Binance Announces Staking – What this means for the BNB Price!

The world’s leading digital assets exchange Binance announced staking support for its native BNB tokens on Aug 12. The users can now stake their tokens at Binance Smart Chain testnet. It was also announced that the early stakers have a chance to win $3000 in BNB tokens.

This news confirms the earlier rumors that the Binance Smart Chain – a smart contracts platform will support BNB tokens staking. The smart chain will function alongside Binance Chain (used for asset issuance) and Binance DEX (decentralized exchange).

Binance (BNB) Staking Can Increase Token Demand And Drive Price

Once the Binance Smart Chain launches and the full roll-out of the staking mechanism is complete, the demand of the BNB token could find new heights. The staking mechanisms are known to reduce circulating supply, by locking in tokens from users interested in passive income. This is further compounded by the significant quarterly BNB token burns from Binance.

Binance Coin (BNB) Price History  - CoinGecko
Binance Coin (BNB) – CoinGecko

The BNB tokens have a phenomenal record when it comes to ROIs. It is a result of having proper use cases within the vast Binance ecosystem and the fact that it is currently the leading digital assets exchange. Since its launch in 2017, the price has gone from $0.04 to $21 (all time high at $39) – a 538x increase! It has served as a solid long term investment for the most part.

Binance Token Burn Record
Binance Token Burn Record

About Binance Smart Chain

Binance announced the launch of a Binance Smart Chain on Apr 17, alongside the existing Binance Chain and Binance DEX. The new blockchain would have the ability to implement programmable smart contracts, interoperability with Ethereum and other characteristics of the Ethereum Virtual Machine (EVM). It has been integrated with the Chainlink decentralized data oracles.

The Binance Smart Chain will be a sovereign, cross compatible, low fees and high performance blockchain. It will feature on-chain governance via staking feature, relying on 21 validators providing transaction validation and decentralization. It will provide another use case for the native BNB tokens and reduce its circulating supply, since people will lock it for the staking mechanism.

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binance bnb price
binance bnb price© Cryptoticker
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