Binance is currently the biggest exchange in the world. Its native coin is BNB. It has quite a few use cases. For example, in the CEX, you get discounts on trading fees with BNB pairs. It ranks at #4 by market cap. In other words, it is a popular coin.
So, is BNB currently the best exchange coin? We will look into this and see what it has to offer. It’s also a good moment to compare it to two other popular exchange coins, OKX’s OKB and KuCoin’s KCS.
#Binance completes 22nd quarterly #BNB burn!
🔥 2.06m #BNB has been burned 🔥 pic.twitter.com/21v9R7H78K
— Binance (@binance) January 17, 2023
What Is BNB?
BNB is the coin that powers the BNB ecosystem. Binance is a part of this ecosystem. So, if you pay transactions fees with BNB, you get a discount. Currently, you receive a 25% discount when paying the transaction fee with BNB. To clarify, this is valid until at least 13th July 2023. However, this is only for spot and margin trading fees. For futures trading, you still save 10%.
But this is not restricted to the main Binance exchange. You also receive discounts when trading on the Binance DEX, BNB Beacon Chain, and BNB Smart Chain (BSC). That is, of course, if you pay transaction fees with BNB.
If we look at the current BNB price, that is $328.91. The market cap is $51.9 billion. There’s also a max supply of 200 million BNB. The current total supply is 157.9 million. That’s also more or less the number of BNB coins in circulation.
We also included BNB in our 50x Master Portfolio. Our video team just released the monthly update. In the same way, you can also read the dedicated article.
This brings us to an interesting feature of the BNB token. There’s a burning process in place. The plan is to reduce the total supply to 100 million coins. Binance does this in two different ways. For instance,
- In each block, they burn a fixed ration of gas fees. The BSC validators decide how much to burn.
- Each quarter, Binance burns a certain number of BNB. It bases this number on the number of produced blocks and the BNB price. There’s a formula for this, which you can see in the picture below. It keeps track of real-life BNB burning.
This makes the BNB coin scarce and, as a result, more valuable. So, BNB is available on a few exchanges, including Binance.US for our American readers. The picture below shows the burning stats for BNB.
Source: BNB coin Burning site
BNB Compared to OKB and KCS
When looking at centralized exchanges, Binance is currently in pole position. However, OKX and KuCoin are also in the top 55 by market cap. OKX and its OKB token take 26th spot, and KuCoin with the KCS token are in 54th place. So, what makes one of these tokens stand out? Let’s have a look. We start with a comparison chart.
|CoinGecko rank by market cap||
% from ATH
The BNB has a couple of advantages over the other two coins. For example, it has more users and a higher price. This may attract more investors, with a higher potential for positive price change. It also has a burning mechanism in place. So, this may make it more attractive to investors, due to expected scarcity. In turn, this may lead once more to an upward price development.
However, especially in daily volume and monthly visitors, Binance and the BNB coin kill it. On the other hand, all three offer good earning products on their coins and tokens. For example,
- BNB – Binance offers 3.1% for staking BNB over a 120-day period.
- OKB – OKX offers 5% on flexible savings.
- KCS – KuCoin offers 3.14% on flexible staking. Furthermore, they have an Earn program when you hold more than 6 KCS. Your reward is a share of the trading fees.
Still, BNB has more to offer than either the OKB or KCS tokens.
We looked into the BNB coin. As we saw, it powers the BNB ecosystem. This includes not only the Binance centralized exchange but three more exchanges. Furthermore, there’s an explanation of the BNB coin. For example, we explain its burning mechanism and why this is beneficial.
There’s also a comparison between BNB, and the OKB and KCS tokens. Furthermore, here, BNB also comes out on top.
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