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The cryptocurrency market has expanded throughout the year at a very large rate, where thousands of coins and tokens are now accessible for trading. To make such trades possible, cryptocurrency exchanges were created. Each of them offered the same yet very distinctive trading options. One that has established itself as one of the best exchanges is the Binance Exchange. But the team behind this exchange did not stop here, as they launched their own blockchain, known as the Binance Chain. The native token of this blockchain is the Binance Coin (BNB). The Binance Chain is not only a medium for trading purposes, but it also focuses on the Decentralized Exchange (DEX) sector. 

About a year after the launch of the Binance Chain, the Binance team launched another blockchain-based network, known as the Binance Smart Chain. The BSC allows users to launch their projects in the same way as they can launch in the Ethereum network. While all this information may sound complicated and overwhelming, both the Binance Coin and the Binance Smart Chain are very easy to be comprehended. Therefore, this article focuses on these two components of Binance, what they offer, how they work, and much more.

What is Binance Coin?

Simply put, Binance Coin (BNB) is the native token of the Binance Chain. The Binance Chain uses Byzantine Fault Tolerance (BFT), which is fairly different from the common consensus mechanisms such as Proof-of-Work (PoW) or Proof-of-Stake (PoS). The BFT is based on the war strategy dilemma also known as Byzantine Fault. Briefly explained, the Byzantine Fault concept entails that some nodes are tolerated if the information is not completely correct due to technological issues. The same idea applies to securing the Binance Chain network.

Since there is no PoW or PoS, BNB tokens cannot be mined. Nevertheless, the validators responsible for securing the network are fairly rewarded. The BNB tokens are also burned. The reason for this is to keep BNB less inflationary, increasing the potential price of BNB in the future. The burning process is done roughly every three months, and the number of burned tokens depends on the activity level in the Binance Chain. As of June 6th of 2021, there have been 15 BNB burns so far. The burning process is expected to continue up to the point where 50% of the initial max supply is burned. 

BNB burn history as of June 2021. Source: Binance

BNB burn history as of June 2021. Source: Binance

The current total supply of BNB tokens is around 169 million BNB, with 153 million BNB in circulation. 

Binance Coin History

Founded in China by Chanpeng Zhao, Binance Coin was launched less than two weeks after the Binance exchange was created. The funding of the project was secured through initial coin offerings (ICO) back in 2017. 
You always can follow him on Twitter as he is pretty famous

Initially, Binance Coin was launched in the Ethereum network and served as an ERC-20 token. People could use the BNB tokens in the Ethereum network to create Decentralized Applications (DApps) through the use of smart contracts. Some months after the release of Binance Coin, the Binance Chain mainnet was created. The BNB tokens in the Ethereum network were then converted to BEP-2 tokens in the Binance Chain, with the Binance Coin being the native token. 

Based on the price chart of CoinMarketCap, the price of BNB when it was initially released in 2018 was around $0.10. Within a month, the price reached $2.70, marking a 2600% increase and a very promising launch in the market. In the bullish trend of early 2018, BNB reached the price of $22.76, marking yet another huge increase in the price. By the end of 2018, the price had dropped to around $4.50. In 2019, BNB had another bullish run, reaching $38.82. The price dropped to $10 in March of 2020. BNB started 2021 at a price of around $38. The following months were the most successful months yet in the history of the Binance Coin. BNB reached its highest of all time in May of 2021 at a price of $690. The price has declined again, and it is around $385 as of June 6th of 2021. 

With a current price of around $385 and a circulating supply of around 153 million BNB, the market cap of BNB is around $59 billion, placing it as the fourth biggest cryptocurrency in the market. The fully diluted market cap of BNB is around $65 billion.

Binance Coin Price Prediction

Here is what the experts have to say about the future price of BNB. 

Binance Coin (BNB)
Rank: 4
$ 306.41
Price (BTC)
$ 47.35 B
$ 2.17 B
24h Change
Total Supply
170.53 M BNB

We at Crypto Academy also have an optimistic view of the future price of BNB. Since most BNB tokens are planned to be burned in the coming years, the supply of BNB might be scarcer than it is now. The demand is likely to increase based on the utility that the Binance Coin offers. This is derived from the fact that Binance is launching the Binance Broker Program, which looks to make the exchange even better than it is now. The success of the Binance exchange is directly related to the success of the Binance Coin. This increased demand can cause a shortage and increase the price of BNB in the future. Moreover, the BTC halving of 2024 is likely to create another bullish trend as it did in the previous halvings. Other things equal, we predict that the price of BNB can easily range from $9000 to $16000 in the next five years. Perhaps, BNB can even exceed $1 trillion in market capitalization.  

Crypto Academy Binance Coin Price Prediction 2021

Coinburea one of the largest channels on Youtube predicts that Binance will hit 15,000$ this bull run. Yes, that’s ‘right counting all factors that Bitcoin will hit $300,000 by the end of 2021.

How to use Binance Coin?

Using Binance Coin is quite simple. For purchasing BNB, you might use the Binance exchange since has the same background. Moreover, the payment options are accessible since you can be with a debit card, credit card, bank transfer, etc. Trading BNB is cheaper with Binance than with other exchanges.

After purchasing BNB, you might have to store them in a safe crypto wallet. You can choose a hot wallet or a cold one (or both). Hot wallets that support BNB are Trust Wallet, Atomic Wallet, etc. Cold wallets that support BNB are Ledger Nano X, Trezor Model-T, etc. 

Once you have your BNB in a wallet, you can safely HODL them or start trading.

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