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What’s New, BNB?

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Jan 11, 2023
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7 min read
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This blog post will cover:

  • BNB relevant summary
  • The future of BNB
  • Conclusion

Binance CEO, CZ (Changpeng Zhao), has been in the news a lot recently, given the collapse of FTX.  

However, regardless of all this hype around CZ against FTX, there has not been too much news about Binance’s native coin, BNB recently. So what’s new with BNB? Let’s take a look.

BNB relevant summary

BNB is the fourth biggest cryptocurrency by market capitalization at around $46 billion , falling behind only Tether ($65 billion), Ether ($157 billion) and Bitcoin ($327 billion). BNB is mainly used to pay trading fees on the Binance Crypto Exchange, which is now the biggest online cryptocurrency exchange in the world. It’s a token that initially used to run on the Ethereum network, but now it has switched to its own Binance chain.

The all-time peak price of BNB was in May, 2021 at around $680, and it is currently trading at approximately $300 a coin. While this is a more than 50% loss in value compared to the all-time high, it’s nowhere near the loss of value of other big coins such as BTC or ETH, which have lost almost 75% and almost 80% in value compared to their peak. 

While the difference between losing 50% or 75% of your assets might not seem that big to novice investors, firstly, losing “only” 50% means that you have double the money left compared to losing 75%. Secondly, since the value of most big market cap crypto assets still very heavily correlates, this difference is actually a very big deal. It can be said that BNB has been overperforming the market during the past 1,5 years. 

Also, for more than a year the crypto market is continuing a bearish trend, and cryptocurrencies and tokens are updating their minimum values. But even in this difficult situation, the coin of the most popular crypto exchange and blockchain Balance Smart Chaine — BNB — demonstrates a strong growth of dominance. 

The increase in BNB dominance in 2022 exceeds 80%. The growth of BNB dominance from November to December was more than 29%, with 4.98%, dominance reaching 6.31%, and currently at 5.72%.

We should also pay attention to the growth of activity of the blockchain team development since mid-November. That is confirmed by the graph below. This trend may tell us about upcoming innovations and possible additions:

Another positive point is the growth of the total number of unique addresses that contain assets in the network:

In terms of popularity of applications on Binance Smart Chain, the decentralized exchange "PancakeSwap" took the leading position. Surges of activity can be observed on the histogram below. The reason for the increase in user activity on the exchange was the launch of the World Cup in Qatar. Together with the Galaxy project the platform have launched a prediction contest for upcoming matches with cash prizes for the winners.

If you are interested in a price prediction for BNB, we already have a detailed article to check out.  

The future of BNB

The future of BNB is ultimately tied to the future of the Binance Crypto Exchange. This currently looks more promising than perhaps ever, as one of its biggest rivals, FTX has just gone out with a huge bang, while other rivals such as Coindesk and Kraken are also falling behind. 

Many former users of FTX, who were able to pull out their money, or at least part of their money during the collapse, now use the Binance platform. Binance is currently in a very strong position. Furthermore, Binance is more than a simple crypto exchange. CZ has always been heavily focused on new initiatives, technological improvements and acquiring other crypto related companies. 

Binance has its own incubation program, selecting and funding the most promising new crypto and blockchain related projects. Here are some of the most exciting projects they are currently supporting, which highlight the possible directions where Binance could become an even stronger player on the crypto market:

  1. Wallet Guard” and “SangBags Protocol” are two independent projects focusing on Web3 security solutions with an emphasis on scams as well as fraud and phishing protection. With the continuously increasing number of crypto related scams, this is definitely an area with huge growth potential.
  2. The Harvest” is a free to play MOBA video game, which is currently funded by Binance. Binance has shown increasing interest towards blockchain gaming recently.
  3. The “Mind Network” is basically a Web3 data protocol that allows users to process their data more efficiently using conventional technologies mixed with crypto and blockchain technologies. 
  4. Bracket Labs Group” and “dappOS” are two companies that offer DeFi protocols and decentralized blockchain protocols, that have also made it into the 5th season of the Binance incubation program.

Conclusion

It’s hard to predict the future of such a big project, however, we can follow the updates and see what activities and events it takes part in. SimpleSwap always stays tuned for more information about famous crypto projects, so don’t forget to check our Blog for news. 

If you are willing to read more about BNB and the Binance platform, check out the What Is BNB article telling the background of the project and its pros and cons. For detailed information on the BNB price change, make sure to read this post

SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.

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