Binance Coin (BNB) is the cryptocurrency used to pay for services on the most popular crypto exchange, Binance. It is currently up 14% against US Dollar (USD) and 15% against Bitcoin (BTC). The coin was initially ignored as Binance did not have a significant number of users but given the problems and delays with other exchanges, investors were eager to switch to Binance from preexisting platforms like Coinbase and Kraken. Binance had been exceptionally good at spreading its message on social media platforms like Twitter which encouraged many users to join the platform for its robust trading experience, easy account registration and speedy verification process.
As more and more users discovered that Binance had a lot more coins to offer than its competitors, the number of users soared to new highs. This created an increasing demand for Binance Coin (BNB) to be used for paying exchange fees as well as buying other coins. Binance has also been encouraging the use of Binance Coin (BNB) to pay for exchange fees with a flat 50% discount on fees! This is exceptionally useful for those who want to trade in high volumes and on a regular basis. It also creates more demand for Binance Coin (BNB) by attracting more users to the platform.
Binance Coin (BNB) currently ranks at 18th place in terms of market cap. It may not appear to be like other cryptocurrencies as it is not a project itself but a token to be used for paying for services on Binance. However, where it differs from most cryptocurrencies is in the arena of use case. Not many blockchain projects today have any significant use cases yet. This is also the reason why Binance Coin (BTC) ranks in the top 20.
Apart from its use as a utility token, Binance Coin (BNB) has also proven to be a good long term investment. The BNB/USD chart shows that Binance Coin (BNB) has not had any massive correction as is the case with most cryptocurrency. On the very contrary, the chart appears to have retraced a bit after the December 2017 sell off and now looks to be on track for further gains. As a deflationary asset with a total supply of 194,972,068 BNB token, Binance Coin (BNB) has good future prospects as long as Binance continues to be one of the best crypto trading platforms.
Binance CEO, CZ has made it clear that the team is focused on coins that have long term potential instead of low value coins pumped up on hype. He has also said that in future, Binance will focus more on projects that have more room to grow. This means that Binance will focus more on small cap coins and ICOs with potential rather than large cap coins that do not have much room for growth. Binance already allows users to invest in ICOs held on Binance. A recent example is the Bread ICO. So long as Binance continues to attract small cap coins and ICOs to its platform, investors looking for higher returns than they can get on Bitcoin (BTC) will continue to register on the platform and with the continued use of Binance Coin (BNB), its value will only appreciate in time.