With a stable market capitalization of around USD 100 million in August 2025, Yield Guild Games YGG is the “economic and social” layer. YGG is a decentralized gaming guild that acts as a crucial bridge, helping thousands of players access expensive in-game NFT assets without having to pay a large upfront cost. YGG drives user acquisition and retention for games on BNB Chain by renting NFTs. The success of YGG shows that a thriving GameFi ecosystem requires not only good games. Furthermore, from the players’ perspectives, they focus more on and are more impressed by financial aspect features, including infrastructure and gaming rewards. BNB was originally issued as an ERC-20 token, running on the Ethereum network, with a total supply of 200 million coins.
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BNB is used for trading fee discounts on Binance, participating in token sales on Binance Launchpad and in various DeFi applications within the Binance Smart Chain. BNB stands for Binance Coin, a cryptocurrency used for trading and paying fees on the Binance platform. As of 2025, BNB has become one of the top 5 cryptocurrencies by market capitalization, boasting over 223 million holders and an active developer community. This article will delve into its technical architecture, market performance, and future potential. As mentioned, BNB has many use cases both within the BNB Chain ecosystem and elsewhere, so it is up to you to decide how to use your BNB.
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With all that we overviewed, hopefully, you now know what is BNB and how to use it. As one of the most popular and widespread crypto assets, BNB has more inherent value than appears at first glance. On top of concern mounts over potential crypto exchange wex exit scam that, you can participate in PancakeSwap lottery in hopes of gaining more CAKE.
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Meanwhile, CoinDesk Data’s latest Exchange Review report revealed that Binance saw $2.63 trillion in futures trading volume last month, a new monthly record. Along with Bybit and Crypto.com, it was one of the largest exchanges by spot trading volume. The BENJI token by Franklin Templeton is a multi-chain asset based on a tokenized money market.
Currently, all transaction fees paid using BNB on both the Spot and Margin markets are subject to a 25% discount, while those made in the futures market get a 10% discount. BNB was initially created to serve as a utility token within the Binance exchange. In the Binance ecosystem, another digital asset exists called the Binance Dollar or Binance USD (BUSD). Even though they are both issued by the Binance crypto exchange, they are fundamentally distinct and serve different functions. Understanding the different forms of BNB, its applications, and the BNB Chain ecosystem is crucial for anyone looking to participate in the Binance ecosystem.
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- To buy BNB safely, use reputable exchanges like Binance or Kraken, enable two-factor authentication and consider using a hardware wallet for storage.
- BNB, the native asset of the BNB Beacon Chain, is used to pay for fees, similar to how gas works in the Ethereum network.
- That same month, the exchange revealed that it would allow users to migrate their binance coin to the new blockchain, and that it would create BNB tokens as the Binance Coin tokens were eliminated.
- These issues have sparked discussions within the community and market, also driving continuous innovation for BNB.
- The combination of AI and Web3 Gaming promises to deliver more personalized and in-depth experiences, creating engaging interaction loops and retaining players for the long term.
Indeed, more than 180 digital assets have been issued on BSC, and millions of users have consumed BNB for utility purposes in connection with BSC. NFTevening is an award-nominated media outlet that covers NFTs and the cryptocurrency industry. Before making any high-risk investments in cryptocurrency or digital assets, investors should conduct thorough research. Please be aware that any transfers and transactions are done at your own risk, and any losses incurred are entirely your responsibility.
What is the binance coin used for?
Users were able to exchange their BNB ERC-20 tokens for the new BNB coin via a token swap. One can also use BNB to invest in certain ICOs listed through Binance’s Launchpad program. New cryptocurrencies are listed on the Binance exchange, which provides a seamless marketplace for trading in a variety of established and new virtual tokens. BNB tokens are burned quarterly, based on Binance’s trading volume, and an auto-burn system has been introduced to adjust for market conditions. According to the whitepaper, the exchange would use 20% of quarterly profits what is scrum methodology and scrum project management software development to buy back outstanding tokens and burn them.
