$BNB
BNB, formerly known as Binance Coin, is the native cryptocurrency of the BNB Chain ecosystem, which includes the BNB Beacon Chain and BNB Smart Chain. Launched in 2017 through an Initial Coin Offering (ICO), BNB was initially issued as an ERC-20 token on the Ethereum network before migrating to Binance's own blockchains.
BNB serves multiple purposes within the Binance ecosystem and beyond. Primarily, it offers users reduced trading fees on the Binance Exchange and Binance DEX. Additionally, BNB is used to pay for transaction fees on both the BNB Beacon Chain and BNB Smart Chain. Beyond transaction fees, BNB can be used for payments, such as booking travel accommodations on platforms like Travala.com, and serves as a community utility token within the BNB Chain ecosystem, supporting various applications including games and decentralized applications (DApps).
A unique aspect of BNB is its quarterly "burning" mechanism, where Binance repurchases and permanently destroys a portion of the BNB supply. This process aims to reduce the total supply over time, potentially increasing the value of the remaining tokens. As of May 2024, Binance completed its 27th quarterly BNB burn, removing approximately 1.94 million BNB, equivalent to $670.78 million, from circulation.
BNB has established itself as a significant cryptocurrency, ranking among the top digital assets by market capitalization. Its integration within the expansive Binance ecosystem and its various use cases contribute to its prominence in the crypto market.