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.
Binance Coin, also known as BNB, was first launched in 2017 as part of Binance’s initial coin offering (ICO). The goal of the ICO was to raise funds for the development of the Binance platform and exchange system, as well as for branding, marketing, and education for new innovators in the industry. The ICO was successful, with Binance raising $15 million in Bitcoin and Ethereum from the sale of 100 million BNB tokens.
Initially, Binance Coin was an ERC-20 token built on the Ethereum blockchain. It was designed as a reward mechanism for those who helped bring Binance to the public, and it also entitled users to lower trading fees. However, in 2019, Binance launched its own blockchain, known as the Binance Chain. This new blockchain is smart contract-enabled and powered by BNB, its native token.
Owning BNB on the Binance Chain grants users access to exclusive token sales and a reduction in trading costs. It can also be used as a community token for dApps on the Binance Chain. The launch of the Binance Chain also marked a significant shift for Binance Coin, as all BNB holders were required to participate in a token swap in order to exchange their ERC-20 BNB tokens for the new Binance Chain BNB tokens.
Read Price Prediction for Binance Coin [BNB] 2023-24
In the early days of BNB, its price was relatively stable and showed steady, gradual growth. However, in the past year, the price of BNB saw some significant fluctuations.
In late 2020, BNB experienced a significant bull run, reaching an all-time high of nearly $40 in December of that year. This was driven in part by the overall bull market in the cryptocurrency space, as well as a strong demand for BNB as a utility token on the Binance platform.
In 2021, Binance and its blockchain network gained popularity, causing the value of BNB to soar. Owning BNB on the Binance Chain grants users access to exclusive token sales and a reduction in trading costs. It can also be used as a community token for dApps on the Binance Chain.
Investors who bought BNB at the start of the year were rewarded with returns of over 1,200% by the end of the year. Binance Chain has since become the native blockchain of BNB, and Binance.US has adopted BNB as its official cryptocurrency.
The launch of the Binance Chain also marked a significant shift for Binance Coin, as all BNB holders were required to participate in a token swap in order to exchange their ERC-20 BNB tokens for the new Binance Chain BNB tokens.
One reason behind BNB’s relatively strong performance over the years has been its strong fundamentals. BNB is also backed by a number of high-profile partnerships and collaborations, which adds to its credibility and appeal.
On the other hand, it shouldn’t be forgotten that the exploit on BNB chain-based Ankr protocol on 1 December sent BNB’s price down by almost 5% within a matter of hours. As far as price action is concerned, the bulls attempted to break the key resistance zone at $300 back on 5 December. However, the bulls held their ground. $281 has emerged as a short-term support zone.
BNB has been in the news recently due to its involvement in the hack that was carried out on the bankrupt crypto exchange FTX. The perpetrator swapped thousands of BNB tokens for other cryptos but still holds an estimated $41 million worth of BNB.
The immense volatility in BNB prompted some strategic decisions from Binance CEO Changpeng Zhao, one of them being the top-up of the exchange’s Safe Asset Funds for Users or SAFU. The exchange announced that it will be replenishing this insurance fund, bringing its holdings up to $1 billion.
June 2022 had a yearly low of $183 as a result of this decline. However, it is important to note that on the daily chart, the RSI indicator has not yet risen beyond 50.
The nearest long-term resistance level, at $427, would be reached if the current trend continues.
Late in January 2021, Binance Coin joined the upswing in the cryptocurrency market, rising from $40 to $330 in a single month. BNB’s price dropped in March, trading for a while in the $250 to $300 region, but in April it rose again quickly, reaching an all-time high of $690.93 on May 10.
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.
In the past, Binance Coin (BNB) rose subtly and gradually to rank among the most valuable cryptocurrencies by market cap. Above all, the growth of Binance, the biggest cryptocurrency trading platform, has caused the value of the BNB to rise significantly in recent years.
In recent months, the bear market has caused Binance Coin (BNB) to experience more severe losses. BNB surpassed its all-time high of $690 during the May 2021 bull market. However, the bear market soon began in November and the price plummeted.
When consumers use the BNB on the platform, Binance reimburses them for a large portion of the transaction expenses. BNB has grown in significance as a component of the platform over the past few years. The demand for Binance Coin rises as Binance expands and gains more users, which boosts the coin’s price and forecast.
Binance makes sure that the supply of BNB is routinely lowered as demand rises. Every three months, a specific portion of BNB is destroyed, making Binance Coin deflationary and improving the outlook for BNB going forward.
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 fourth-largest crypto in the world.
Late in January 2021, Binance Coin joined the upswing in the cryptocurrency market, rising from $40 to $330 in a single month. BNB’s price dropped in March, trading for a while in the $250 to $300 region, but in April it started to rise again quickly, reaching an all-time high of $690.93 on May 10.
Binance Coin’s price fell as the entire cryptocurrency market collapsed in late May 2021. At about $200, it recovered and rose to about $430, but this upturn was fleeting. BNB fell to about $250 in late June and then fell once more in the middle of July. However, the market began to show signs of recovery later that month, and Binance Coin wasn’t an exception. BNB’s price increased dramatically once more, surpassing $350 in the first half of August.
However, like most cryptos in the market, 2022 wasn’t a good year for the exchange token, with BNB falling on the charts.
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
As per TradingView, BNB was trading at about $279.3 at press time, with a market cap of $43.1 billion. In fact, it has fallen by over 5% on the charts on the weekly front.
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. 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 55 days.
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, strong venture team, and 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 neighborhood 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 2023.
It’s critical to bear in mind that cryptocurrency markets are incredibly unpredictable, making it challenging to provide long-term projections. Worth noting, however, is that the F&G Index was in the ‘fear’ zone at press time.