Disclaimer: The datasets shared in the following article have been compiled from a set of online resources and do not reflect AMBCrypto’s own research on the subject
What does the thought of holding an exchange token mean for you? I mean, exchange tokens aren’t necessarily known for ROIs or profits or anything, right? Does the thought excite you?
Most would say – No. Does this mean BNB is not worth looking at, however? Well, it may be time to reconsider that.
Consider this – In January 2021, the price of Binance Coin (BNB) was $40. However, 2021 also saw a significant incline in BNB’s price, one that allowed it to hit $690 on the price charts. In fact, this was its highest price level in 2021.
Worth noting, however, that soon after, the latter few months of 2021 saw the wider market fall across the board. Needless to say, the same had a ripple effect on BNB’s price charts as well, with the exchange token hitting new lows.
Binance Coin (BNB) is the native token of Binance which is the largest cryptocurrency exchange in terms of market capitalization. Although BNB is not a fully decentralized coin, it can nonetheless operate flawlessly in a DeFi system.
In early January 2021, BNB was trading at $40, with a total trading volume of $413 million. Its performance continued to grow and during the cryptocurrency boom witnessed in 2021, BNB’s price significantly rose to an all-time-high (ATH) of 2021 – $690. The crypto-market, however, experienced a bloodbath in the latter few months of 2021, with major cryptocurrencies, including BNB, experiencing a significant decline.
Nevertheless, BNB also functions as a payment method and opens up more opportunities on the Binance platform, including savings, DeFi staking, and liquidity mining via the BNB vault.
It was initially used as an ERC-20 token on the Ethereum (ETH) network before being moved to the Binance network and changing its name to BEP-20.
As the Ethereum Merge has taken place, Binance has been able to manage the transition for its users in an efficient manner.
Binance Coin was initially created in 2017 as a utility token for discounted trading fees. Today, however, its use cases have grown on several cryptocurrency exchanges. BNB can be used to pay transaction fees on many Binance platforms such as Binance.com, Binance DEX, and Binance Chain, besides crypto.com and HTC. Hotel booking sites (e.g. TravelbyBit), SAAS platforms (e.g. Canva), DeFi apps (Moeda) and a large number of platforms accept BNB as a mode of payment.
BNB’s price has fallen as a result of the cryptocurrency market’s sharp bearish shift. One can also argue that the SEC’s issues with Binance took a heavy toll on the price of the altcoin. Even so, expectations remain high.
Finder.com surveyed 54 people recently, with the panel believing that the coin has promising long-term potential. The crypto’s price is expected to hit $781 in 2023. And, although BNB may not be receiving as much attention right now, it routinely ranks among the best-performing currencies in terms of ROI. It is also the fifth-largest crypto in the world.
Given everything, buying BNB must be a wise decision in the long run, right? Most analysts have positive predictions for BNB. Additionally, the bulk of long-term BNB price projections are upbeat.
Why do these projections matter?
BNB is a cryptocurrency that is native to the world’s biggest cryptocurrency exchange. It is also crucial to the Binance Smart Chain ecosystem. The latter, in fact, is one of Ethereum’s competitors, and it offers substantially higher scalability and lower transaction costs.
The steady increase in the number of traders on Binance also has a positive impact on the price of BNB. The cost of this altcoin had increased, rising from $526.94 in October 2021 to $555.34 at the start of January 2022. It is anticipated to keep expanding as trade activity on the exchange rises as Binance establishes itself as a market leader in the cryptocurrency trading industry.
Its value reached a high point, in part due to the volume of BNB used for decentralized applications (DApps), DeFi, and smart contracts after the launch of Binance Smart Chain. With 44 exciting projects, BSC is the second-largest DeFi platform at the moment. Over 620,000% have been added to the value of Binance Coin between its 2017 introduction and its 2021 peak.
The fact that the exchange has maintained a burning program since the coin’s introduction is just another reason to trust BNB. On April 15, 2021, Binance burned more than 1,099,888 BNB, equal to $595,314,380 worth of tokens. This is Binance’s 15th quarterly BNB burn, and in terms of cash, it was the biggest one yet.
In this article, we’ll quickly review the current activity of the cryptocurrency with a focus on market cap and volume. In conclusion, predictions from the most well-known analysts and platforms will be summarized together with an analysis of the Fear & Greed Index to determine market mood.
BNB’s price, volume, and everything in between
At the time of writing, BNB was trading at about $277. The price of the crypto was almost -48% lower than its price in January 2022. In fact, it saw a decline of almost 2% over the past week (YTD).
BNB’s trading volume increased by double digits over the said period. This brings the total circulating supply to 163.28 million, or about 98.89% of the total supply of 165.12 million coins. On the daily chart, BNB’s total market cap was $45.7 billion.
