What is the value of Binance Coin (BNB)? — Market Madhouse | Daniel G. Jennings | The Capital | June 2021
This Binance Coin (BNB) Has become one of the most popular and successful cryptocurrencies.
BNB is an unusual cryptocurrency because Binance, a popular cryptocurrency exchange Built it. They designed Binance as the native asset of the exchange. To explain, the native asset is a token that people can use to pay for the cryptocurrency on the exchange.
Mr. Market likes Binance Coin (BNB). CoinMarketCap lists Binance Coin as The fifth major trend of cryptocurrencies on June 6, 2021In addition, CoinMarketCap estimates Binance Coin (BNB) It is the fourth most valuable cryptocurrency on June 8, 2021. CoinMarketCap gave Binance Coin (BNB) The token price on June 8, 2021 is $330.364.
Similarly, CoinMarketCap estimates that the market value of Binance Coin is 50.721 million US dollars, which is equivalent to Fully diluted market value of $56.375 million, And a 24-hour market volume of US$4.437 million. They calculated these figures based on the maximum supply of 175.533 million BNB and the circulating supply of 153.433 million BNB.
In contrast, Coinbase gave Binance Coin price is $330.34, the market value is 50.6 billion US dollars, the 24-hour market volume is 424 billion US dollars, and the circulating supply on the same day is 153.4 million BNB. Therefore, Binance Coin is on Coinbase.
This Binance Coin (BNB) It was originally an ERC20 cryptocurrency based on Ethereum.They established BNB as a local asset Binance Exchange Or Binance Dex.
However, Binance is now running in what they call Binance ChainContrary to Ethereum, Binance Chain cannot run smart contracts. Smart contracts are digital robots that perform specific tasks. They built Binance Chain as the native blockchain of the Binance platform.
You can use BNB to pay Binance’s 0.1% transaction fee and Binance’s withdrawal fee. You can trade other cryptocurrencies with BNB in Binance Wallet.
They run Binance Dex, The decentralized exchange (DEX) on Binance Chain. Binance Dex provides a variety of financial services, including one-stop investment solution Binance Earn, Binance Pool that allows anyone to mine Binance, and Binance Visa card that allows you to use Binance to pay in stores.
At the same time, Binance Dex provides crypto loans and Liquid Swap, allowing you to exchange cryptocurrencies. They claim that individuals can earn double their income through Liquid Swap.
In addition, Binance Dex also provides derivatives, including USDS-M futures, COIN-M futures, Vanilla options, leveraged tokens and Battle. USDS-M is a Bitcoin (BTC)-Tether (USDT) derivatives. This Coin M Futures Is an Bitcoin (BTC) U.S. dollar derivatives Vanilla options Is a call option for cryptocurrencies, leveraged tokens Give traders more leverage Used for trading. Battle is a derivative that supports long and short trading.
Binance Dex’s trading functions include conversion, interface, margin trading, peer-to-peer (P2P) bank transfer and more than 100 options. And stock options that allow individuals to trade stocks using cryptocurrencies.
I think Binance Coin (BNB) It is popular because they designed it as a financial and trading tool.
Binance Dex allows users to send and receive BNB to anyone else in Dex. In addition, any Binance Dex user can issue new tokens, and individuals can receive tokens in exchange for sent tokens. In addition, you can destroy tokens and freeze tokens as needed.
The trading community can create new trading pairs on Binance Dex. In addition, you can create sell and buy orders through these trading pairs. You can also protect DEX funds through applications such as Trust Wallet.
I think one reason Binance is popular is that they established Binance for cryptocurrency transactions for fintech and blockchain enthusiasts. Since most cryptocurrency traders are blockchain and fintech geeks, they like Binance.
I think Binance Coin (BNB) It is a good cryptocurrency because they designed it as a financial instrument.
My guess is that with the popularity of cryptocurrencies, the value of Binance Coin will grow. However, Binance and custom blockchains pose a huge threat.Threat is Central Bank Digital Currency Or national cryptocurrency.
Remember, the U.S. dollar is the world’s reserve currency and the most popular currency on the planet. Any blockchain used by the Federal Reserve will become the standard of the financial industry. Therefore, all the money and energy invested in other blockchains will be worthless.
So the Fed can kill Binance and Binance Coin (BNB) Through the issuance of a central bank digital currency (CBDC) built in EOS or Ethereum. On the other hand, if the Federal Reserve issues a cryptocurrency built into the Binance Chain, it may increase the value of Binance.
Note: I don’t know what blockchain the Fed plans to use.Although, I doubt it will be EOS (EOS) or Ethereum (ETH).
Conversely, the Fed can increase the value of Binance by increasing its interest in cryptocurrencies. Explain that the Federal Reserve CBDC can increase the value of Binance because the emergence of the Federal Reserve CBDC will convince many people to use cryptocurrency. Therefore, crypto trading may explode, which will drive more traders and more funds to Binance Dex.
Although the Fed CBDC poses an existential threat, I think Binance Coin (BNB) An excellent cryptocurrency for investors and speculators to investigate. I think Binance has a bright future because cryptocurrency trading volume is about to explode.