2017: Binance Coin launched
Binance Coin (BNB) was launched through an Initial Coin Offering (ICO) in July 2017, just 11 days after the Binance cryptocurrency exchange launched. Initially, BNB was issued as an ERC-20 token on the Ethereum blockchain, with the main purpose of providing users with a convenient way to pay trading fees at discounted rates on the Binance platform. The ICO price was set at around $0.15 per BNB.
2018: Supply expansion and first “burning process”
In 2018, Binance expanded the utility of BNB beyond simply covering trading fees. It became usable in a variety of applications, including paying transaction fees on Binance’s then-new decentralized exchange, Binance DEX. Binance has also introduced the quarterly “burn” mechanism, where a portion of BNB is permanently removed from circulation to reduce supply and potentially increase its value. At the end of the year, the price of BNB was around $6.
2019: Launch of the Binance chain and mainnet
2019 marked a significant development for BNB as Binance launched its own blockchain, Binance Chain, and migrated BNB tokens from the Ethereum network to Binance Chain. This transition enabled faster transactions and greater utility within the Binance ecosystem. The price of BNB rose to around $15 by mid-2019.
2020: DeFi integration and price growth
During 2020, BNB was integrated into Binance’s DeFi (decentralized finance) ecosystem, which also included products such as Binance Smart Chain (BSC), launched to support the creation of decentralized apps and smart contracts. This increased its functionality and demand. At the end of the year, BNB was trading at around $37.
2021: All-time highs and market expansion
BNB experienced exponential growth in 2021, reaching an all-time high of over $680 in May, driven by the broader crypto market upswing and increasing adoption of BSC for DeFi applications. Binance has continued to expand BNB’s use cases, including online payments and travel bookings.
2022: Regulatory challenges and resilience
In 2022, Binance faced regulatory challenges in several countries that impacted the overall perception and utility of BNB. Despite these challenges, BNB managed to maintain significant value and demonstrate its resilience to fluctuating prices $300 to $500.
2023: Sustainability initiatives and stable growth
In 2023, Binance focused on sustainability initiatives for BNB to improve the efficiency of its blockchain and reduce environmental impact. These efforts aimed to align BNB with global sustainability trends in technology. The price of BNB showed stable growth, reflecting the ongoing development and community confidence in trading $330.
Future prospects of the BNB
Binance’s continued improvements to its platform and ecosystem are expected to support further BNB growth. Binance’s goal is to consolidate BNB’s position not only as a utility token, but also as a major player in the blockchain-based financial system. BNB should go well beyond that $1,000 reach its peak in the next few years.
