Binance's native token BNB has emerged as one of the top-performing cryptocurrencies, designed to cut trading fees initially. It has evolved into a fundamental element of its independent blockchain ecosystem. Find out why BNB is gaining significant traction in 2025 and its potential to revolutionize the crypto landscape ahead.
BNB (Binance Coin) is the native token of the Binance exchange platform, created in July 2017. Today, it ranks 5th in the cryptocurrency market capitalization ranking, with a valuation exceeding $100 billion.
Originally, BNB was designed to reduce trading fees on Binance, but its utility has expanded considerably. It now allows users to pay fees on the Binance Smart Chain, purchase NFTs, take out loans, and participate in ICOs via the Binance Launchpad.
At its creation, 200 million BNB tokens were issued, distributed among key investors (20 million), contributors (80 million), and ICO participants (100 million). Initially created on Ethereum as an ERC-20 token, BNB migrated to its own blockchain in 2019, becoming a BEP2 token on the Binance Chain, which later evolved into the BNB Chain.
Unlike Bitcoin or Ethereum, BNB doesn’t use traditional protocols like proof of work or proof of stake. Its consensus is based on the Byzantine Fault Tolerance (BFT) method, with validators earning BNB by verifying blocks, enabling faster and less energy-intensive transactions.
A distinctive feature of BNB is its “coin burn” program. Binance has committed to regularly buying back and burning tokens, reducing the total supply to eventually reach 100 million. This strategy aims to increase scarcity and potentially the value of the token. Currently, the maximum supply is around 149 million tokens.
BNB’s history is closely tied to that of Binance, launched in July 2017 by Changpeng Zhao (CZ) after an ICO that raised $15 million. BNB was initially an ERC-20 token on Ethereum, offering trading fee discounts of up to 50% on the platform.
Between 2017 and early 2021, BNB’s price generally fluctuated between $5 and $32. A major turning point came in April 2019 with the launch of the Binance Chain and the migration of BNB tokens to the BEP-2 standard. This transition marked Binance’s commitment to developing a true blockchain ecosystem.
The year 2020 saw the launch of the Binance Smart Chain (BSC), featuring smart contract functionality compatible with the Ethereum Virtual Machine. This innovation allowed BNB to integrate into the rapidly expanding decentralized finance universe.
It was in 2021 that BNB experienced its explosion, rising from about $31 in January to over $650 in May, propelling BNB among the world’s most valuable cryptocurrencies. In 2022, despite a bear market, BNB demonstrated remarkable resilience as Binance restructured its brand, grouping its blockchains under the name “BNB Chain”.
Late 2023 marked a turning point with CZ’s departure following an agreement with U.S. authorities. Despite this major change, BNB continued to thrive, reaching a new all-time high of $793 in December 2024.
Behind BNB is Changpeng Zhao, universally known by his initials CZ. Born in China in 1977, he emigrated to Canada at age 12. After studying computer science at McGill University, he worked for the Tokyo Stock Exchange and then Bloomberg Tradebook, developing high-frequency trading systems.
His encounter with Bitcoin in 2013 marked a decisive turning point. Convinced of its potential, he sold his apartment to invest in the cryptocurrency when it was worth only about $600. Before founding Binance, CZ gained experience in the blockchain ecosystem, notably at OKCoin and with his own company, Fusion Systems.
In 2017, he launched Binance after raising $15 million in an ICO. The name “Binance” is a blend of “binary” and “finance,” reflecting his vision of convergence between traditional finance and blockchain technology. Success was swift: in less than 180 days, Binance became the world’s largest cryptocurrency exchange platform.
In November 2023, following legal proceedings in the United States regarding violations of anti-money laundering laws, CZ reached an agreement with U.S. authorities. He pleaded guilty and resigned as CEO, while Binance agreed to pay a record fine of $4.3 billion.
Despite this personal setback, CZ’s legacy in the cryptocurrency industry remains considerable. He transformed Binance from a mere idea into a global giant and made BNB one of the world’s most valuable cryptocurrencies.
