What is Binance Coin (BNB) — and is it worth your investment?
Binance Coin (BNB), also known as BNB Coin, has emerged as a pivotal player in the cryptocurrency ecosystem, powering the world’s largest cryptocurrency exchange, Binance. Its versatile functionality and growing adoption have made it one of the top cryptocurrencies by market capitalization.
Are you curious about BNB’s origin, utility and its importance to BNB Chain? This comprehensive guide will navigate you through the essentials of what BNB crypto is, as well as its tokenomics, regulatory landscape and how to buy, store and trade it.
We’ll dive deep into the evolution of BNB, its expanding use cases beyond the Binance exchange and its critical role in BNB Chain. Additionally, we’ll discuss what BNB crypto is in terms of its tokenomics, the coin burning mechanism and the regulatory challenges faced by Binance. By the end of this guide, you’ll have a thorough understanding of BNB’s potential as an investment and its significance in the ever-growing world of cryptocurrencies.
Key Takeaways:
BNB, the native cryptocurrency of the Binance exchange, offers various benefits to users and runs on BNB Chain.
BNB features a regular auto-burn mechanism that gradually reduces supply toward a target of 100 million BNB, supporting long-term value stability.
It has grown in market position over recent years and sits just behind Bitcoin(BTC), Ether (ETH) and Tether (USDT).
What is BNB crypto: An overview
BNB, formerly known as Binance Coin, is the native cryptocurrency of the Binance exchange, specifically designed to facilitate trading and offer various benefits to its users. The largest cryptocurrency exchange by trading volume, Binance has integrated BNB as a key component of its ecosystem. BNB Chain is a smart contract–capable, Ethereum virtual machine (EVM)–compatible blockchain. BNB (an acronym for “build and build”) serves various functions, such as creating, sending, receiving, burning and minting new tokens on Binance Chain. Users can also trade and invest in Binance coins, further expanding BNB’s utility within the Binance ecosystem.
Launched in 2017 through an initial coin offering (ICO) at $0.10 per token, BNB has experienced remarkable growth. As of Oct 9, 2025, BNB is the fourth-largest cryptocurrency in terms of market capitalization. BNB's success arises from its multiple uses and its connection to the Binance exchange, a notable entity in the crypto market.
BNB's launch and evolution
BNB was introduced through an ICO in 2017, raising $15 million by selling 100 million BNB coins at $0.15 per token. The funds generated during the ICO were allocated for various purposes, including 50% for branding and marketing initiatives and 33% for developing and enhancing the Binance platform and its related ecosystem. Initially developed on the Ethereum (ETH) blockchain as an ERC-20 token, BNB later migrated to its own BNB Chain in order to foster its ecosystem and enhance BNB’s accessibility.
BNB Chain is a high-performance blockchain network designed for smart contract-based applications, such as a decentralized exchange (DEX) and other decentralized finance (DeFi) products. This move has given Binance greater control over the development and scalability of BNB Chain. As a smart contract chain, BNB Chain has a thriving ecosystem of applications well beyond just DeFi platforms. In fact, the chain has more decentralized apps (DApps) than any other network in the industry, including Ethereum.
As BNB progresses, it’s cementing its place as a prominent cryptocurrency, fueling the Binance ecosystem and providing diverse utility to its users.
BNB's market position
Since its initial launch, BNB has seen a meteoric rise in its market position. In just a few years, its market cap has soared from below $7 billion in 2020 to surpass the $90 billion mark twice in 2021. As of Oct 9, 2025, BNB is placed fourth in market capitalization at $177.51 billion, just behind BTC, ETH and USDT.
BNB’s impressive growth can be attributed to its expanding use cases and Binance's dominant position in the centralized crypto exchange market, which held a 39.8% market share in July 2025. (Note that BNB's market position may vary occasionally, due to market fluctuations.)
As the crypto landscape continues to evolve, BNB's performance will likely be influenced by various factors, including market trends, technological advancements and regulatory changes.
The utility of BNB
The primary purpose of BNB is to cover transaction and trading fees on the Binance exchange. However, BNB's utility extends far beyond the Binance platform, offering benefits for payments, investments and various online services. BNB has become an attractive option for merchants who can accept it as a form of payment, as well as for users who can use BNB as collateral for loans on certain platforms. With its expanding use cases, BNB has emerged as a versatile and valuable asset in the world of cryptocurrencies.
The subsequent sections of this article will discuss BNB's main utilities (such as trading fee discounts), and its broadening applications beyond the Binance exchange. We’ll also examine how BNB's distinct features contribute to its success and its diverse offerings to users.
