BNB blockchain exceeds expectations in reaching impressive milestones ?will this affect its value?

The cryptocurrency ecosystem has expanded considerably lately, with developers trying their best to create dApps, NFTs, and Defi applications on blockchains. These applications are expected to pierce through our traditional system and replace inefficient centralized websites. That’s why blockchain technology evolved, with different companies and developers contributing to innovation in the industry. 

BNB Chain is one of the leading technologies, powered by Ethereum and the BNB coin as a native token of exchange, whose contribution to the industry is significant. This led it to the mainstream, as BNB became the fourth-largest cryptocurrency by market cap, right behind Bitcoin, Ethereum, and USD Tether. Considering its fast expansion since 2017, we could foresee a BNB crypto price prediction of +5%. 

As the prices increase, we’re noticing upward patterns of blockchain adoption in the real world. Here’s how it can contribute to cryptocurrency adoption and better systems. 

BNB surpasses Polygon and Ethereum 

The BNB blockchain has had an impressive evolution recently. Its unique addresses exceeded those of the Polygon and Ethereum blockchains, reaching 463 million. Daily transactions increased on the network, propelling the blockchain to the top. 

The BNB Chain has numerous use cases, including decentralized and centralized features that make it the perfect tool for both worlds. For instance, some of the decentralized use cases include the following: 

• Paying transaction fees on the network; 
• Exploring over 5,000 dApps;
• Staking on BNB and earning passive income;

On the other hand, centralized use cases involve:

• Participating in exclusive token sales;
• Getting liquidity rewards;
• Borrowing crypto on the loan platform;

Moreover, you can also use BNB to book flights and hotels, make e-commerce payments, and take out loans as a financial service. 

BNB is more than a utility token 

While BNB started as a utility token on the Binance exchange, its use cases have expanded considerably. It’s now the token in the ecosystem leveraged in the Binance Smart Chain. Binance Staking and the Binance NFT marketplace are the ideal solutions for making the most of the network. 

Binance also operates regular token burns to remove some BNB from circulation to create demand and traction. The latest quarterly burn, which occurred in 2024, resulted in 2,141,487.27 BNB tokens being eliminated from circulation through the Auto-Burn mechanism developed by the BNB Chain. 

Moreover, the BNB chain is compatible with multiple other networks, facilitating transactions and data exchange. Binance Chain and Binance Smart Chain are only a few examples, but BNB can move seamlessly across networks. That’s why BNB is accepted across crypto exchanges and can be traded freely due to its exchange features.

The Binance Smart Chain accelerates crypto transfers 

The Binance ecosystem also includes the Binance Smart Chain (BSC), which improves transactions between decentralized apps and smart contracts. The feature is compatible with Ethereum, allowing the blockchain’s dApps to be compatible with the network. BSC has the following features:

• Fast transaction confirmation times in DeFi and gaming;
• Low fees compared to any other blockchain;
• Compatibility with the EVM;
• Efficient DPoS consensus mechanism;

BNB is used on the BSC to facilitate transactions, allow staking, and act as a governance token. Additionally, BNB allows liquidity provision to stack up on the blockchain for users to earn rewards. 

Still, BNB has some flaws

Despite being developed by a crypto exchange, BNB still has some disadvantages that might be solved in the future when the company acquires enough expertise and technology to address them, such as the following:

• Centralization risks due to controlled issuance;
• Market dependence from the Binance exchange;
• Market volatility due to unforeseen spikes in price;
• Competition from similar projects;
• Regulatory dangers due to lack of governmental management;

External factors determine some of these shortcomings, so the only main problem would be centralization. While some argue that decentralization isn’t possible in our world, others consider that it’s the technology of the future and should be implemented gradually at the moment, with the help of centralization. 

BNB Chain competitors

Although it surpassed Polygon and Ethereum, the BNB Chain is still highly competitive with similar blockchains. While they might not be as famous for the moment, some might provide more advantages for users. 

The first example is Solana, a blockchain based on the proof of history consensus mechanism that allows the platform to operate about 50,000 transactions per second. Solana is also one of the most sustainable networks on the market, as it’s carbon-neutral, cost-effective, and easy to access. 

Polkadot is also notable for making it easy for blockchains to interconnect. The project also builds technologies for the Web3 world, employing artificial intelligence and machine learning. Polkadot is a favorite investment for institutional bodies like JPMorgan and ICAP. 

Finally, Cardano is a PoS-based blockchain whose purposes include dwelling in the crypto world through peer-reviewed academic research. Cardano is the biggest Ethereum competitor as it’s better than it is on any level, except in terms of popularity. 

What is the BNB price influenced by? 

Price influencers on BNB are similar to those on any other cryptocurrency, including supply and demand, media coverage, and volatility. However, since it’s owned by a centralized company, prices are also affected by its brand image. Any lawsuit can cause prices to fall considerably despite its overall benefits for users. 

Although price predictions show a significant upward dynamic of the BNB price, we should consider the moment in which BNB will fall for various reasons. For example, prices might rise after each quarterly burn, but they’ll go back to normal as time passes. Overall, it’s best for investors not to be ruled by FOMO and make correct investment choices by diversifying their portfolios and approaching long-term investment strategies.

What do you think about BNB? 

BNB is the governance token on the BNB Smart Chain, a blockchain developed by Binance. Its use cases have expanded from being a means of exchange to allowing users to explore the numerous dApps on the platform. The BNB Smart Chain is also a significant competitor to other blockchains as it operates between networks and is safe, fast, and cheap.