reduced trading fees from holding $BNB on the CEX, you really need $BNB to trade on the Binance DEX.
by the way, Trust Wallet`s inbuilt exchange is also Binance DEX.
3. Binance Account Tier
Users with account balances in BNB and 30 days accumulated trading volume above certain thresholds are given VIP tiers with additional fee discounts and perks.
4. Dust Conversion
Users of Binance can convert non-tradeable amounts of cryptocurrencies so-called token dust in their Binance account into $BNB.You can convert smaller balances with a valuation below 0.001 BTC to BNB once every six hours. Simply go to your fiat and spot wallet, click on the button "Convert to BNB" and say Goodbye to your token dust.
5. Launchpool, Launchpad, $BNB Vault
Another cool usecase of the Binance Coin is the Binance Launchpool which is issuing and launching new tokens. You can earn them by staking certain cryptocurrencies in the Binance Launchpool. You can always use your $BNB to farm these newly issued tokens on the Launchpool.
The Binance Launchpad gives you the chance to participate in token sales with your $BNB. The formats of these token sales may change frequently but one thing is for sure: You always need $BNB to participate in a token sale on the Binance Launchpad.
The $BNB Vault is a $BNB yield aggregator. Staking $BNB in the Vault means participating in Launchpool, Savings, Defi staking, and other projects and at the same time gaining rewards. When you deposit $BNB into the Vault, your rewards will be distributed the next day.
6. Binance Smart Chain Native Token
In my opinion, the most important use-case of $BNB is on the Binance Smart Chain.
Much like how Ethereum is necessary to pay for the fees on the Ethereum Blockchain, $BNB is needed to pay for the fees on the Binance Smart Chain.
$BNB Price Development
The Binance Coin was initially created on the Ethereum blockchain as an ERC20 token in July 2017 before migrating to its own Binance blockchain in February 2019. In the beginning, $BNB was worth less than ten cents. Binance Coin has seen incredible growth in interest throughout the years until it reached its new all-time high with more than $250 today.
Considering the quarterly token burns, all the different usecases that $BNB already has plus new usecases that are introduced frequently by Binance, I am still very optimistic. The market share that Binance Coin will take from Ethereum will be significant. The small fees on the Binance Chain compared to the extremely high fees on the Ethereum blockchain are probably the biggest reason for this development.
Buying And Storing $BNB
If you want to buy some $BNB, then the best place to it is Binance. If you are for some reason not registered on Binance yet, you may use my referral link with the code E3PGAJCE for signing up. When you use it, it will save you trading fees each time you perform a trade on Binance. Don`t forget about this possibility when you introduce a friend to cryptocurrency yourself as it will save both of you some money.
If you are looking for a wallet to store your $BNB, I recommend using Trust Wallet. Trust Wallet uses Binance DEX as their exchange provider and you can easily connect with the decentralized projects that are running on the Binance Smart Chain.
My Final Words
Another reason for me to hold $BNB on the Binance exchange is that I can use my $BNB anytime to invest in the next possible low market cap gem. on Binance, you can use your $BNB to trade it against most of the cryptocurrencies listed. Meanwhile, I let my $BNB farm the newly issued tokens on the Launchpool.
At the end of my post, I also like to remind you that my intention in this post is to raise your awareness of Binance Coin and my intention is not to replace your own research. However, my post really reflects my own opinion.
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