Trading and fee discounts
One of the most appealing aspects of holding BNB is that of trading fee discounts on the Binance exchange. Users who hold BNB in their Binance accounts can enjoy a 25% discount on their trading fees (both spot and margin). Additionally, a 10% discount is available for futures trading fees. The BNB trading fee discount program is valid until a specified date, which can be found on the Binance website. It's crucial to consider BNB's price when planning your trading strategy, as it can impact the overall cost of your transactions.
Binance’s trading fee discounts not only boost demand for BNB — they also promote user participation in the Binance ecosystem. The discounts available for BNB holders make trading on the Binance platform more cost-effective and appealing to a broader range of users.
Expanding use cases
Beyond the Binance exchange, BNB's use cases have expanded into various sectors. It can be used to pay transaction fees on Binance.com, Binance DEX and BNB Chain, providing more convenience when trading in the cryptocurrency marketplace. Additionally, BNB can be accepted as payment at establishments that accept cryptocurrency, and can be used to invest in ICOs listed through the Binance Launchpad program.
Moreover, BNB has been integrated into online services as a payment option, so BNB can be used to pay for goods and services online, transaction fees on the Binance exchange and online services on various websites. With increasing applications and integration into diverse platforms, BNB demonstrates its continuing relevance as a valuable and flexible cryptocurrency.
BNB Chain and BNB
BNB Chain (BNB) is a high-performance blockchain network developed for smart contract–based applications, including DEXs and other DeFi products. It was formed in 2022 by a merger of two older chains in the Binance ecosystem: Binance Chain, which didn't have any smart contract capabilities, and Binance Smart Chain (BSC), also known as BNB Smart Chain. BNB plays a pivotal role in BNB Chain’s ecosystem of DApps and other DeFi products, acting as the main utility token and fuel for transaction fees.
In the subsequent sections of this article, we’ll tackle BNB's central role in BNB Chain and discuss its usage in transaction fees, staking and governance.
BNB's role in BNB Chain
BNB is essential for:
Trading and fee settlements on the Binance cryptocurrency exchange
Serving as the blockchain gas token that powers transactions on BNB Chain
Transaction fees on BNB Chain, allowing users to participate in the network’s consensus mechanism
Staking BNB on BNB Chain, which enables users to participate in selecting validators and receiving rewards while maintaining the network's security
Because BNB is a governance token, its holders are privileged to participate in the decentralized on-chain governance of BNB Chain. This allows them to influence the decision-making process, and to contribute to the network's consensus mechanism. Overall, BNB's role in BNB Chain is crucial for maintaining its functionality, security and accessibility.
BNB tokenomics and coin burning
BNB's tokenomics involve a limited supply and a coin-burning mechanism to maintain its value. The coin-burning mechanism involves Binance burning a portion of its BNB holdings every quarter, reducing the overall supply and potentially increasing the crypto's value. This process is independent and verifiable, with quarterly reports detailing the figures.
In this section, we’ll discuss:
The supply and allocation of BNB coins
The coin-burning mechanism that assists in maintaining its value
How these factors contribute to the overall success and stability of BNB as a cryptocurrency.
BNB supply and distribution
BNB has a maximum supply of 200 million coins. The initial distribution of BNB coins included allocations for the founding team and angel investors, and a public sale. Furthermore, Binance uses a portion of its profits to repurchase and burn BNB coins, ensuring equitable distribution and maintaining a stable value.
By preserving a limited supply and implementing diverse distribution mechanisms, Binance aims to create a sense of scarcity and potentially enhance the value of the remaining coins. This strategy ensures transparency and equal opportunities regarding token distribution, making BNB a more attractive asset for investors and users alike.
Coin-burning mechanism
Binance’s coin burning mechanism significantly helps to maintain BNB’s value by reducing the number of coins in circulation, with a long-term target of 100 million coins. Binance performs quarterly coin burns, with the most recent burn occurring on Jul 10, 2025, when a total of 1,595,599.78 BNB, valued at approximately $1.024 billion at the time, were burned. By reducing the circulating supply, this mechanism helps to increase the value of BNB coins .
Moreover, Binance’s auto-burn mechanism adjusts the number of BNB to be burned, according to its price and the number of blocks created on BNB Chain. This ensures a stable value for BNB and provides a long-term growth strategy for the coin. The coin-burning mechanism not only maintains BNB’s value, but also serves as a unique selling point for the cryptocurrency, setting it apart from other tokens in the market.
Regulatory landscape and Binance
Binance has encountered regulatory obstacles in various jurisdictions, but is striving for compliance. In recent years, the exchange has encountered allegations of operating an illegal exchange, running unregistered exchanges and purportedly misrepresenting trading controls and oversight. Despite these challenges, Binance remains optimistic about the regulatory landscape for cryptocurrencies on a global scale.
In this section, we’ll discuss the regulatory challenges faced by Binance and its continual efforts to comply with local and international regulations. We’ll highlight the company's challenges in various countries, and the proactive measures it has taken to address these concerns.
