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Main TakeawaysBNB is the utility token of the decentralized BNB Chain ecosystem. Initially used mostly for trading commission discounts and gas fees, today it offers far more to holders across the universe of Binance products and services.A user who bought 1 BNB on January 1, 2024, and held it on Binance until the end of March 2025, could have earned over 177% in combined returns from price appreciation and ecosystem rewards.Through Launchpool, airdrops, and consistent token growth, BNB has become a compelling asset for both traders and long-term holders – all the while remaining a utility token.BNB was born in 2017 as a utility token to support Binance users: a way to save on trading fees and cover gas costs on what would eventually become BNB Chain – a decentralized, community-driven ecosystem of layer-1 and layer-2 blockchain solutions.Over time, BNB’s role has expanded significantly, and today, it is much more than a tool for active traders. The token has become a gateway to new project launches, exclusive airdrops, and opportunities to grow crypto portfolios without actively participating in the market. With Binance offering an increasingly wide array of on-platform earning opportunities, BNB now functions as a gateway to the broader Web3 economy.From Trading Discounts to DeFi PowerhouseBNB’s fundamental utility comes from tangible use cases. One is Binance trading fee discounts for up to 25% off for Spot and Margin trading, 10% off for Futures, and variable rates for various levels of VIP users. Another is gas payments on BNB Chain: the token is used to pay transaction fees across the BNB Chain ecosystem. Finally, there is broad real-world usage: payments and shopping across a vast network of merchants who accept BNB, plus transparent and efficient charitable donations via Binance Charity.While these utilities continue to support strong organic demand, BNB's appeal now extends well beyond the initial scope.Let’s break this down with a real example.On January 1, 2024, BNB was priced at around $313. As of the end of the first quarter of 2025, it had climbed to $640, a 104% price increase. But the real edge came from holding BNB on Binance.If you kept that same 1 BNB in your Binance wallet and participated in available Launchpool, MegaDrop, and HODLer Airdrop programs, you could have earned around $226 in additional token rewards, bringing your total return to $553.Note: Here and throughout this article, we calculate rewards and APYs using the newly launched and airdropped token’s first-day closing prices. This is a more conservative metric than all-time-high-based rewards APYs that some analysts use.That’s a 177% ROI, or about 11.8% per month – a return few other crypto assets (let alone traditional ones) can match, especially without active speculation.How BNB Drives Value for HoldersThe first driver is price appreciation. BNB’s price more than doubled in 2024, outperforming many major altcoins. Several factors drove this growth, including increased BNB utility across both centralized and decentralized platforms and consistent staking demand, which helped BNB maintain stability even in choppy markets.Launchpool: Low-Risk, High-Reward Exposure to New ProjectsLaunchpool lets users stake BNB and other assets to farm new project tokens before they’re listed. Since its 2020 launch, Launchpool has become a key feature for many Binance users, offering a direct path to earning new assets. Launchpool's edge lies in its low-risk structure: users never buy new tokens outright. Instead, they farm them while still holding their original BNB.In 2024 alone, we held 21 Launchpool events, with total token rewards exceeding $1.75 billion.Some standout pools offered impressive returns per one BNB staked: Saga (SAGA): $13.07; Ethena (ENA): $10.37; PIXEL: $9.47. For Launchpools held between the start of 2024 and the end of Q1 2025, APYs averaged 84%.Airdrops: MegaDrop and HODLer RewardsIn 2024, we doubled down on high-quality airdrops that reward long-term commitment. With MegaDrop, users complete quests or stake BNB to earn allocations from carefully vetted projects. HODLer Airdrops reward users who consistently hold BNB in their wallets based on historical BNB snapshots.These programs delivered a combined 19.7% yield for users who participated in all drops – that’s on top of Launchpool and price appreciation.To further enhance the user experience, we have introduced a revamped Binance Launchpool interface, for now available on the Binance app only, and a newly designed BNB page. The redesigned Launchpool UX simplifies the process of participating in token airdrops by allowing users to subscribe to BNB Simple Earn directly from the Launchpool page, improving visibility into airdrop allocations and locked BNB positions, and featuring push notifications for new airdrop launches to ensure users never miss an opportunity.Complementing the updated Launchpool experience, the newly designed BNB page consolidates all essential information about BNB’s utility in one place. This page highlights key benefits such as trading fee discounts and VIP perks, and provides real-time information on ongoing and upcoming airdrops across Launchpool, Megadrop, and HODLer Airdrops.Compounding Without ComplexityThe magic of BNB on Binance lies in its rewards stack. You start with price appreciation: between the start of 2024 and the end of Q1 2025, BNB went from $313 to $640. Add earnings from participating in Launchpool events, and then layer in seven additional airdrops, and you’re looking at returns rivaling those of sophisticated investment strategies – achieved by doing nothing more than holding a single token on a platform you already use.This compounding effect is one reason some smart money investors are now targeting Binance ecosystem activities to grow their crypto portfolios even without getting actively involved in the crypto market. And unlike staking programs that require complicated wallet setups or time-locked liquidity, Binance’s BNB-based rewards are accessible, transparent, and flexible.Finally, for more hands-on users, there are further opportunities to engage in active compounding strategies. For example, instead of holding newly earned Launchpool or airdropped tokens, you can convert these rewards back into BNB, effectively increasing their principal for future rewards. This creates a compounding loop: the more BNB you hold, the more tokens you earn, which can then be converted into even more BNB. Final ThoughtsIt’s important to remember: BNB hasn’t stopped being a utility token. It’s still the backbone of trading fee discounts on Binance and gas payments on BNB Chain. It’s still used in real-world transactions and donations. But today, it’s also a yield engine, an airdrop magnet, a gateway to early-stage projects, and a store of value.BNB continues to be relevant to the entire Binance and BNB Chain ecosystems’ user base, from power traders optimizing every fee to long-term HODLers building wealth over time. In the crypto landscape, BNB stands out as a token that works – quietly, reliably, and profitably. With its combination of ever-expanding utility, consistent rewards, and strong performance, BNB is uniquely positioned to deliver real value to its users. In an industry that rewards early adopters and patient believers, that’s exactly the kind of asset worth paying attention to.Further ReadingBNB: Understanding its Utility on BinanceMaster the Airdrop Game: More Than Just Free MoneyBinance Launchpool: A Gateway to Exclusive Projects and Token Rewards