What is BNB (BNB)?
RANK #4The native token of the BNB Chain ecosystem and Binance exchange.
BNB market stats
BNB at a glance
- Ticker
- BNB
- Launched
- 2017
- Category
- Exchange token · Layer 1
- Consensus
- Proof-of-staked-authority (BNB Chain)
- Supply
- Reduced via burns (target 100M)
- Issuer
- Binance / BNB Chain
Categories: Smart Contract Platform · Exchange-based Tokens · BNB Chain Ecosystem · Centralized Exchange (CEX) Token · Layer 1 (L1) · Ethereum Ecosystem
How BNB works
BNB is the native asset of the BNB Chain ecosystem, originally launched as an exchange utility token in 2017. It is used to pay fees, access services and power applications on BNB Smart Chain, an EVM-compatible network.
BNB’s value is tied to the activity of its ecosystem and exchange, periodic token burns that reduce supply, and on-chain usage. As an exchange-linked token, it carries regulatory and centralisation considerations.
BNB powers BNB Smart Chain, an EVM-compatible blockchain that runs the same kind of smart contracts as Ethereum but with lower fees and a smaller, faster validator set (proof-of-staked-authority).
BNB is used to pay gas on the chain, to reduce trading fees on its associated exchange, and across the ecosystem’s DeFi and consumer apps.
What moves the BNB price?
- Activity and growth of the BNB Chain ecosystem and exchange.
- Quarterly token burns reducing supply.
- Regulatory developments affecting the exchange.
- Overall crypto market sentiment.
Is BNB a good investment?
BNB is closely tied to a single company and ecosystem, which concentrates both upside and risk. It is volatile and this is not financial advice.
Regulatory scrutiny of the associated exchange is a specific factor to weigh against the ecosystem’s scale and the deflationary burn.
What BNB is used for
- Paying transaction fees on BNB Smart Chain.
- Discounted trading fees on the associated exchange.
- Participating in token sales and ecosystem apps.
- Staking and DeFi across the BNB ecosystem.
BNB tokenomics and supply
BNB launched with a large initial supply that is being reduced over time through periodic “burns,” which permanently remove tokens from circulation toward a long-term target of 100 million.
This deflationary mechanism is a core part of the token’s economics, tying supply reduction to ecosystem activity.
BNB FAQ
What is BNB used for?
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BNB pays transaction fees on BNB Smart Chain, can reduce trading fees on its associated exchange, and is used across the ecosystem’s DeFi and apps.
What is the BNB burn?
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BNB uses a periodic burn mechanism that permanently removes tokens from supply, gradually reducing the total amount in circulation toward a target of 100 million.
How do I buy BNB?
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BNB is available on major exchanges and can be held in EVM-compatible wallets. Review our exchange ratings before signing up.
Is BNB decentralised?
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BNB Smart Chain is EVM-compatible but more centralised than networks like Ethereum, with a smaller validator set. Weigh that against its low fees and large ecosystem.
Is BNB a good investment?
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BNB is tied to one exchange and ecosystem, concentrating risk. It is volatile and not financial advice — weigh regulatory factors and do your own research.
This page is information, not financial advice. Prices come from CoinGecko; the text is written and checked by our desk. See our editorial policy.