BNB distinguishes itself through its versatility and concrete utility. Its primary function is reducing trading fees on Binance, offering up to 25% discount to users who pay their fees in BNB. This saving can represent considerable amounts for active traders.
Beyond this initial function, BNB serves as a payment method for various operations within the Binance ecosystem: listing fees, participation in token sales via the Binance Launchpad, or purchasing NFTs on the Binance marketplace.
With the advent of the Binance Smart Chain in 2020, BNB’s role has expanded considerably. It became the native token of this blockchain, used to pay transaction fees (gas fees) for all operations performed on this network. This function is crucial as BSC hosts thousands of decentralized applications, DeFi protocols, and blockchain games.
BNB also plays a role in the governance of the BNB Chain. Holders can participate in decisions regarding the network’s evolution, with voting power proportional to their token quantity.
In the decentralized finance realm, BNB can be used as collateral to borrow other cryptocurrencies, staked to generate passive yields, or provided to liquidity pools. The Binance Launchpool program allows holders to stake their BNB to receive newly listed tokens.
The BNB network, known as BNB Chain, has evolved considerably since its creation. Initially an ERC-20 token on Ethereum, BNB migrated in 2019 to the Binance Chain, then evolved with the launch of the Binance Smart Chain (BSC) in 2020. In 2022, these blockchains were unified under the name “BNB Chain”.
The current architecture comprises two main chains: the BNB Beacon Chain (formerly Binance Chain) which handles governance and staking, and the BNB Smart Chain which supports smart contracts and decentralized applications. This architecture optimizes performance by separating functionalities on interconnected chains.
The consensus mechanism used is Proof of Staked Authority (PoSA), combining elements of Proof of Stake and Proof of Authority. In this system, 21 active validators are selected based on their staked BNB and reputation. They take turns producing blocks in a predetermined order, with a block time of approximately 3 seconds.
Interoperability is ensured through bridges like the Binance Bridge, allowing assets to be transferred between the BNB Chain and other blockchains such as Ethereum or Solana. These bridges facilitate the conversion of tokens from one blockchain to another, typically in the form of “wrapped” tokens.
In terms of performance, the BNB Chain distinguishes itself by its ability to process several hundred transactions per second with very low fees, offering a smooth user experience even during periods of high activity.
The Binance Smart Chain (BSC), renamed BNB Smart Chain, represents one of the major innovations of the Binance ecosystem. Launched in September 2020, this blockchain offers a performant and economical alternative to Ethereum, while maintaining compatibility with its tools and applications.
The genesis of BSC addresses a concrete need: to overcome the absence of smart contract functionalities on the original Binance Chain. Facing the explosion of DeFi on Ethereum and the resulting congestion and high fees, Binance designed BSC as a complementary solution.
Its most distinctive feature is its compatibility with the Ethereum Virtual Machine (EVM). This compatibility allows developers to easily port their applications from Ethereum to BSC with minimal modifications, reusing their existing code and Solidity skills.
BSC outperforms Ethereum in performance with a block time of approximately 3 seconds (versus 13 for Ethereum) and fees generally under one dollar. These advantages have attracted numerous projects like PancakeSwap, Venus Protocol, or Alpaca Finance, creating a complete DeFi ecosystem.
The main token standard on BSC is BEP-20, equivalent to Ethereum’s ERC-20 standard. Other standards like BEP-721 (for NFTs) and BEP-1155 (for multi-function tokens) expand creative possibilities for developers.
Despite its successes, BSC faces criticism regarding its level of decentralization. With only 21 active validators, it is significantly more centralized than blockchains like Ethereum or Bitcoin. This centralization certainly allows for superior performance but raises questions about its resistance to censorship.
The BNB Smart Chain uses a consensus algorithm called Proof of Staked Authority (PoSA), an ingenious fusion between Proof of Stake and Proof of Authority. This hybrid approach addresses the needs for speed, energy efficiency, and security, while maintaining a certain degree of decentralization.
