Wrapped BNB

WBNB

WBNB is a DeFi-compatible version of BNB. BNB is the native currency of the BNB chain used for gas fees and security.

Risk Rating
Best
$578.10
0.56%
Summary
What we like
WBNB is a wrapped version of BNB that enables it to be more easily used within DeFi. BNB is the native blockchain token used to pay for transaction fees on the BNB Chain. A portion of fees from network operations are burned to reduce the supply and increase BNB scarcity for token holders.
What we like less
There are centralization concerns as the active validator set for BNB Chain consists of only 21 trusted institutions.
What it means for you
BNB has quickly risen to a top alternative Layer-1 token with intrinsic value given its utility to pay for transaction fees, solid network usage, and strong deflationary tokenomics.
Information
Blockchain
  • BNB Chain
Info
Key Metrics
  • Fully Diluted Valluation: $913.2M
  • Total Supply: 1,577,897
  • Volume (24H): $186.1M
  • ATH: $687.22 (05/10/2021)
  • ATL: $23.60 (09/24/2020)
Risk Assessment
Best
Asset Strength

Wrapped is a large-cap asset that represents the protocol`s native governance or utility token. This asset depends on a centralized entity for custody services.

Asset Tokenomics

Wrapped has a fixed supply. BNB is "wrapped" to make it compatible with DeFi smart contracts. 1 Wrapped BNB is always equal to 1 BNB.

Asset Volatility

Wrapped BNB is highly correlated to the overall market.

Dependencies

Wrapped BNB has no dependencies.

Things to know about WBNB

What is BNB used for?

The BNB token has two main use cases: to pay for gas fees on the network and for staking to secure the blockchain. The BNB Chain requires a small amount of BNB to execute transactions on the blockchain. Validators on the network are required to stake BNB to process network activity and earn transaction fees (paid in BNB).

BNB tokenomics

The total supply of BNB is capped at 200M tokens. The Binance exchange pre-mined the 200M BNB tokens prior to public launch. Founders received 80M BNB (40% of supply) vested over four years; beginning in 2019, these tokens are burnt through quarterly burns and will remain illiquid until fully burnt. Investors received 20M BNB (10%) with no vesting or lock-up restrictions. The public sale distributed 100M BNB (50%) with the funds used for branding and marketing and platform upgrades.

How does BNB accrue value?

BNB is intended to be a deflationary asset as Binance committed to using 20% of the centralized exchange's quarterly profits to burn BNB. Binance will continue to burn BNB equivalent to 20% of its quarterly profits until the circulating token supply reaches 100M BNB. In addition, a fixed portion of fees paid to execute transactions on the BNB Chain are burned (currently 10% but adjustable via governance), reducing the supply, and increasing the BNB token's scarcity.