The influential Changpeng Zhao created Binance in 2017. Initially, it was based in China before relocating to Caymans Islands due to crypto restrictions in China. Within four years, Binance coin grew to become the third biggest crypto after Bitcoin and Ethereum. However, it has slid into fourth place after Tether took its place in the third position.
Binance Coin (BNB) started as an Ethereum ERC token before migrating to the Binance blockchain. It is now used for transactions on the Binance trading platform, the biggest crypto exchange globally by trading volume.
This article explores the predicted price of the Binance coin for this year – 2022. But before that, we shall explain BNB’s price performance and uses.
Price History Analysis
So, where is BNB coming from? First, let’s explore past performance before delving into future price expectations.
Binance coin was launched through an Initial Coin Offering (ICO). A half (100 million BNB) of the total supply was distributed to the founding team and angel investors. The other half was offered to investors at 15 cents raising $15 million. The capital is used for marketing branding and emergency reserve.
The primary use of BNB coins is to pay for transaction fees on the Binance platform. Additionally, BNB is a utility token on the Binance Smart Chain (BSC), meaning you can use it to send tokens, generate passive income and collateral for crypto loans. Other uses include booking and paying for hotels at Travala.com, shopping, gaming, travel, and a fund source for the Binance debit card.
Finite Supply
The blockchain platform has a deflationary burning strategy to ensure a finite coin supply. To be precise, it uses 20% of the profits to buy back and burn BNB coins. The aim is to burn 100 million Binance coins reducing its supply and, in turn, boosting the coin’s demand.
BNB is currently trading at $435.44 with a total circulating supply of 166,801,148.00 BNB. As mentioned, it is the fourth-largest cryptocurrency with a…
