The Binance team, behind the world's largest cryptocurrency exchange as of September 2024, pioneered a groundbreaking business model for its native token, Binance Coin (BNB). By offering users trading fee discounts, staking rewards, and ecosystem incentives, Binance set a benchmark later adopted by competitors. Today, BNB remains the leading exchange-based cryptocurrency by market capitalization.
Early Growth Phase (2017–2021)
Launched in July 2017 as an ERC-20 token on Ethereum, BNB capitalized on the crypto bull run, surging from $0.10 to $22.30 (a 22,300% increase) by January 2018. Post-correction, it stabilized at $8.09 before climbing to $17.07 in August 2018.
Key milestones:
- June 2019: BNB hit a new all-time high (ATH) of $37.17 after migrating to BNB Chain, Binance’s proprietary blockchain using the BEP-2 token standard.
- March 2020: Dropped to $9.36 during the pandemic-induced market crash.
- February 2021: Reached $294.60 amid the launch of BNB Smart Chain, an EVM-compatible network leveraging Proof-of-Stake (PoS).
👉 Discover how BNB Smart Chain outperforms Ethereum in scalability
Market Dominance and Corrections (2021–2024)
By May 2021, BNB Smart Chain’s Total Value Locked (TVL) skyrocketed to $22.35 billion, propelling BNB’s price to $634. In November 2021, it peaked at $654 during the broader crypto rally.
Post-2021 crash, BNB bottomed at $206 in October 2023 but rebounded sharply with the **Bitcoin ETF approval** in January 2024, setting a new ATH at $720. As of September 2024:
- Price: $507
- Market Cap: $74 billion (4th largest cryptocurrency)
- TVL: $4.1 billion (Top 4 DeFi ecosystem)
Future Prospects
BNB’s ecosystem continues expanding:
- August 2024: Lido Finance integrated BNB Smart Chain, enabling cross-chain transfers of wstETH tokens.
- Developer Adoption: Over 1,400 dApps now run on BNB Smart Chain, rivaling Ethereum’s infrastructure.
FAQ
Q: Why did BNB outperform Ethereum in 2024?
A: Lower fees, faster transactions, and strategic exchange integrations drove adoption.
Q: Is BNB a good long-term investment?
A: Its utility in Binance’s ecosystem and DeFi growth position it strongly, though market volatility persists.
Q: How does BNB Smart Chain differ from Ethereum?
A: It uses PoS (not PoW) and offers EVM compatibility with reduced gas costs.
👉 Explore BNB staking opportunities for passive income
Note: Data reflects market conditions as of September 2024.
### Keyword Integration
- **Primary Keywords**: Binance Coin, BNB price, Ethereum competitor, BNB Smart Chain, DeFi, cryptocurrency exchange.
- **Secondary Keywords**: ERC-20, PoS, TVL, altcoin, staking.
### SEO Optimization
- **Headings**: Hierarchical Markdown tags (`#`, `##`) for readability.
- **Anchor Text**: Two contextual links to [OKX](https://www.okx.com/join/BLOCKSTAR) for engagement.