Binance Coin (BNB) is a utility token launched in 2017 by Binance — one of the largest cryptocurrency exchanges in the world. This launch is a part of the vision put forward by Changpeng Zhao — the founder of Binance Coin, as well as Binance exchange itself. His goal is the expansion of the Binance ecosystem, which also includes the development of its own blockchain, rolling out a wallet, opening some public educational resources, etc.
BNB was initially issued through an initial coin offering (ICO) on the Ethereum blockchain, to be used for discount trading fees. However, the system’s evolution changed how Binance Coin works:
- After the migration onto the Binance chain, BNB became a primary means of powering the network as transaction fees, including trading fees on Binance DEX;
- BNB is used as a digital currency, as it’s a popular way to pay for the goods and services in the Binance partner network;
- Another use case for Binance coin is unlocking the exclusive access to some IEOs made on Binance platform called Launchpad;
- BNB token also powers Binance Smart Chain, which is a smart contract compatible chain.
Binance Coin is a deflationary currency, meaning that its supply is steadily shrinking, increasing the coin’s scarcity and, therefore value. To achieve this, Binance buys back some of the circulating supply of BNB every quarter and burns it.
Binance Coin joined the crypto market rally in late January 2021, growing from ~$40 to ~$330 in a month. In March, the price of BNB went down, trading in the $250-$300 range for a while, but in April, Binance Coin resumed its meteoric rise, which resulted in an all-time high of $690.93 on May 10.
In late May 2021, Binance Coin’s price plunged as the whole crypto market crashed. At around $200, it bounced back, reaching ~$430, but this recovery was short-lived: as one can see on the Binance Coin live price chart, BNB dipped towards ~$250 in late June and then again — in mid-July. Later that month, however, the market started showing the signs of recovery, and Binance Coin hasn’t been an exception: BNB’s price grew significantly again, reaching $350 in the first half of August.
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.
Below we have collected the most reliable price projections for Binance Coin (BNB) from popular forecast platforms.
According to WalletInvestor, Binance Coin price will grow from $410.43 to $697.110 in one year. That makes BNB an awesome investment. The long-term earning potential is 69.85%. Predicted price for the end of 2026 is $2119.280.
Answering the question about if Binance Coin is a good investment, TradingBeasts say a resounding no. In the 2021 perspective, this coin price is predicted to reach $366.566 with a growth to $418.248 by the end of 2022.
In DigitalCoin analysis, the price of Binance Coin cryptocurrency will rise in the next 5 years starting from $416.331 as of today’s price to $1609.4890377. It will go up to $707.6111805 by 2022 and continue its growth in 2023–2024. Based on this forecast, Binance Coin is a profitable long-term investment.
In 2021, the average Binance Coin price will go up to $537.3. In 2022, Binance Coin’s price will rise significantly to an average of $1049.1666667.
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).
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.
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.
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.
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.
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.
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.
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.
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.
Disclaimer: This article should not be considered as offering trading recommendations. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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