History and origin of BNB
BNB, short for Binance Coin, was launched in 2017 as an ERC-20 token on the Ethereum blockchain. Initially created to offer trading fee discounts on the Binance Exchange, it quickly evolved into a utility powerhouse. In 2019, BNB migrated to its native blockchain—the BNB Chain - designed to support a broader ecosystem of applications
BNB’s role in the Binance ecosystem
BNB powers the entire Binance ecosystem, from trading fee reductions to launching new tokens on Binance Launchpad. It also fuels smart contracts, serves as gas on BNB Chain, and plays a key role in Binance’s decentralized finance (DeFi) initiatives and governance.
How BNB crypto works
BNB tokenomics and supply model
BNB has a capped total supply of 200 million tokens. Binance conducts quarterly “coin burns” using a portion of its profits to buy back and destroy BNB. This deflationary mechanism aims to permanently reduce supply to 100 million, increasing scarcity and supporting long-term value.[^1]
BNB Chain vs. Binance Smart Chain
The BNB Chain includes two components: the BNB Beacon Chain, which handles governance and staking, and the BNB Smart Chain (BSC), which supports smart contracts and dApps. BSC is EVM-compatible, making it a popular alternative for DeFi developers seeking low gas fees and high throughput.
Use cases of BNB
Trading fee discounts and staking
BNB is widely used for paying trading fees on Binance, often at a discount. Users can also stake BNB on Binance and other platforms to earn passive rewards, enhancing its appeal for long-term holders.
Gas fees on BNB Chain
On BNB Smart Chain, BNB is the native gas token. Whether interacting with dApps, deploying smart contracts, or minting NFTs, users pay transaction fees in BNB—typically much lower than Ethereum mainnet fees.
Launchpad participation and DeFi integration
BNB enables participation in token launches via Binance Launchpad. It’s also integrated into major DeFi platforms on BSC for lending, borrowing, liquidity farming, and governance.
How to buy and store BNB
Platforms to purchase BNB crypto
BNB is available on most major exchanges including Binance, Coinbase, KuCoin, and Kraken. It can be purchased with fiat or swapped from other cryptocurrencies.
Recommended wallets for BNB storage
BNB can be stored in hardware wallets like Ledger or Trezor, or software wallets like Trust Wallet and MetaMask (with BSC added). Binance’s native wallet also supports easy BNB transfers and staking.
Risks and benefits of BNB
Volatility and regulatory concerns
As with most cryptocurrencies, BNB is subject to market volatility. Additionally, regulatory scrutiny around Binance and its centralized structure may impact BNB’s long-term outlook.
Ecosystem growth and real-world utility
Despite risks, BNB benefits from strong utility and widespread adoption across payments, dApps, and token launches. Its consistent use cases continue to drive demand within a growing ecosystem.
Future outlook for BNB in 2025
BNB remains one of the top cryptocurrencies by market cap, with a vibrant ecosystem and active community.
Should you consider holding BNB?
If you frequently use Binance products or are active in the BNB Chain ecosystem, holding BNB can offer cost savings and yield opportunities.
FAQs
What is BNB crypto used for?
BNB is used for trading fee discounts on Binance, gas fees on BNB Chain, token sales on Binance Launchpad, and various payments and DeFi applications.
Is BNB the same as Binance Coin?
Yes. BNB is the ticker symbol for Binance Coin, the native utility token of the Binance ecosystem.
How does BNB work in the Binance ecosystem?
BNB is integrated into nearly all Binance services, from trading to DeFi. It powers transactions, supports governance, and enables participation in product launches.
Can I stake or earn rewards with BNB?
Yes. BNB can be staked directly on Binance or via third-party platforms to earn passive income, including DeFi yield opportunities on BNB Chain.
Where can I buy and store BNB crypto?
BNB is available on top exchanges like Binance and Coinbase. You can store it in wallets such as Leap wallet, Trust Wallet, MetaMask (with BSC enabled), or a hardware wallet like Ledger