Unlike Bitcoin which uses the energy-intensive Proof of Work with confirmation times of about 10 minutes, BSC’s PoSA selects a limited set of validators (21 active) who must stake a significant amount of BNB and maintain robust technical infrastructure. This dual criterion aims to ensure that only serious actors participate in transaction validation.
In this system, validators take turns producing blocks in a predetermined order, each having about 3 seconds to submit a block. If a validator fails, the turn passes to the next one. To become a validator, a candidate must stake several thousand BNB (representing several million dollars) and have high-performance infrastructure.
Security rests on several pillars: the high stake requirement creates an economic deterrent against malicious behavior, the validator rotation system complicates coordinated attacks, and a “slashing” mechanism automatically penalizes validators who break protocol rules.
Despite its performance advantages, PoSA has limitations in terms of decentralization. With only 21 active validators, BSC is significantly more centralized than blockchains like Ethereum or Bitcoin, raising questions about its resistance to censorship and regulatory pressures.
The security of the BNB Chain network constitutes a fundamental aspect of its architecture. The Proof of Staked Authority (PoSA) consensus mechanism forms the first line of defense, requiring validators to stake a substantial amount of BNB, thus creating a strong economic deterrent against malicious behavior.
The slashing system reinforces this security by automatically punishing validators who break protocol rules. The network architecture is robust with geographically distributed nodes, reducing risks related to localized failures. Binance maintains rigorous development practices with thorough security audits and a bug bounty program.
Despite these measures, the BNB Chain has experienced several security incidents. The most notable occurred in October 2022, when a hacker exploited a vulnerability in the BSC Token Hub, fraudulently creating 2 million BNB (approximately $570 million). Binance’s reaction was swift but controversial: the team contacted validators to temporarily suspend the blockchain, limiting actual losses to about $100-110 million.
This ability to “stop” the blockchain raised important questions about the network’s level of centralization. Following this incident, Binance implemented several corrective measures: fixing the vulnerability, additional audits, strengthening the white hat reward program, and introducing an on-chain governance mechanism to improve transparency.
In 2023, according to AvengerDAO, BSC experienced 414 security incidents, representing a 44% increase compared to 2022. These incidents include smart contract exploits, Ponzi schemes, and phishing attacks. “Sandwich” attacks were among the most common, framing a user’s transaction between two quick transactions by the attacker to generate profit.
Let’s now discuss the advantages and disadvantages of Binance’s BNB.
BNB presents several significant advantages that explain its growing popularity :
Despite its numerous strengths, BNB presents several disadvantages that should be considered :
BNB has experienced a spectacular evolution since its launch in 2017. Initially sold at $0.10 during the ICO, it crossed the $600 mark in 2021 and reached an all-time high of $793 in December 2024, demonstrating exceptional growth despite volatile market cycles.
Unlike other cryptocurrencies, BNB has shown remarkable resilience during the 2022-2023 bear market. While Bitcoin and Ethereum lost more than 70% of their value, BNB limited its correction to about 60%, testifying to its robustness and fundamental utility beyond mere speculation.
Several factors influence BNB’s price. The quarterly burn program progressively reduces the total supply, creating structural upward pressure. The growing adoption of the BNB Chain by developers and users generates organic demand for the token. Regulatory developments, such as the 2024 U.S. court decision establishing that BNB is not a security, also have a significant impact.
Predictions for 2025-2026 vary considerably among analysts. The most optimistic envision BNB exceeding $1,500 if the crypto market experiences a new major bull cycle, while more conservative projections forecast a range of $800-1,000. These estimates are based on the assumption of continued adoption of the BNB Chain and successful development of its ecosystem.
In the longer term (2027-2030), some analysts mention price targets between $2,000 and $5,000, although these projections are highly speculative. Achieving such targets would depend on factors like institutional adoption, favorable regulatory evolution, and the BNB Chain’s ability to maintain its relevance in the face of growing competition.
