Since the discovery of crypto trading, cryptocurrency exchanges have become very popular. Moreover, some of them create tokens and conditions for them to boost the usage of crypto in general and a specific exchange token. This concept is applied by Binance, the most well-known cryptocurrency exchange. Despite wide usability, the asset got affected by the bearish trends on the market this year, which don’t seem to let the crypto market go. Read our BNB token price prediction to understand what is happening with the price of the asset.
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Table of Contents
Binance Coin Fundamental Analysis
Binance Coin is a native token of the Binance exchange. It is used to pay fees on the exchange and trade in over 50 cryptocurrency pairs. The entire ecosystem is designed in a way to support a variety of utilities like trading fees, exchanges, fees, listings, etc. By May 2020 the token became the fourth largest one by market capitalization.
The coin was released in June 2017 during the Initial Coin Offering, which had the goal of attracting investors to the upcoming Binance Exchange launch. Initially, the BNB token was released under the ERC-20 standard and was not available for mining, but on April 18 2019 the mainnet of the Binance Smart Chain was launched and all the tokens were moved there in 5 days.
The ICO had terms according to which the 50% of the tokens were distributed among the investors, the team got 40%, and the venture investors received 10%. ICO helped to raise $15 million with investments coming mainly from contributors from China. 50% of the money went to advertising and brand promotion, 35% was allocated for platform development, modernization and security, and the remaining 15% was left for the reserve fund.
The project team considered that the BNB token will be the object of inflation while creating the White Paper. To regulate it, every three months the company puts 20% of its income aside for the subsequent redemption of coins and their burning. According to the plan, only half of the initially issued volume will remain.
The Binance Smart Chain utilizes a Proof-of-Stake Consensus mechanism. In one day there can be only 21 stakers. The system is more centralized than Ethereum, though it’s faster and cheaper.
Binance also launched its own start-up Binance Launchpad, which publishes numerous projects looking for investors. The exchange leads the initial sale of tokens by those projects. Anyone who has BNB tokens can take a part in the IEO, thus provoking the demand for the Binance coin.
As a cryptocurrency, BNB is used to be a trading asset and also to be used to reduce fees. Users can pay the trading fee, exchange fee, listing fee, etc. For paying fees with BNB the users get discounts, the size of which depends on the time spent using BNB for the transaction fees. For example, first-year users of the Binance exchange can benefit from 50% off the fees.
The total supply of the BNB token is 200 million, and more tokens can not be minted. The tokens are burnt all the time, or precisely, a certain part of the transaction is burnt whenever a new block is validated. But most of the burning is done on a quarterly basis. There is a formula based on BNB price and the total number of blocks so far validated in the chain. For example, in the first quarterly burn of 2022 over 1.8 billion BNB tokens were burned.
Binance Coin Live Price Chart
In October 2021, when most of the altcoins were going bullish, the BNB coin was also gaining value. On October 28 the price started to grow from $448 and reached $650 by November 8, missing its all-time high just by a little bit. Just like other assets, the BNB token couldn’t maintain a high price level for a long time, and after one week the price started to decline. On November 19 the price dropped to $531 but then recovered to go back to $639.
Till the beginning of November, the price was struggling to keep the support level, but after December 3 the value of BNB collapsed and was falling till the middle of the month when the BNB coin was trading for $528. Then the price stabilized around $530 for a few days, making an attempt to establish an uptrend at the end of the month reaching $568, and in the first days of 2022 it was declining. On January 9 the price reached $438, then there was a short bullish period that took BNB almost to $500, but after the middle of the month, the price of the Binance token collapsed again.
During the last week of January, the BNB token was traded for around $380, then at the beginning of February, it jumped up to $419, slightly bouncing there until the price dropped again at the end of the month. At the beginning of March when the crypto market was struggling, the price of BNB jumped to $409 and then returned to the previous level.
From March 16 the BNB token went up together with the other assets of the crypto market as the tendencies became more positive. By the 5th of April, the price of BNB reached $450, but then established a downtrend that lasted for a month. Before the serious hit of the crypto bears the BNB token was traded for $379, but at the beginning of June, BNB collapsed with the rest of the crypto industry. The price of BNB dipped to $269 and then recovered to $312 in the end of the month.
