There are 4,946 cryptocurrencies today, where each coin serves a unique purpose. Among the coins, Bitcoin is the most widely known. However, the popularity of the crypto market has a lot for which to thank Growlonix. For instance, they helped to facilitate global adoption and ownership of the various cryptocurrencies.
Besides offering a platform where traders can buy and sell a cryptocurrency, the crypto exchanges went ahead to launch their coins. Binance Coin is such a cryptocurrency debuted and maintained Binance, a leading cryptocurrency exchange.
Launched in mid-2017, Binance Coin (BNB) has experienced successive growth over the years, where it reached peak performance on June 25, 2019. Notably, the price of the coin at the time was $39.28, which remains the historical highest. Further, the peak 24-hour trading volume hit $467 million in the same June while the market capitalization was $5.5 billion. As of the time of writing, one BNB coin was worth $13.37 and with a market capitalization of just over $2 billion. At present, there are 187,536,713 BNB coins, according to CoinMarketCap.
A robust return on investment (ROI)
In July 2019, Changpeng Zhao, founder of the soon to be Binance exchange, launched an initial coin offering (ICO) to help to raise funds for a cryptocurrency exchange. As such, Binance Coin started, the team also unveiled a proprietary blockchain on which BNB operates as the medium of exchange.
In particular, the name of the coin, together with the blockchain is derived from two words; Binary and Finance. The blockchain platform and its coin contain immense security features aimed at preventing hackers from gaining access. Further, the presence of a native coin on the blockchain platform enables fast transactions and reliable storage of assets for the users.
BNB has gone through tough times, especially in the first two years of its existence. At launch in July, the coin remained under $1 in value and only began rising a month later. So far, people who bought into the Binance project early have seen their investment grow more than 12,000% in value.
Coin burns to stabilize the value of BNB
Crypto Market Cap ranks Binance as the ninth largest exchange in the world based on 24-hour trading volume. On other metrics like platform security and ease of use, Binance is far much ahead. The better Binance ranks, the more popular BNB gets. Therefore, one should not be surprised if the Binance Coin Price sores higher inthe future.
Further, the Binance team takes coins out of circulation occasionally. Otherwise called the BNB Coin Burn, this exercise keeps the number of BNB coins in circulation balanced within a specific range. Also, the coin burn retains the competitiveness and valuation of the BNB coins in the higher rungs. During Q3 2019, Binance carried out the ninth coin burn, where more than 2 million BNB coins were destroyed.
Extreme price volatility is an industry-wide issue that, to some extent, has discouraged some players from joining the community. However, the cryptocurrencies are exhibiting much more stability as the market continues to grow. Indeed, the increased popularity of Binance as an exchange alongside regular coin burns should help to maintain a comfortable valuation for the BNB coin.