And as the numbers slowly go up, investors and experts have gone bullish on the token. The managing director of Digital Capital Management, Ben Ritchie, is positive about BNB and predicts that by the end of the year, the crypto will be worth $300 (which it already is, as of now). Ritchie also admitted that the viability of Binance’s exchange will determine the destiny of BNB. Going on to say that the asset has the potential to be a deflationary one, he added,
“The price of BNB also follows the demand and supply. BNB introduced a burn mechanism in every transaction fee and conducted quarterly burns, making it a deflationary asset. Since the BNB chain ecosystem continues to grow, the price may reach as high as $3,000 in 2030.”
At the time of writing, the price of Binance Coin was below the 200-day simple moving average (SMA). Since 20 January 2022, the 200-day SMA has been indicating SELL for the previous 212 days. Since 16 July 2022, when Binance Coin’s price fell below the 50-day SMA, this indicator has been indicating a SELL signal for the last 35 days.
On 3 February 2022, 197 days ago, the Bitcoin market saw its most recent Death Cross. A Golden Cross hasn’t happened in 353 days since 31 August 2021. Technical indicators predict that Binance Coin’s 200-day SMA will decline over the coming month and hit $ 327.19 by 19 September 2022. By 19 September 2022, Binance Coin’s 50-Day SMA is anticipated to reach a value of $327.18.
At the time this article was written, the contrary view was held by TradingView, with the platform flashing a “Buy” signal for BNB.
Let’s now look at what well-known platforms and analysts have to say about where they believe BNB will be in 2025 and 2030.
BNB Coin Price Prediction 2025
Changelly, for its part, is very optimistic about the fortunes of Binance Coin. It predicted that the lowest BNB price in 2025 will be $1,122.96, while its highest price will be $1,270.31.
Technologist and futurist Joseph Raczynski too has a bullish outlook. He believes Binance to be the top worldwide exchange. He said,
“While BNB is not decentralized, it still can serve a purpose for fast and cheap transactions. That has a cost though. Binance could change parameters on the token without consensus and they are far more likely to be a single point of failure.”
Crypto-exchange CoinDCX predicts that if the end of the previous year was bullish, the beginning of 2025 might likewise be positive. Thus, the price could initially reclaim its position above $2000 and continue to maintain a strong advance. Consequently, one might try to reach $2500 by the end of 2025.
So, with all these positive predictions, is there a reason to not root for BNB? Well, remember that 2025 is still more than three years from now and Binance has a lot going on with the SEC. The SEC is after Binance, accusing it of issuing BNB as an unregistered security.
However, despite this, the market is quite optimistic. The Co-founder and Vice President of MetaTope, Walker Holmes, does not believe that the SEC will significantly harm the future of BNB. He said,
“We have seen this play out with XRP, ETH, and others. CZ can present a very compelling case. I think this is a question of potential monetary penalties. However, at the time of writing, I do not think Binance is at major risk of being taken down.”
BNB Coin Price Prediction 2030
CEO of Balthazar, John Stefanidis, expressed great optimism about BNB in a study. A BNB value of $3,000 by 2030, in his opinion, is entirely doable. Due to its cutting-edge technology and adherence to international rules, BNB is well-positioned for long-term success. He also emphasized that Binance’s great UX, a strong venture team, and a great brand are all factors in BNB’s success.
Although BNB is more affordable for many investors, Desmond Marshall, the Director of Rouge Ventures and Rouge International, thinks Binance Coin might overtake Ethereum. According to him, the implementation of the limits will have the greatest impact on the performance of the crypto. Additionally, the trust that the neighbourhood has in BNB is a crucial factor in determining future growth.
Now, all these predictions are positive, but one has to be careful. We are talking about 8 years from now and it is worth taking into account the current status of the crypto-industry. The prices of BNB and Bitcoin are closely correlated. Fortunately, BNB can be burned on the Binance market, which reduces the number of tokens in circulation and could raise the price of the coin.
The profitability of BNB will be significantly influenced by technological advancements. To enhance the functionality of the blockchain, Binance has several plans to invest in cutting-edge technologies.
Now, it is not that the prediction of BNB coin is always positive. In light of the coin’s volatility and the fact that it “primarily follows the price gyrations of Bitcoin and has no real-world use,” John Hawkins, a senior lecturer at the University of Canberra, has predicted that BNB’s price will fall to $180 by the end of 2022.
It’s critical to bear in mind that cryptocurrency markets are incredibly unpredictable, making it challenging to provide long-term projections. Worth noting, however, that the F&G Index has been recovering. Ergo, better times might be ahead.