The price of BNB (BNB) has fluctuated historically between $0,1 (August 01, 2017) and $690 (May 10, 2021). BNB is the native token of the BNB Chain. BNB derives its value from its various use cases within the Binance ecosystem. BNB could go significantly higher if Binance.com maintains its status as the number one crypto exchange in the world, attracting more users and volume to its platform.
BNB (BNB) price history
The BNB (BNB) price has fluctuated historically between $0,1 (August 01, 2017) and $690 (May 10, 2021). BNB’s price history starts in August 2017. This information is based on the data from Coinmarketcap. BNB was launched as an ERC-20 token on the Ethereum network by Binance.com, the largest cryptocurrency exchange in the world. BNB was originally called Binance Coin.
BNB entered the market in 2017 with a price of around $0.1 and reached $10 in December 2017, following the general crypto market boom. In 2018, BNB experienced a sharp decline along with the rest of the crypto market, dropping to a low of $4.2 in December 2018. It also suffered from regulatory uncertainty and security breaches that affected Binance.com. Despite a sharp decline, the price of BNB didn’t fall as much as most of the altcoin market.
2019 BNB recovered from its slump and reached a new all-time high of $39.6 in June 2019. This was driven by several factors, such as the launch of Binance Chain, a native blockchain for BNB that allowed it to migrate from Ethereum and support faster and cheaper transactions. Binance also introduced the Binance Launchpad, a platform that allowed users to participate in token sales of new projects using BNB.
Below is a historical price chart of BNB.
BNB faced some challenges due to the COVID-19 pandemic in 2020, which caused volatility and liquidity issues in the crypto market. It also faced competition from other blockchains and DeFi platforms that offered similar or better features than Binance Chain. However, it maintained a stable price range of around $15-$30, benefiting from its strong user base and ecosystem.
In 2021, BNB exploded in popularity and price, reaching a staggering all-time high of $690 in May 2021. This was mainly due to the launch of Binance Smart Chain (BSC), an upgraded version of Binance Chain that supported smart contracts and interoperability with Ethereum. BSC attracted many DeFi and NFT projects looking for a cheaper and faster alternative to Ethereum and offered incentives for users to stake their BNB tokens to secure the network.
BNB also benefited from the growing adoption of crypto by institutional and retail investors and the increasing demand for Binance.com services.
2022 BNB faced some correction and consolidation after its meteoric rise in 2021. It reached a low of $196 on the 19th of June 2022, when the whole crypto market was in a free fall. The name Binance Coin was officially abandoned in 2022. Now the coin is just called BNB, the same as the ticker. The Binance Smart Chain ecosystem was also rebranded to BNB Chain in 2022.
Compared to BTC, BNB has performed relatively well over the years, especially regarding percentage gains. While BTC has increased by about 100x since 2017, BNB has increased by about 3000x in the same period. However, BTC still remains the most valuable and influential cryptocurrency by far, with a market cap of over $1 trillion, while BNB has a market cap of around $50 billion.
The all-time low price of BNB was $0.1 on August 01, 2017. The all-time high price of BNB was $690 on May 10, 2021.
What is BNB?
BNB is the native token of the BNB Chain. BNB Chain is one of the biggest smart contract platforms in the market, competing against Ethereum, Tron, Cardano, and Solana.
BNB was launched on the Ethereum platform by the Binance.com crypto exchange in 2017. It was originally called Binance Coin. BNB had utility only within the Binance ecosystem, used for paying fees and participating in the Binance Launchpad.
When Binance launched the Binance Chain in 2019 and Binance Smart Chain in 2020, BNB became the native token of those platforms as well. Most of the liquidity also shifted to Binance’s blockchains.
It’s important to note that a rebranding took place in 2022, where the name “Binance” was dropped. Binance Coin became BNB, and the Binance Smart Chain became BNB Chain. This emphasizes the decentralized nature of BNB.
Despite the rebranding, BNB can still be used as a utility token on the Binance exchange. Hence, it is not just a native token of a smart contract platform like ETH, SOL, or ADA. BNB serves as a hybrid coin with multiple uses, functioning both as an exchange token and a native token of a smart contract platform.
Check out our in-depth BNB crypto guide to learn more about the history of BNB and the technology of BNB Chain.
Why is BNB valuable?
BNB derives its value from its various use cases within the Binance ecosystem. Initially introduced as the utility token for the Binance exchange, BNB provided several benefits to users on the platform. Traders could use BNB to pay for trading fees, participate in token sales on Binance Launchpad, and access other services within the Binance ecosystem. This created a demand for BNB as users sought to take advantage of these benefits and discounts.
Below is a screenshot of the Binance.com website.
Over time, Binance expanded its offerings by launching the Binance Smart Chain (BSC), a blockchain platform that enables the creation of decentralized applications (DApps) and smart contracts. BNB then became the native token of the Binance Smart Chain, fueling its ecosystem. BNB’s value on the Binance Smart Chain is driven by its role in network operations, including paying for transaction fees, participating in decentralized finance (DeFi) protocols, and engaging in yield farming and staking activities.
Integrating BNB into the BNB Chain ecosystem has increased utility and demand. BNB’s value is influenced by factors such as the adoption and usage of BNB Chain, the overall popularity of the Binance exchange, market demand for decentralized applications, and general market sentiment towards cryptocurrencies.
Note: The Binance Smart Chain has been known as BNB Chain since 2022.
Additionally, Binance periodically conducts token burns, where a portion of BNB tokens is permanently removed from circulation. This token burn mechanism helps create scarcity, potentially increasing the value of the remaining BNB tokens.
Overall, BNB’s value is derived from its utility within the Binance ecosystem, its role within the BNB Chain, and market dynamics influenced by supply and demand factors.
The price prediction of BNB
BNB could go significantly higher if Binance.com maintains its status as the number one crypto exchange in the world, attracting more users and volume to its platform. This would increase the demand and utility of BNB, as it is used for various purposes on the exchange, such as paying fees, participating in token sales, staking, etc.
BNB could also benefit from the success of BNB Chain, which is the native blockchain of BNB that supports smart contracts and interoperability with Ethereum. BNB Chain could attract more DeFi and NFT projects looking for a cheaper and faster alternative to Ethereum and offer incentives for users to stake their BNB tokens to secure the network. This would increase the value and scarcity of BNB as more tokens are locked in the network.
Below is a list of the major smart contract platforms according to TVL. If BNB Chain can compete with other emerging blockchains such as Solana, Cardano, Terra, etc., it could boost the confidence and adoption of BNB.
On the other hand, BNB could crash if Binance.com faces serious regulatory or legal challenges from various jurisdictions that accuse it of operating without proper licenses or compliance. This could damage its reputation and trustworthiness and cause users to migrate to other exchanges that are more regulated and secure.
BNB could also suffer from the failure or attack of the BNB Chain, which could compromise its functionality and security. BNB Chain could also lose its competitive edge if other blockchains offer better features or solutions or if Ethereum solves its scalability and cost issues. Moreover, BNB could be affected by the crypto space’s general market sentiment and volatility, which could cause sudden drops or spikes in its price.
In conclusion, BNB has a lot of potential to grow in the future but also faces many risks and uncertainties. It is a highly speculative asset that requires careful research and analysis before investing.
If you are interested in buying BNB, check our beginner’s guide on how to buy BNB. It gives you step-by-step instructions on how to purchase BNB easily and safely.