The exponential way in which the price of BNB, the currency of the world’s largest exchange, Binance, rises, can be classified as surprising. Since its inception in 2017, what started as a token «Discount coupon», Has appreciated by more than 100,000%.
It should be noted that Binance Coin is now widely used for thousands of operations thanks to its low fees. Although their creators state that they have no intention of competing with Bitcoin or Ethereum, these two currencies have much higher transaction fees than BNB.
In this way, the advantages offered by the Binance coin are appreciated by the community, where it has been incorporated into two native chains. In this way, one of the main causes of the growth in its valuation is that this token has expanded to hundreds of crypto projects.
Usability sets the tone for BNB’s rising price
The large or small number of users is what determines whether the price of a currency like BNB rises or falls. In that sense, the Binance coin has all the winners, which is reflected in its current value which, at the time of writing, is trading above $ 120.
That is why its creators state that it is one of the currencies with the greatest growth potential. As its objectives are met, its value will increase in a much greater proportion than the current one.
«BNB’s vision is for it to become the native token on multiple specific blockchains», States the aforementioned statement. It also adds that: «To become a true mass adopted application currency, it must be able to facilitate billions of transactions per day».
Although the company considers that They have a long way to go», The way the BNB price has risen in recent weeks, may be a reference to its potential. Taking this into account, this token can be considered as, although not a replacement, it is an alternative to other currencies.
Proof-of-Burn, one of the strongest points of Binance Coin
Unlike most of the most widely used digital currencies like Bitcoin or Ethereum, BNB is handled in a very original protocol. Its about Proof-of-Burn or burn test.
Bitcoin unfolds with it Proof-of-Work (PoW), which consists of mining from thousands of computers that compete with each other for block processing. Ethereum, works with both, with PoW and with Proof-of-Stake, which is the generation through betting. As regards BNB, it “burns” as its price rises or as usability increases.
In other words, each time the coin advances positively on these two factors, a certain number of tokens are taken out of circulation. In this way its scarcity is guaranteed.
The BNB burning process consists of sending a certain amount of tokens to a recycling wallet.
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