The opBNB chain, an important Layer-2 solution, had an average of 12.2 million active addresses, while BNB Smart Chain (BSC) still maintained 44.9 active addresses at the end of the year. Finally, the most dynamic and creative ecosystem is found in the smaller market cap tier, under USD 100 million. The next major projects on BNB Chain are likely to emerge from here, ensuring sustainable growth and constant renewal of the environment. Considering the market capitalization of each project group on BNB Chain, the groups with a market cap above USD 100 million bring the most value. This group attracts liquidity, investors, gaming communities, and leads in user base. We will take a close look at these projects, which will demonstrate the diverse strength of BNB Chain.
- The distribution of BNB shows a notable concentration among a few major players.
- Transactions are grouped into blocks and linked through cryptographic hashes, forming a secure chain.
- This information is for educational purposes only and should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to, buy or sell any financial instruments.
- After installing, you will be prompted to either recover a previous wallet or create a new one.
Now that you have acquired your BNB tokens, you may be looking for a safe place to store them. Normally, we would recommend storing all your long-term digital asset investments in a hardware wallet such as Trezor or Ledger for increased safety. Binance exchange launched in July 2017, but before the launch, the exchange needed to raise necessary funds to run the business. The Binance team, led by its current CEO Changpeng ‘CZ’ Zhao, conducted an initial coin offering to sell BNB tokens to interested investors.
Over time, the total supply of BNB will decrease to 100 million units, a 50% decrease from the original amount. One is a real-time burning mechanism, which eliminates a fraction of the gas fee that exists in each individual block. BSC validators have the authority to determine exactly how much of this gas fee is eliminated.
BNB or Binance Coin, is a prominent cryptocurrency that was initially launched by the Binance exchange. Originally created as an ERC-20 token on the Ethereum blockchain, BNB has since migrated to Binance’s proprietary blockchain, known as Binance Chain. This transition enables enhanced performance and scalability tailored to the needs of the Binance ecosystem. BNB serves a multitude of functions within this ecosystem, including providing trading fee discounts, enabling participation in token sales and offering various applications in decentralized finance (DeFi). As one of the largest cryptocurrencies by market capitalization, BNB plays a crucial role in the broader landscape of digital want to beat the banks at their own game with cars currencies. Primarily, it functions as a utility token, allowing users to pay transaction fees on the Binance exchange and access dApps on the Binance Smart Chain.
BSC outperforms Ethereum in performance with a block time of approximately 3 seconds (versus 13 for Ethereum) and fees generally under one dollar. These advantages have attracted numerous projects like PancakeSwap, Venus Protocol, or Alpaca Finance, creating a complete DeFi ecosystem. The consensus mechanism used is Proof of Staked Authority (PoSA), combining elements of Proof of Stake and Proof of Authority. In this system, 21 active validators are selected based on their staked BNB and reputation. They take turns producing blocks in a predetermined order, with a block time of approximately 3 seconds. It was in 2021 that BNB experienced its explosion, rising from about $31 in January to over $650 in May, propelling BNB among the world’s most valuable cryptocurrencies.
Whatever method you choose, evaluate whether the time invested is proportional to the rewards obtained and remain vigilant against scams. In 2023, according to AvengerDAO, BSC experienced 414 security incidents, representing a 44% increase compared to 2022. These incidents include smart contract exploits, Ponzi schemes, and phishing attacks. “Sandwich” attacks were among the most common, framing a user’s transaction between two quick transactions by the attacker to generate profit.
Binance, whose significant user base also gives BNB Chain a huge advantage in terms of creating an on-ramp for new users. PoSA relies on a limited set of validators, elected by BNB stakers, who are responsible for producing and validating blocks on the BNB Chain, receiving BNB transaction fees as a reward. PoSA allows for instant finality, meaning that transactions are confirmed as soon as they are included in a block. BNB Chain is a community-first, open-source and permissionless blockchain, meaning that anyone can participate in the network, and all records are public and transparent.