Introduction
In a crypto market that changes almost daily, BNB is one of the few digital assets that has exhibited both strength and usefulness. Initially, BNB was launched via ICO in 2017. In the beginning, BNB was just a utility token used for discounted trading fees. However, the token is now the native token of BNB Chain, which is a network of dApps, DeFi protocols, and Web3 innovations.
More Than Just a Trading Token
Though BNB is most commonly referred to as a token that gives trading fee discounts on the Binance exchange, such utility is just the tip of the iceberg.
Transaction Gas: Tying to the BNB Smart Chain (BSC) and opBNB, BNB is the gas that keeps the network running. As a result, millions of transactions can be done in a matter of seconds at a very low cost.
Binance Launchpad & Launchpool: Access to the tokens of the future is granted to users holding BNB only. Thus, those seeking "alpha" can find it by holding BNB which usually leads to the earliest-stage projects.
Payments & Travel: Once the crypto industry was considered as unapproachable for ordinary people but now through the likes of Travala, BNB can be used in everyday life starting with flights and hotels.
The Deflationary Mechanism: BNB Auto-Burn
BNB is one of the most bullish crypto tokens having a decreasing supply over time. To prevent BNB from becoming inflated or devalued like fiat often happens, BNB has an inbuilt "Auto-Burn" system. In fact, on a quarterly basis Binance executes a formula that is dependent on the price of BNB and the number of blocks produced on the BSC in order to remove a portion of the supply permanently. This scarcity model is designed to increase value over time as demand grows and supply shrinks.
The Backbone of DeFi and Web3
BNB Chain is still among the top blockchains worldwide in terms of activity. BNB Chain is home to a wide variety of NFT marketplaces, gaming projects (GameFi), and decentralized exchanges. Along with the announcement of Layer 2 solutions such as opBNB, the network has become even more efficient and scalable, thus able to accommodate the next billion Web3 users.
Conclusion
BNB is comparable to a "blue-chip" crypto asset. It is not merely a speculative asset but a base layer of the whole crypto economy. So, if you are a day trader who wants to save on fees, or a DeFi yield farmer, or even a long-term investor who believes in the blockchain infrastructure, then you should know that BNB is still an indispensable asset in a diversified portfolio.
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