BNB is the own coin of the Malta-based giant cryptocurrency exchange Binance, which was founded in 2017. Binance is the world's largest cryptocurrency exchange, and BNB is the 3rd highest crypto by market capitalization. In the first four years of launching Binance Coin, the Binance exchange offered commission discounts in exchange for paying commission fees with BNB. This was the first thing to encourage the use of BNB.
BNB Coin Burn
Binance conducts BNB burning events 4 times a year. BNB, whose total supply was 170,532,785, decreased to 166,801,148 with these burning transactions. The amount of coins burned is 20% of the Binance exchange's profit for the 3 months of that year. The burning process is completed by being taken from the part owned by the exchange with commission fees and sent to an inaccessible wallet. Burning operations will continue until the circulating supply of BNB drops to 100 million. The second thing that encourages BNB usage and price increase is these transactions.
BNB Usage Areas
BNB can be used for buying and selling of coins listed on the Binance exchange. Crypto assets with a low satoshi value in the wallet can be converted to BNB with two clicks. This event is the 3rd function that will increase the use of BNB. In the Binance Earn section, it is possible to earn interest by staking BNB in flexible, fixed and high-risk investment opportunities. At the same time, BNB is staked in events such as ICOs, IFO projects, mining pools such as Launchpad and Launchpool, which are listed on Binance, and the opportunity to earn from different cryptocurrencies is offered. This is the fourth incentive to increase BNB usage as users show great interest in these events.
Binance Smart Chain
Binance has developed a network called Binance Smart Chain as a competitor to the Ethereum network. BNB is used as gas fee in this network. Due to the huge increase in transaction fees on the Ethereum network, users who switched to the Binance Smart Chain network exceeded millions and currently BSC is used 2 times more than Ethereum. It is absolutely necessary to keep some BNB in the wallet to pay the fees on the network, so this is the 5th point that encourages BNB usage.
Decentralized Exchanges
Many decentralized cryptocurrency exchanges, mainly PancakeSwap powered by Binance, also use BNB for transaction fees, mostly because they switch to the BSC network. At the same time, staking with BNB is offered in liquidity pools in exchanges where a share of commission fees can be obtained by providing liquidity with farming, staking and pool activities. Investors somehow have to use BNB.