Another type of token that is very popular especially when it comes to Initial Coin Offerings ICOs. Utility tokens are also cryptocurrency tokens that run on the blockchain. They differ from the other type of tokens because their main purpose is for utility and use cases.
The main purpose of utility tokens is to have utility within an ecosystem. In other words, utility tokens have utility in an ecosystem and give individuals who hold these utility tokens access to services and payments within a blockchain ecosystem. Utility tokens allows holders to make payments, have access to services, pay for fees and more within an ecosystem.
Benefits of Utility Tokens
Utility tokens like every other types of tokens in cryptocurrency has its benefits. Some of the benefits of utility tokes are;
- Real use cases
- Serves as discount token on the Binance
- Run on the blockchain
- In some ecosystem, utility tokens can be used to lower transaction fees
- Some services in an ecosystem can be purchased with only utility tokens
Example – Binance Coin BNB
An example of a platform that has its own utility token is Binance. Binance is an ecosystem in the world of blockchain and cryptocurrency. They are without a doubt one of the biggest ecosystem with clearly one of the biggest exchanges in crypto.
BNB is a well-established and very popular cryptocurrency that is among the top cryptocurrencies based on marketcap. BNB is the utility token of Binance ecosystem. Binance has a large ecosystem with different aspects. One of the biggest aspects of the Binance ecosystem is the Binance blockchain and the Binance Coin BNB.
Some Key Benefits of BNB
BNB is one of the most popular utility tokens out there and since it is the utility token of Binance, it has a lot of use cases and is used across all the Binance ecosystem. Payment of transaction fees is one of the use cases of BNB on the Binance ecosystem. Also, BNB can be used to purchase various services on Binance.
BNB Statistics, Exchanges and Wallet
BNB has a marketcap of $79,942,703,925, fully diluted marketcap of $59,453,864,072, 24hr volume of $4,812,417,359, circulating supply of 165,116,760.89 BNB and a max supply of 165,116,760. BNB can be bought and traded mainly on the Binance exchange.
However, other exchanges like, FTX, Kucoin, Poloniex and Gate.io supports BNB. For BNB wallet, any wallet that supports the Binance Smart Chain can hold BNB. Wallets like Trust wallet (mobile wallet), Atomic wallet (mobile and desktop wallet) are great and secure wallets to store BNB.
