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What Makes Binance Coin Interesting in the Crypto Space?

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Binance coin is the native cryptocurrency of the entire Binance ecosystem. The Binance ecosystem is one of the largest in the crypto space because it comprises the Binance Exchange and the Binance Smart Chain Network. The Binance Exchange is the largest exchange platform in terms of trading volumes, while the Binance Smart Chain is a smart contracts platform that has supported major DeFi projects such as PancakeSwap.

Given these use cases, Binance coin is undoubtedly one of the popular and most utilized cryptocurrencies in the crypto space. The vast use cases also make it one of the most interesting cryptocurrencies to watch in the crypto charts.

BNB and the Binance Exchange

As mentioned, Binance is the largest cryptocurrency exchange platform. The Binance exchange can process around 2 billion transactions daily, demonstrating the huge number of users on the exchange.

There are many reasons why crypto traders prefer the Binance exchange. The first reason is that the exchange supports many coins, some of which are not available on other exchanges. The second and most important reason is that Binance charges some of the lowest trading fees. Binance’s transaction fees come at a minimum of only 0.1% per trade, one of the lowest in the crypto space.

What makes the Binance coin interesting regarding the exchange’s operations is that if you pay your transaction fee using BNB, the fee is reduced by around 50%. This means that if you have done a $100 transaction, and you pay the transaction fees in BNB, you will not be charged the normal 10 cents, but you will only be charged 5 cents.

BNB and the Binance Smart Chain

The other use case of BNB is in the Binance Smart Chain network. This network has rapidly grown in adoption because it benefits developers looking for scalability and low transaction fees.

When the Binance Smart Chain was launched, BNB was moved from the Ethereum blockchain, and it now runs on this blockchain. BNB has a major use case on the BSC network because it is used to pay transaction fees on the network.

Decentralized finance has become one of the most popular developments in the crypto and blockchain spaces. With BSC being one of the smart contract platforms that can support the growth of DeFi, BNB is poised to benefit, as its demand will increase as developers will have to purchase the coin for them to use it on the BSC network.

BNB’s Performance

The other factor that makes BNB an interesting cryptocurrency to invest in is its performance over the years. The Binance coin was launched in 2017. At the time, it was an ERC-20 token based on the Ethereum blockchain.

Towards the end of 2017, BNB was trading at a mere $0.0398. These were the lowest levels that the coin has ever achieved. However, the coin rapidly grew in popularity, mostly because of the Binance exchange. Currently, BNB is the fifth-largest cryptocurrency in terms of market capitalization. Its market cap lies at over $58 billion. Currently, BNB is trading at $378, which is an astronomical growth compared to its values in 2017.

BNB is supported by major ecosystems such as the Binance Exchange, making it one of the trustworthy coins in the crypto space. Most coins in the crypto sector lack real use cases, making them highly risky ventures, as the probability of a rug pull is high. However, when a solid platform or technology backs a coin, it increases its chances of staying in the crypto market for long. Hence, BNB is also interesting in this perspective.

Is BNB a Worthy Investment?

Considering all these use cases for BNB, one can deduce that it is a cryptocurrency that is worth considering. However, the crypto market is usually very volatile, and you never know what will happen in the future. While the large Binance ecosystem shows promise of the coin increasing in value, there is still the possibility that prices could suffer a major blow.

For instance, the Binance exchange is under heavy regulatory scrutiny from various countries and has already been banned in the UK, Malaysia, Thailand, Singapore and other countries. Whilst the Binance CEO, Changpeng Zhao, has made changes to ensure Binance achieves regulatory compliance, it remains to be seen whether the exchange will withstand these regulatory wrangles, as they are only poised to increase in the future.

On the other hand, BNB is yet to reach the level of adoption achieved by Bitcoin, Ethereum and Litecoin in being used as a means of exchange. Despite ranking as the fifth largest crypto, BNB is not a widely accepted cryptocurrency for payments.

To learn more visit our guide to Investing in Binance or learn how to Buy Binance Coin.

Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.

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