Another area where Binance's blockchain and token play a significant role is that of GameFi - or 'play-to-earn' blockchain games that are powered by cryptocurrencies. ![]() Much like Cardano, Solana, and Terra, Binance Smart Chain consequently became a valid alternative to Ethereum: The total value locked (TVL) of BNBs blockchain within DeFi, for example, ranked only behind that of Terra and Ethereum in early 2022. Here, BNB started to support a chain that initially did not focus on hosting decentralized apps but focused on high transaction speed and being able to handle large amounts of traffic.ĭeFi and GameFi: the main segments for BNBBSC, however, made significant strides in 2021 partly due to traffic overload and high gas prices on Ethereum as well as the growing interest in both Decentralized Finance (DeFI) and NFTs. In 2019, however, BNB moved away from the Ethereum network and migrated to Binance's self-developed blockchain: Binance Smart Chain or BSC (called BNB Chain since February 2022). It initially functioned on the Ethereum blockchain network as an ERC-20 token, offering incentives to owners like reduced trading fees, affiliate rewards, or a lottery ticket system ('Launchpad') that let users invest in new, Binance-selected crypto projects. Noticeable is that the price increase of BNB in November 2021 coincides with a similar price change for Ethereum (ETH) - a cryptocurrency where BNB initially originated in 2017 before coming on its own years later.īNB's history: From reward token in 2017 to an ecosystem after 2019As the name suggests, Binance Coin or BNB originally started as an extension of the trading platform - the most used cryptocurrency exchange in the world. Regardless, Binance Coin ranked in the top 10 most expensive cryptocurrencies in 2022. dollars - a value that very different to the all-time high of 600 U.S. In August 01, 2023, for example, a single BNB coin was worth more than 241.19 U.S. The US Securities Exchange Commission filed a lawsuit against the crypto exchange last month and accused the firm and its CEO of running an illegal exchange, broker-dealer and clearing agency in the United States.The price of the native coin from BNB Chain (formerly BSC) grew by 50 percent in late 2021 but was much lower in 2022. The fifth largest cryptocurrency by market cap could see large liquidations if the price of the token drops to around $220. The negative open interest implies that traders who are betting on a price decline are willing to pay those who are waiting on gains to maintain their bearish positions open on the cryptocurrency.Īt the time of writing, the open interest of BNB on perpetual swaps has crossed $400 million. Some users even compared Zhao’s tweet with the indicted Sam Bankman Fried’s tweet at the time of the fall of FTX.Īs reported earlier this week, crypto traders are also showing pessimism in the derivatives market for the embattled crypto exchange’s native coin BNB amid the growing regulatory turmoil.Ĭoinglass data shows the open interest-weighted funding rate turned negative on Binance’s BNB coin this week. ![]() Several users expressed scepticism over the latest quarterly burn of BNB and internal funds transfer within Binance. Binance Users Skeptic Over Latest BNB Burn In its 23rd quarterly BNB burn in April, the exchange removed over 2 million BNB from the circulation.īinance CEO Changpeng Zhao warned in a tweet that there will be some more on-chain (large) transactions shortly, to further distribute/spread the coins to more addresses. ![]() The 24th quarterly burn also removed 747.51 BNB from circulation as a part of Binance’s Pioneer Burn.īNB burned under the pioneer burn program equals to provable lost funds by eligible BNB Chain users. The Auto Burn formula burns the amount of BNB based on the coin’s price and the number of blocks generated on the BNB chain. Since then, large amounts of BNB are burned quarterly through the Auto-Burn formula. Binance Burns BNB Through Auto Burn FormulaĪs per the announcement at the time of BNB launch, 100 million BNB (half of its total supply) from circulation will be eliminated through a burning process. The price of the BNB did not see a significant increase after the burn was executed as the token traded around $244, 1% up in the last 24 hrs. The exchange has been conducting such quarterly burns of BNB to reduce the token’s supply since October 2017. ![]() The embattled crypto exchange giant Binance completed its quarterly burn of 1.99 million BNB coins worth around $477 million on Wednesday successfully.
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