On June 11 the market was experiencing the outcomes of the massive crypto sell-off that caused all the main tokens to lose in value. The price of BNB dropped to $222 and then decreased even more going down to $196. For the next month, the token was struggling to return any value bouncing between $218 and $240, but with the signs of a bull effect the price of BNB started to grow. By the middle of August, it reached $323 but then dropped to $283. Until early September the token was going down, but after it reached $276, the price jumped to $296. For the next 1.5 months, the price of BNB stayed bounced between $270 and $294 being slightly bearish. The experts don’t foresee a change in the situation in the near future.
Binance Coin Technical Analysis
Binance Coin technical analysis shows that from mid-May until mid-July 2021, BNB’s price has been following a descending triangle pattern. At its end, BNB’s price went through a textbook bullish breakout and is expected to retest the nearest resistance (~$360–$370) around mid-August. This is supported by another bullish sign — in the first half of August BNB’s price has climbed above the moving average with good trading volume. So, if the trend holds after Binance Coin’s price reaches the first resistance, the next key point to watch is probably around $430: the way BNB’s price will act around this line might confirm or reject longer-term prognosis.
Binance Coin Price Prediction
Binance Coin Price Prediction for 2023
Binance Coin Price Prediction for 2024
Binance Coin Price Prediction for 2025
Binance Coin Price Prediction for 2026
Binance Coin Price Prediction for 2030
As it can be clear from the analysis cited above, Binance Coin (BNB) projections are rather contradictory. There is no universal consensus either about positive or negative future BNB price movements. Indeed, the future possible growth depends on various factors: announcements, new technological solutions of the Binance Coin projects, the crypto environment in general, legal position, and so on. We kindly remind you that before investing in any cryptocurrency, it is essential to do your own research (DYOR).
Will Binance Coin (BNB) hit $1,000?
Yes, Binance Coin (BNB) will hit $1000 in just a few years, according to the majority of experts. The market’s volatility makes it hard to be sure, but the probability based on current trends is very high.
Should I buy Binance Coin (BNB) and how can I do it?
Yes, you should buy Binance Coin if you’re looking to diversify your portfolio with crypto as this is one of the larger coins with a strong company behind it, so it’s less risky than many others. You can buy Binance Coin on Binance, of course (even with a credit card). It's also listed on many other exchanges, so you can choose the most convenient way to buy or trade BNB; for those who prefer instant exchanges and non-custodial storage, SwapSpace is the best option.
Is the Binance Coin (BNB) a scam?
No, Binance Coin (BNB) is most likely not a scam, since it’s issued and supported by Binance — a large, well-known, and trusted exchange in the space. Launching a scam coin would damage Binance’s reputation as a whole, so BNB being a scam is probably not the case.
Why is Binance coin so expensive?
Binance Coin is so expensive because of the combination of factors: strong fundamentals, company support, built-in user base, and public interest carried over from the time when it was a token on Ethereum. All this pushed Binance Coin into the top 5 cryptocurrencies by market capitalization.
Is Binance Coin worth buying?
Yes, Binance Coin is worth buying for people who want to be diversified crypto investors. It’s one of the larger coins with the high gain potential.
What is the potential of Binance Coin?
Binance Coin has an incredible potential to grow 300% or more. Changpeng Zhao, the founder of Binance, is known for his business acumen and good development ideas, so there might be something exciting in Binance Coin’s future that will gather even more potential for this coin.
Can Binance Coin crash or will it keep going up?
As of late summer of 2021, most experts agree that Binance Coin’s price will keep going up, especially long-term. However, keep in mind that the crypto market is volatile and Binance Coin price predictions might change, so do your own research.
Is it a good time to buy Binance (BNB) crypto coin?
August 2021, which is when this article is being written, is a good time to buy Binance Coin (BNB). One must remember, though, that timing the market is a dangerous idea; if you believe in Binance Coin and think that its price will keep going up, then any time is a good time to buy.