The following analysis will explore how the number one utility token in the cryptocurrency industry, Binance Coin (BNB), is providing value to its users and the impact that this could have on its market value.
Utility tokens are gaining popularity as some of the top cryptocurrency exchanges in the space are employing them to provide value to their users while funding the development of different projects. Today, even the Merriam-Webster dictionary, one of the most prestigious English dictionaries in the US, has a definition for these types of digital assets.
According to the Merriam-Webster dictionary:
“A utility token is a digital token of cryptocurrency that is issued in order to fund the development of the cryptocurrency and that can be later used to purchase a good or service offered by the issuer of the cryptocurrency.”
At a time where most ICOs failed, utility tokens rose to provide real-world use cases that create intrinsic value in them. The sustained growth of a company drives demand for its native cryptocurrency as its utility expands, and it becomes widely accepted. This is the motto that the world’s largest cryptocurrency exchange by trading volume, Binance, stands by since it introduced Binance Coin in July 2017.
Binance Coin (BNB)
Binance Coin was initially created to pay for trading fees at a discounted rate on the cryptocurrency exchange. But, throughout the years, BNB has developed new functions and use cases within the Binance ecosystem and beyond.
According to a report by SIMETRI:
“BNB’s utility has increased substantially. The coin finds more acceptance for payments and has been integrated by other companies in financial services such as lending. The largest increases have come from within the Binance ecosystem,