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If you’re wondering ‘What is Binance Coin?’ that’s probably because you’ve seen it riding high in the list of top cryptocurrency performers in recent months.
Though Bitcoin and Ethereum are still way out in front of all other cryptocurrencies in terms of market capitalization, Binance Coin (BNB) has cemented itself as their main challenger this year. It’s a coin that really has the potential to make it a proper “Big Three.”
Binance Coin’s impressive performance in 2021 has attracted plenty of investors, but if you’ve reached this page because you’re thinking of joining them, it’s important to note that it’s no more immune from the crypto market’s volatile nature than any other coin. Want proof? Well, Binance Coin doubled in price between the start of April and the middle of May, only to fall back to where it started just a week later.
In short, as with all cryptocurrency investments, you should think carefully about whether you could afford to lose all of your money if things were to take a downward turn.
That said, Binance Coin is well worth a closer look even if you just want to find out what it is. Here’s the full story, including how its “burning” system works, its price history, market cap, where to buy it, and the latest news around both the Binance exchange and the coin.
Binance Coin: latest news (updated May 21)
- Binance Coin is recovering after the major crash that affected the entire crypto market on Wednesday (May 19). After dropping below $300 for the first time since March it has currently regrouped to just under $350.
- Binance completed its latest quarterly BNB burn on April 15, removing nearly 1.1 million BNB from circulation.
- The firm is reportedly under investigation by U.S. agencies regarding potential money laundering and tax evasion concerns.
What is Binance Coin (BNB)?
In order to understand Binance Coin you first need to know about Binance.
The world’s largest cryptocurrency exchange based on market cap, Binance typically moves about three times the amount of crypto as the next-leading platform on a daily basis. It’s huge.
Binance Coin — or BNB — was established in 2017 as an Ethereum-based token, both to give users the option to save on fees and to help fund Binance’s expansion. However, as Binance’s ambitions grew, the firm relaunched BNB as a coin running on its own Binance Chain blockchain, and allowed users to swap their old coins for new ones.
It’s skyrocketed in value in 2021, thanks in part to Binance’s own rising popularity and the wider crypto market growth and also due to Binance’s aggressive coin “burning” schedule.
Now at the heart of all of Binance’s initiatives, BNB can be used on the exchange to swap for other cryptocurrencies and pay transaction fees, used for decentralized apps (dapps) that run on the firm’s growing Binance Smart Chain, and even spent at some external websites that support crypto payments via BNB. Users can also “stake” their coins within a Binance wallet to earn rewards in the form of additional BNB.
Binance Coin price history and market cap
As of this writing, Binance Coin is available for $343 per coin, a decline of 50% from the all-time high of $690 set earlier in May 2021. This is part of a market-wide slump that has taken place the last few days, and top coins like Ethereum and Bitcoin are also well off their peak prices.
Even so, Binance Coin has seen incredible growth so far in 2021, jumping from a price of about $38 on January 1 to where it sits today. Anyone who bought into BNB earlier this year or even beforehand has seen some of the most impressive gains of any cryptocurrency so far this year, save for wild cards such as Dogecoin and Shiba…