Binance's regulatory hurdles
Binance has been subject to regulatory action in multiple jurisdictions across the world. These include the Cayman Islands, Japan, Malta, the Netherlands, Malaysia, the United Kingdom and Thailand. The company has faced allegations of operating without the permission of financial regulators and misrepresenting trading controls and oversight. Additionally, Binance wasn’t licensed, registered or authorized to operate in Japan, Malta and the Cayman Islands.
These regulatory challenges have prompted Binance to adapt its operations and seek compliance with local and international regulations. By addressing these issues and working closely with regulators, Binance aims to ensure the continued growth and success of both its platform and the BNB coin.
Binance's compliance efforts
Binance has taken proactive measures to respond to regulatory challenges, such as suspending euro transactions and adapting to regulatory changes. The company has also voiced its support for a holistic approach to regulations and demonstrated its commitment to compliance.
Binance has actively sought and obtained licenses in multiple jurisdictions, such as:
France
Italy
Lithuania
Spain
Poland
Sweden
El Salvador
BNB Coin price prediction
As of Oct 9, 2025, BNB is trading at $1,248.49. This current price is just a 6.3% drop from the coin's all-time high of $1,330.51 (registered two days earlier on Oct 8, 2025), and a mind-boggling 3.13 million percent increase from its all-time low of $0.03982, recorded on Oct 19, 2017.
BNB’s long-term price outlook is bullish. DigitalCoinPrice expects the coin to trade at $4,269.04 by 2027 and $6,592.45 by 2030, while PricePrediction is forecasting average priceS of $2,854 by 2027 and $9,189 by 2030.
How to buy, store and trade BNB
BNB can be bought, stored and traded through various platforms and wallets, such as Bybit. Understanding the process of purchasing, storing and trading BNB is essential to making the most of this versatile cryptocurrency.
This section will provide a step-by-step guide to purchasing, storing and trading BNB on different platforms. We’ll discuss the options available for purchasing BNB, the most secure wallets for storing your crypto, and the trading pairs and platforms that support BNB trading.
Buying BNB
You can buy BNB easily on Bybit via the Buy Crypto function, which supports a range of payment methods, including bank cards, Apple Pay, Google Pay, bank transfers, third-party payment processors, P2P trading, fiat deposit and crypto deposit.
Trading BNB
The BNB coin is available on Bybit as a spot pair with USDT and USDC, and as a perpetual futures contract based on both USDT and USDC.
By understanding the various trading pairs and platforms for BNB trading, you can make educated decisions and optimize your trading strategy. As with any investment, conducting thorough research and staying up-to-date with market trends and news is essential in order to make the most of your BNB trading experience.
Storing BNB
After purchasing BNB, it’s important to store it securely in a compatible wallet. Some of the most secure wallets for storing BNB include:
Ledger Nano S
Trezor Model T
YouHodler
These wallets provide varying levels of security and convenience, so it's crucial to choose one that aligns with your needs and preferences.
When choosing a wallet, weigh the pros and cons of each type. Hot wallets — which are always connected to the internet — are more convenient for daily transactions, but are less secure. Cold wallets, stored offline, offer greater security, but may be less convenient for frequent transactions. By selecting the most suitable wallet for your needs, you can ensure the safe storage of your BNB coins.
Summary
Binance Coin (BNB) has established itself as a powerful player in the cryptocurrency ecosystem. Its versatility and utility within the Binance platform and its expanding use cases in payments, investments and online services make it a valuable asset for crypto enthusiasts and investors alike. From its beginnings as an ICO to its current status as the native coin of BNB Chain, BNB has shown tremendous growth and potential.
With a solid foundation in its tokenomics, a coin-burning mechanism and proactive efforts toward regulatory compliance, BNB continues to assert its importance in the ever-evolving world of cryptocurrency. Whether you’re new to the world of digital assets, or an experienced trader, understanding BNB’s unique features, market position and utility can create new opportunities and enhance your cryptocurrency journey.
Frequently asked questions
What is BNB used for?
BNB can be used to invest in stocks, ETFs and other assets on different platforms, as well as for loan collateral and to split expenses.
Is BNB a good investment?
BNB has shown strong performance in the past, and is backed by numerous projects and initiatives, making it a potentially profitable long-term investment. However, make sure to assess your own risk tolerance before investing, and never invest money than you can afford to lose.
How can I buy BNB?
Click here to purchase BNB on Bybit as a USDT Spot pair.
What is the coin-burning mechanism for BNB?
Binance burns a portion of BNB holdings every quarter and reduces the overall supply, potentially increasing the coin's value and benefiting BNB holders.
Which wallets are best for storing BNB?
Secure and reliable wallets for storing your BNB include Ledger Nano S, Trezor Model T and Bybit Web3.
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