Binance Coin (BNB) is the native token of Binance, a popular online cryptocurrency exchange considered the largest based on daily trading volume. In addition to the exchange platform, Binance launched a range of functionalities that are performing well in the DeFi sphere, including the Binance Chain, Binance Academy, Trust Wallet, Binance Smart Chain, and more.
The Binance coin’s popularity followed the increased popularity of this exchange that successfully operates in many countries.
But will it remain the leader in the future? How will that affect BNB and its price? Should you trade your Binance coin to Bitcoin or any other crypto or hodl it? Let’s find out.
BNB Chain Explained
Binance Chain is Binance’s first blockchain project which has been operating for a while. However, there were some limitations to its programmability, so the team behind Binance led by Binance founder Changpeng Zhao decided to make an upgrade.
This was overcome by the development of the Binance Smart Chain. It is a blockchain network designed for using smart contracts, modeled after Ethereum’s blockchain, but with a few unique twists.
In addition to offering great transaction capacity, BSC also runs concurrently with Binance’s native Binance Chain. BSC has also implemented a virtual machine for executing Ethereum-based applications.
Platform users were to be able to handle their digital assets cross-chain efficiently and with low latency, while developers could create decentralized applications.
What Is the BNB Token?
In its initial form, the Binance coin was built on Ethereum according to the ERC20 standard, but it has now become Binance’s native coin. In 2017, 200 million tokens were offered during an ICO.
Originally designed to facilitate discounted trading fees, the Binance Coin now offers various uses. Some of them are transaction fees (on the Binance Chain), online services, entertainment, and travel bookings.
The total supply of Binance tokens is 160 million. A fifth of Binance’s profits is used every quarter to buy back and permanently destroy its treasury coins. This deflationary mechanism is not uncommon in the crypto sphere and is utilized to sustain the asset’s value.
A total of 20 BNB coin burns have been completed by Binance by July 2022. More than 38 million BNB tokens have been burned, reducing its original 200M supply by almost 20%
Today and Tomorrow: BNB’s Price
According to PricePrediction, the average price for BNB will reach $421 by 2023, which is a significant increase, given the price has been ranging between $200 and $350 throughout 2022. Moreover, the source forecasts that the price will reach $1,825 by 2027 and as much as $5,180 by 2030. The maximum price BNB can go up to in 2030 could be $6,404.
DigitalCoinPrice suggests that BNB’s average price could increase to $679 in 2023. Moreover, it could go up to $1,445 by 2027 and $3,862 by 2030. This is another positive prediction, although it’s more optimistic short term.
Is BNB a Decent Investment Option?
Based on the success of the Binance platform, it’s safe to say that BNB Coin has a bright future. However, there are many reasons to research this coin further, the main one being the volatility of cryptocurrencies in general.
Just like Bitcoin or Ethereum, BNB is highly volatile, and some unpredictable price changes are bound to happen in the future. Of course, if you seize an opportunity and buy and sell at the right time, this can bring you profit. Alternatively, you could stick to some stablecoins, such as USDT, which you can buy for many popular and less popular crypto, like VIDT Datalink, on this page — https://godex.io/exchange/vidt-to-usdt/.
Therefore, make sure to read the latest news about BNB and thoroughly explore how it works to stay one step ahead and, ultimately, make a profit.