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Binance Coin (BNB) is the cryptocurrency offspring from one of the world’s largest virtual currency exchanges, Binance. The token was launched in July 2017 as an ERC20 token based on the Ethereum blockchain, in its initial coin offering (ICO) it raised over $15 million for Binance.
Binance as a cryptocurrency exchange was launched in early 2017, it was the world’s largest cryptocurrency exchange desk (by trading volume) by April 2018 the following year.
Binance Coin is primarily used to pay for services and fees when trading other cryptocurrencies or digital assets on Binance itself. Using BNB often grants the trader discounts over using other payment methods on the exchange, as a result, it’s often characterized as a sort of loyalty coin.
BNB cannot be mined, as it was all premined during Binance’s initial offering. If you want to get your hands on some you’ll have to buy some through an exchange. Even though BNB is native to Binance, it can be traded on other market places too liek Banco, IDEX, and Gate.io.
Given the size and popularity of Binance, BNB coin has continued to grow as one of the most valuable cryptocurrencies available today.
Binance coin 2018 recap
BNB got off to a good start in 2018, it opened the year at just under $10.00 and rose up to $24.46 by the second week of January, but following a market correction it dropped nearly 30 percent in the following 24 hours. This would be the highest price BNB would see all year.
Binance Coin 2018 performance reviewBinance Coin remained uncharacteristically stable, as far as tokens go, for the main portion of the year going through period up and down swings, from between $12 to $17. BNB wasn’t strong enough to resist the bear market though, over the last two weeks of November its value dropped swiftly, by around 40 percent, from $9.45 to $5.61.
BNB/USD 2019 Q1 performance review
If only all cryptocurrencies and tokens performed like Binance coin. It set the perfect example for how to start a year, opening from its disappointing end in 2018 and showing nothing but growth.
Credit: eToroBinance Coin Q1 performance reviewBNB opened the year from where it left 2018 at $5.92, by the end of January it had grown a very conservative 5 percent to $6.17. Indeed, that is nothing to shout about but Binance Coin also threw up no surprises, and showed positive growth in a period where most other cryptocurrencies were faltering.
February was a much better month, and again BNB showed a strong upward trend with no negative surprises to report on. Across this month, the exchange token saw 57 percent growth, increasing from $6.17 to $10.34 over the 28 day period.
End of Q1 Binance Coin performance reviewThis trend continued strongly into March, and the coin saw a further 55 percent growth growing from $11.46 to $17.47. The last day of the quarter was also the day that BNB saw its highest price for the whole opening quarter. From the start to end of the quarter Binance Coin has grown from $5.92 to over $17, a near 200 percent increase in the space of three months.
Noteable events for Binance Coin in Q1
Binance Coin was listed on a further three cryptocurrency exchanges over the first few months of the year. As a utility token for the world’s biggest exchange, the more freely it can be traded, the better it would seem.
Binance Coin was listed on Livecoin on March 21 and Bitrue on March 28, observing the charts, days after these listings the coin characteristically jumped in value. The exchange coin was also listed on Bitsten on April 2, and again, saw a noticeable price increase in the hours that followed.
Binance Coin’s inextricable links to its parent digital asset exchange, seemingly also has a positive impact for the token. At the end of March news broke that Binance would be helping over 1,300 newsagents in Australia sell Bitcoin direct to consumers with the help of “Binance Lite.” There has been no mention of Binance Lite offering BNB, but any news that’d good for Binance is also good for Binance’s native token.
BNB veterans will know that at the start of every quarter there is a coin burn, where a portion of available BNB is destroyed in the interest of encouraging positive growth for the remaining tokens by reducing the circulating supply.
Looking forward into Q2 2019 and beyond
Binance Coin has already gotten off to an excellent start in Q2, and is already setting a new high for the year at a hair under $20 per token. Indeed, given the strong start BNB has seen so far this year, and in the first few days of Q2 2019 looks like it could be a stellar year for the fledgling exchange utility token.
While a date for final roll out has not yet been announced, Binance further pushed forward with plans for its own blockchain, Binance Chain in Q1. There is no doubt that in the remaining months of the year we will hear more news about Binance’s blockchain development and eventual move to becoming a decentralized exchanged. It’s certainly a story to follow closely if you are closely interested in the performance of BNB.
Binance Coin start of Q2Binance has established itself as one of the most profitable cryptocurrency businesses, and it seems to be displaying the same strength into 2019, with further expansions and product launches on the horizon it should only be good news for BNB holders.
If Binance is performing well, you can probably be sure that its native token will be too.
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Published April 26, 2019 — 15: 18 UTC