With the acceptance of $ETH ETFs, the market began to speculate which would be next, as the SEC's opening to ETFs other than $BTC sets a precedent for others to aspire to become ETFs.
SOLANA was one of the names that came up, but my question is, why not $BNB ?
BNB (Binance Coin) is a cryptocurrency created by Binance, one of the world's largest cryptocurrency exchanges. Here are some key points about BNB:
Origin and Purpose: BNB was launched as an ERC-20 token on the Ethereum blockchain during Binance's ICO (Initial Coin Offering) in July 2017. It was created to be used as a utility token on the Binance platform, primarily to pay for trading fees, with users receiving discounts for using BNB.
Binance Chain and Binance Smart Chain: In April 2019, Binance launched its blockchain, Binance Chain, and migrated BNB from the Ethereum blockchain to its own chain. Later, Binance also introduced Binance Smart Chain (BSC), a parallel blockchain that supports smart contracts and is compatible with Ethereum's ecosystem. BNB is the native coin on both Binance Chain and Binance Smart Chain.
Use Cases: BNB has several use cases within the Binance ecosystem:
Trading Fee Discounts: Users can pay for trading fees on Binance exchange at a discounted rate using BNB.
Transaction Fees on Binance Chain and BSC: BNB is used to pay for transaction fees on both Binance Chain and Binance Smart Chain.
Token Sales: BNB can be used to participate in token sales on Binance Launchpad.
Payments: BNB can be used for payments in various online and offline services that accept it as a payment method.
Staking and DeFi: BNB can be staked in various DeFi (Decentralized Finance) applications on Binance Smart Chain.
Token Burn: Binance regularly conducts token burns, where a portion of BNB supply is permanently removed from circulation. This process is intended to reduce the total supply of BNB and potentially increase its value over time. The burns are funded by a portion of Binance's profits and are done quarterly.
Market Position: BNB is one of the top cryptocurrencies by market capitalization and plays a significant role in the broader cryptocurrency ecosystem due to its utility and the extensive use of the Binance exchange.
Overall, BNB is more than just a digital asset; it's integral to the functionality and growth of the Binance ecosystem.
Besides, BNB has a bigger Market Cap than Solana or Ripple (XRP), another name that was spoken to become the next ETF.
What is your opinion?