The history of BNB is marked by key events that have shaped its evolution and value. July 2017 marks the birth of BNB with Binance’s ICO raising $15 million by selling 100 million tokens at $0.10 each. A few months later, in December 2017, BNB experienced its first significant rise, reaching $12 in the wake of the crypto bull run.
Buying BNB has become relatively simple thanks to its popularity and availability on numerous platforms. The most direct method is to use Binance, BNB’s original platform. After creating an account and completing identity verification (KYC), you can deposit euros via bank transfer or credit card, then buy BNB directly with these funds.
Other reputable exchange platforms also offer BNB, including Bitget, Coinbase, Kraken, or KuCoin. These alternatives may be preferable depending on your geographic location or preferences regarding user interface and fees. Compare trading and withdrawal fees before choosing your platform.
For more experienced investors, decentralized platforms (DEXs) like PancakeSwap on the BNB Chain or Uniswap on Ethereum (via wrapped BNB) offer a KYC-free alternative. This method, however, requires already owning cryptocurrencies and being familiar with non-custodial wallets like MetaMask.
Whatever method you choose, secure your account with two-factor authentication (2FA) and consider transferring your BNB to a personal wallet for long-term storage. Be wary of scams and always verify the URL of sites you visit to avoid phishing.
Securely storing your BNB is essential to protect your investment. Several options are available, each presenting a different balance between security and accessibility. Exchange platform wallets like Binance or Bitget offer a simple but less secure solution, as you don’t control your private keys. They are suitable for active trading or small amounts.
Software wallets constitute a good compromise. For mobile, Trust Wallet (owned by Binance) natively supports BNB and the BNB Chain ecosystem. MetaMask can be configured for the BNB Smart Chain and remains popular for interacting with DApps. For computers, Exodus and Atomic Wallet offer elegant interfaces and support BNB. These solutions give you control of your keys but depend on your device’s security.
For maximum security, hardware wallets like Ledger Nano X/S Plus, Trezor Model T, or SafePal S1 (backed by Binance) store your private keys offline. Although more expensive and less convenient for frequent transactions, they are highly recommended for significant amounts and long-term storage. Whatever method you choose, always back up your recovery phrase in a safe place and enable two-factor authentication when possible.
Obtaining BNB for free is possible through several legitimate methods, although they generally require a time investment. Binance reward programs offer interesting opportunities: “Learn & Earn” allows you to earn cryptocurrencies by taking courses and answering quizzes, while the referral program pays you commissions on the trading fees of people you invite.
BNB faucets distribute tiny amounts of cryptocurrencies in exchange for solving captchas or watching advertisements. Platforms like Cointiply or Idle-Empire allow you to earn cryptocurrencies by performing micro-tasks such as answering surveys or testing applications. These methods generate modest amounts but constitute a risk-free introduction to the ecosystem.
Play-to-Earn games on the BNB Chain like Mobox, CryptoBlades, or BinaryX allow you to earn tokens by playing, which can then be exchanged for BNB. For the more technical, participating in bug bounty programs from Binance or hackathons can generate substantial rewards. Whatever method you choose, evaluate whether the time invested is proportional to the rewards obtained and remain vigilant against scams.
The legality of BNB varies considerably across jurisdictions and is constantly evolving. In most Western countries like the United States, European Union, United Kingdom, Canada, Australia, and Switzerland, BNB is generally considered legal, although subject to specific regulations concerning cryptocurrencies.
A major advancement occurred in July 2024, when a U.S. federal court ruled that BNB does not constitute a security. This decision lifted a significant regulatory uncertainty that weighed on its future in the United States. In the European Union, BNB is legal but subject to the MiCA (Markets in Crypto-Assets) regulation that came into effect in 2024.
