With new functions, BNB usability is increasing and this might impact its price as well. A report by SIMETRI corroborates the same idea:
“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, however. BNB can also now be used on Binance DEX, as well as the company’s Launchpad and Lending services.”
Binance Coin Used for Different Services
Within the Binance community, BNB is currently the preferred coin for paying for different services on the Binance Chain. Besides, it can be used to pay for fees on Binance DEX as well as to contribute in token sales in Binance Launchpad. Importantly, users can exchange BNB tokens for fiat currencies, courtesy of Binance Lending. Binance has fiat partners worldwide.
Beyond the Binance ecosystem, Binance Coin offers utility too. The coin has entered into various strategic partnerships with various companies to enlarge its use case. For instance, TravelbyBit and Pundi X allow their customers to use BNB to pay for goods or services on their platforms. Similarly, Trip.io allows people to use the BNB token to pay for flights or book hostels. Other companies such as the freelance-based CanWork allow freelancers to be paid through the BNB token. Mobile tech companies Samsung and HTC also provide a provision for storing BNB through their in-built apps.
BNB is a Utility Token
What are utility tokens, you may ask? Well, these tokens continue to become more popular on some of the mainstream crypto exchanges where they are used to provide value to users and fund the development of different projects in those platforms.
The Merriam-Webster dictionary defines a utility token as follows:
“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.”
Against this backdrop, Binance coin (BNB) provides value to users and this could soon lead to its price growth.
Featured Image Source: Cryptovest