How Does BNB Compare To Other Cryptocurrencies?
PAGE
By PAGE Editor
Binance Coin (BNB) is the native cryptocurrency of the Binance ecosystem, which includes the Binance exchange and the BNB Smart Chain. It was originally issued as an ERC-20 token running on the Ethereum network in 2017 but was subsequently moved to Binance’s own blockchain network. The ERC-20 BNB tokens were swapped with BEP-2 BNB on a 1:1 ratio. Binance Coin can be traded - bought, sold, or held - on various platforms, subject to the specific rules and limitations of each exchange. The BNB price is heavily influenced by Binance’s reputation and performance.
Binance Coin can be used to pay for goods and services within and outside of the Binance Smart Chain. Other than this, it offers a range of useful functions, including trading fee discounts when paying in BNB on the Binance exchange, exclusive token sales, and access to decentralized finance (DeFi) gaming, decentralized applications (dApps), and more. Whereas many cryptocurrencies aim for similar goals, Binance Coin’s singular position, closely tied to Binance’s ecosystem, sets it apart. Let’s dive into what makes BNB distinct.
Consensus Mechanism
Although the BNB Smart Chain aims for decentralization, it deploys a hybrid Proof of Stake Authority (PoSA) consensus mechanism that facilitates faster block times and reduced transaction costs at the expense of decentralization. The preference of users who possess a substantial number of tokens creates a system that prevents users with low amounts of staked assets from ever being selected as validators. Put simply, PoSA gives a central authority complete control over adding and removing validators from the network.
Transaction Speed
A faster transaction speed translates into lower payments, higher comfort, and reduced delay. The Lorentz and Maxwell hardforks have enabled the BNB Smart Chain to reach 100 million gas per second throughput and a 750ms block time. More precisely, 75 million transactions are processed every 750 milliseconds, which reshapes user experience and developer potential across DeFi, gaming, and emerging Web3 cases, where frequent, low-cost transactions are paramount.
The Lorentz hardfork, implemented in April 2025, transformed the BNB Smart Chain into a lightning-fast, AI-ready platform. It reduced block times from 3 seconds to 1.5 seconds, and introduced smarter validator communications and a private mesh to maintain tight synchronization, especially as speeds increased. Conversely, the Maxwell hardfork, launched in June 2025, refined peer-to-peer messaging and bulk block syncing protocols, making validator communications even more efficient. The upgrade was tailored for AI-first applications that require real-time data handling.
BNB fees vary depending on the type of transaction and network conditions. Trading fees on Binance are a standard 0.1% for makers (i.e., those who create buy/sell orders that go on the order book) and takers (i.e., those who are willing to place trades via market orders that are executed immediately). Attention must be paid to the fact that both makers and takers are participants in the market, not producers of cryptocurrency.
Utility And Ecosystem Integration
Binance Coin was created as a utility token and a blockchain gas token, meaning it has a multifaceted utility profile that is hardly matched by other cryptocurrencies. The applications of BNB include:
Trading fee discounts: Binance offers a 25% discount on spot and margin trading fees when you pay with BNB and a 10% discount on futures trading fees.
Token sales and fundraising: BNB holders have exclusive access to Binance Launchpad token sales and yield farming opportunities, redeeming their pending rewards at any time.
DeFi and NFT use: DeFi protocols, dApps, non-fungible tokens (NFTs), and blockchain games use BNB for gas fees.
Staking rewards: Validators and delegators are compensated with BNB tokens and can even use the Binance Coin as collateral for loans on certain platforms.
Payments: There are apps that let users split bills and pay friends and family through BNB. Binance Coin is increasingly accepted by various merchants as payment, including Monetha and HTC.
Supply And Tokenomics
BNB emerged with a total supply of 200 million coins. Fifty percent of the overall token supply (approximately 100 million) was offered to the enthusiasts and supporters of the initiative during an initial coin offering (ICO) in 2017. Forty percent (roughly 80 million coins) was dispersed among various project participants, including angel investors and the Binance founding team. The BNB tokens were sold for 15 cents each. To safeguard assets, it’s best to use a hardware wallet, as it provides enhanced protection against online threats.
Binance conducts periodic token burns to reduce the supply of BNB and increase the cryptocurrency’s long-term value for its holders. Coin burns have destroyed over 60 million BNB until now, targeting 100 million coins to drive scarcity. Regulators could perceive rapid, artificial supply reduction less favorably than Binance’s consistent, algorithmic deflation model established since its inception. If not supported by growth adoption and use case maturation, BNB can experience rough crashes.
Market Position And Adoption
BNB ranks among the world’s largest cryptocurrencies by market capitalization owing to its dual role as an exchange and utility token. The current ranking is #5, with a live market capitalization of $114.56 billion and a 24-hour trading volume of $3.03 billion. CEA Industries and 10X Capital have recently announced their intention of establishing a publicly listed Binance Coin treasury company, opening the doors for traditional investors to participate transparently.
Windtree Therapeutics is also planning to increase its BNB holdings. It will establish an equity line of credit worth $500 million to support its strategy of acquiring Binance Coin, with 99 percent of the funds dedicated to fulfilling this goal. When established corporations integrate BNB, it demonstrates to the broader market that the asset is serious and viable, not just a niche or speculative investment. This reduces fear, uncertainty, and doubt for individual investors and other businesses.
Conclusion
Binance Coin stands out for its low transaction fees, high speed, and deep integration within the Binance ecosystem, making it a practical option for active traders and users of dApps on the Binance Smart Chain. The capped supply with ongoing burns makes BNB deflationary, which fosters a sense of security and long-term value appreciation. Still, there are questions about decentralization, a core principle of any cryptocurrency. BNB is subject to significant price swings, which can be risky for long-term holders.
HOW DO YOU FEEL ABOUT FASHION?
COMMENT OR TAKE OUR PAGE READER SURVEY
Featured
Tap to read…