The situation is more complex in Asia : BNB is legal in Singapore and Japan (where Binance has obtained licenses), but faces severe restrictions in China where cryptocurrency exchanges are banned. In most jurisdictions where cryptocurrencies are legal, transactions involving BNB are subject to taxation, typically in the form of capital gains tax. It is crucial for holders to comply with local tax obligations.
The distribution of BNB shows a notable concentration among a few major players. Unsurprisingly, Binance itself ranks among the largest holders. According to transparency data published in late 2022, the company held approximately 58 million BNB, representing nearly 35% of the total supply in circulation. These holdings are divided between operational reserves, tokens intended for incentive programs, and tokens held on behalf of users.
Changpeng Zhao (CZ), Binance’s founder, is known to personally hold a substantial amount of BNB, estimated between 1% and 5% of the total supply according to various on-chain analyses. Even after his departure from Binance’s leadership in November 2023, he likely retains a significant portion of his holdings.
Outside of Binance and its founders, several categories of actors hold significant amounts of BNB. The 100 largest “whale” addresses collectively hold approximately 25-30% of the total supply. Exchange platforms other than Binance collectively own 5-10% of the tokens. The 21 validators of the BNB Chain immobilize approximately 3-5% of the total supply as collateral. Finally, individual holders collectively represent 25-30% of the supply, with distribution generally following a Pareto curve.
BNB establishes itself in 2025 as one of the strongest cryptocurrencies in the market, combining concrete utility in the Binance ecosystem, a favorable deflationary policy, and a performant blockchain that attracts developers and users. The recent clarification of its legal status in the United States and its resilience following CZ’s departure demonstrate its maturity and growing independence.
Despite these strengths, BNB faces significant challenges: its relative centralization with only 21 validators raises legitimate questions about its resistance to censorship, while fierce competition from other blockchains like Solana or Avalanche threatens its position. The regulatory environment, though increasingly clarified, remains uncertain in many jurisdictions.
For investors, BNB presents an interesting risk/reward profile in 2025, with growth potential supported by its mature ecosystem and deflationary policy. Its integration into a functional ecosystem and excellent liquidity make it a reasonable component of a diversified crypto portfolio, provided one remains aware of the risks inherent to this asset.
Rédacteur web depuis de nombreuses années et spécialiste en SEO, Thomas a rejoint l'équipe d'InvestX dès le lancement du projet. Passionné par l'univers des cryptomonnaies et du Web3, Thomas s'est donné pour mission d'offrir un maximum de valeur aux lecteurs et de les initier au monde des blockchains, qu'il considère comme l'avenir de la société.
BNB is the native token of the Binance ecosystem, used to reduce trading fees, pay transaction costs on the BNB Chain, participate in token sales via Binance Launchpad, and access DeFi services. Its versatility and integration within a comprehensive ecosystem explain its position among the top cryptocurrencies.
The BNB Chain operates with a Proof of Staked Authority (PoSA) consensus mechanism featuring 21 validators, enabling fast (3-second) and low-cost transactions. Compatible with the Ethereum Virtual Machine, it supports the development of decentralized applications while maintaining high security standards.
BNB offers strong fundamentals such as real-world utility, a deflationary token model, and a mature ecosystem. Despite its relative centralization and reliance on Binance, it presents an appealing risk/reward profile within a diversified portfolio—especially following the clarification of its regulatory status.
Use regulated platforms like Binance or Bitget, complete identity verification, enable two-factor authentication, then purchase with fiat (e.g. euros). For maximum security, transfer your BNB to a personal wallet—ideally a hardware wallet for larger investments.
Bitcoin is a decentralized digital currency using Proof of Work, with a fixed supply of 21 million coins. BNB is a utility token tied to the Binance ecosystem, operating under Proof of Staked Authority, with a deflationary supply model and multiple use cases—but with lower decentralization.
While BNB offers advantages in terms of cost and performance, overtaking Ethereum would require matching its level of decentralization and attracting a similarly large developer community. Despite the BNB Chain’s ongoing growth, this scenario remains unlikely in the medium term.
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