Key Points Discussed in this Article:
Use cases of BNB
What is Binance Smart Chain
BNB Ecosystem and recent upgrades done by them
Binance Assets & Inflows/Outflows
BNB Quarterly Returns & Closing price Quarterly
BNB Quarterly Burns
Introduction to BNB
Launched in 2017, Binance is the biggest cryptocurrency exchange, and its coin 'BNB' is used as a native token within the Binance exchange. BNB was offered in an ICO at a price of $0.15 per token and since then BNB has given investors over 1625X ( +162,437.1% ) returns. BNB was originally launched on ERC-20 with a total supply of 200 million coins. 100 million $BNB was offered in the ICO.
Even though the original $BNB tokens were initially built on the Ethereum network, they were eventually exchanged for BEP-2 BNB tokens at a 1:1 ratio. BEP-2 BNB serves as the native cryptocurrency of the Binance Chain, with its mainnet release being officially declared on April 18th, 2019.
So, is it possible for $BNB to hit $1k in the next bull cycle? To determine that, we need to discuss and understand the BNB Chain, its use case, and also consider where Binance stands, as it is a significant indicator of future prices.
Use cases of BNB
Even though BNB is used as the native token of Binance, that's not it's only use case. Let's discuss some of the various use cases of BNB currently:
You can use BNB to buy goods and services through online transactions and in-store purchases by using Binance Card and Binance Pay.
Reduce your trading fees by paying in BNB with various VIP tiers.
Native token of the Binance Smart Chain, use it as a transaction/gas fees and also for adding liquidity in various different pairs.
Take part in Binance Earn on Launchpad and Launch pools by committing/holding your BNB.
Use BNB to provide liquidity on Binance Liquid Swap.
BNB Smart Chain Ecosystem
Binance Smart Chain (BSC) is a blockchain network built for running smart contract-based applications.
BNB Chain ecosystem is also developing at a constant rate, with new projects launching every single day across various different categories, all working to help build this ecosystem and reach greater heights
Total Value locked of Binance Smart Chain:
The current market conditions play a significant factor in the TVL (Total Value Locked) of the chains, and as we are currently in a bear market, both TVL and price are expected to go down and BSC is no different.
Binance Smart Chain Updates
BSC is undergoing upgrades at a faster pace, which can help solve various problems and attract a significant amount of TVL back to their chain. Some of the latest and recent upgrades/updates are listed below:
1/ OpBNB ( Optimism and BNB ):
#OpBNB is an Optimized Layer-2 Solution That Delivers Lower Fees And Higher Throughput To Unlock The Full Potential Of The BNB Chain. An EVM blockchain built on Optimism, which aims to solve the scalability issue of BSC.
It is built using OP Stack. The gas fees of OpBNB should super low around $0.005 per transaction and also stable + it should be super-fast too with having around 4k+ TPS.
2/ Liquid Staking:
Now you can supply, collateralize and borrow Liquid Staking Tokens (LSTs) on the Binance Smart chain.
3/ BEP-126 Upgrade:
BNB Chain also implemented it's latest BEP-126 upgrade, which introduces Fast Finality for Unparalleled Security.
There are many more updates given by daily on BNBChain, which you can go and check @BNBCHAIN for that.
Price Discussions
To understand the future price of BNB, we had to look into the BNBchain ecosystem, the recent developments and also let's look into the Binance stats:
Binance Assets:
Despite the market conditions and FUD (Fear, Uncertainty, and Doubt), Binance is maintaining its assets at a constant rate, demonstrating their strong vision and commitment to building.
Binance Inflows/Outflows:
Binance's inflows have been +$2.845B in the last month, while most other exchanges are struggling to maintain positive inflows and are facing outflows. Binance, on the other hand, is holding strong.
BNB Quarterly Returns:
BNB Closing Price ( Quarterly ):
BNB was always in an uptrend on a longer time frame, even though we can see a slight setback from $512 to $246. This doesn't determine that the price can't go past above the ATH.
BNB Quarterly Burns:
Binance has also completed its 24th BNB burn, and in the picture above, you can see the previous burns along with the percentage of the BNB supply that has been burned
Presently, there are two primary mechanisms for burning BNB. The first involves a real-time burning of a portion of the gas fees utilized on the BNB Chain, which was introduced in BEP95. Since the Bruno upgrade of BNB Chain on November 30, 2021, approximately 860 BNB are burned daily through this method. The second mechanism is the quarterly BNB burn conducted by Binance, known as the Accelerated BNB burn.
Conclusion
There's a significant chance of BNB hitting $1k in the upcoming bull run, as Binance is the largest cryptocurrency exchange out there. If BTC pumps and surpasses its ATH, then BNB is also set to reach another ATH. Additionally, Binance Smart Chain is developing at a rapid pace, ensuring future scalability and safety for its users.
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