Know more about Binance coin: the 5th largest cryptocurrency in the world
With its smart contract capabilities and role of being the utility token for the biggest cryptocurrency exchange in the world, Binance coin (BNB) has managed to be a contender to market dominance. This is a crypto trading exchange that was founded in 2017 by Changpeng Zhao. Since its launch, it has become hugely popular and is one of the leading crypto exchanges in the world. The reason for this is the wide range of products for investment, relatively lower fees, and easy access.
Apart from this, this cryptocurrency exchange has a blockchain of its own as well, the Binance Smart Chain (BSC). It helps create an ecosystem of all the applications based on blockchain, known as Decentralised Apps (DApps). These apps operate in Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), and many more. In terms of performance, BNB has been doing remarkably well. When compared to its competitors, it is third in terms of returning cryptocurrency with a return of a whopping 1,312%. It managed to beat Huobi and FTX to become one of the best centralized exchange coins. It has even outperformed other top-performing decentralized exchange coins like Uniswap and PancakeSwap.
An important use case for Binance coin that has impacted the exchange’s trading volume is the decreased trading fees. In 2021, it had trading volumes between the range of $60 and $90 billion every day, which means that it might easily reach over $20 trillion at the end of the year. As the trading volume continued to increase, the demand to decrease trading fees increased as well. With BNB, users are saving the cost of trading fees.