Bancor is a popular DeFi protocol that has been tipped for growth in the coming years. Offering cross-chain staking opportunities and an advanced cryptocurrency exchange, Bancor has the potential to compete with many of the top projects on the market, including Aave, Compound and Uniswap.
DeFi is big business in 2022, with over $80 billion estimated to be locked into the various protocols. That figure was closer to $200 billion before the recent market downturn. This figure is expected to rise too, with many predicting that DeFi will become a trillion-dollar industry in the coming years.
It’s understandable, therefore, that many investors are keen to identify DeFi projects that have the potential for significant growth. Bancor has recently nudged its way up the leaderboard of DeFi projects in terms of TVL and many believe it has the potential to compete with the top projects in the space.
But is does Bancor really have anything different to offer in what is an already overcrowded market, or is it likely to remain a second-tier platform? In the following Bancor price prediction for 2025 and 2030, we’ll consider how the project measures up against competitors and hear from leading analysts on what they believe BNT might be capable of in terms of price growth.
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What Is A Decentralised Exchange?
Bancor is, in essence, a decentralised exchange. Before we go any further with our Bancor price prediction, it's important to pin down exactly what a DEX is.
Decentralised exchanges were a major development for cryptocurrency and form the bedrock of the DeFi industry. Whereas traditional exchanges - even some cryptocurrency exchanges - require a central authority to manage an order book, DEXs allow for direct peer-to-peer exchange, using smart contracts and algorithms to determine the trading environment.
In order to meet the needs of users, DEXs must provide an adequate level of liquidity. This is achieved using protocols involving liquidity pools - which are effectively stores of token pairs that are used to meet orders. The tokens in these pools are provided by liquidity providers, who earn a proportion of the trading fees in return.
Providing liquidity and staking tokens in DeFi is also hugely popular, as it provides a way in which cryptocurrency holders can put their tokens to work, rather than allowing them to remain dormant in their wallets.
Bancor - A Brief History
Bancor was founded by Eyal Hertzog, and Guy and Galia Benartzi and initial development started in Israel in 2017. The original whitepaper said that Bancor, "enables automatic price determination and an autonomous liquidity mechanism for tokens on smart contract blockchains."
An ICO in 2017 saw the project raise some $153 million in funding from almost 11,00 investors, including Tim Draper, a partner in investment firm Draper Fisher Jurvetson.
In 2020, Bancor underwent a major protocol update with the latest version - Bancor V2 - promising to deliver a better trading experience as well as stronger returns for those who stake their tokens in the platform’s liquidity pools.
What Is Bancor?
A basic description of Bancor reads like just about any other decentralised exchange on the market. In a nutshell, it is a project that incentivises users to provide liquidity so it can operate as an Automated Market Maker.
An AMM aims to provide liquidity for the exchange of cryptocurrencies, without needing a central authority or order book - as is the case with traditional exchanges. Instead, liquidity is provided from liquidity pools. Each pool contain a pair of tokens, plus a reserve of Bancor’s native BNT token. The ratio of the two other tokens in the pool is what determines their price on the exchange.
BNT tokens are used as a medium of exchange. Whenever a trade occurs on Bancor, tokens are converted into BMT as part of the protocol. To ensure an adequate supply of BNT enters the liquidity pools, those staking the token receive a higher share of the fees than they do with other tokens.
At this stage, Bancor probably sounds pretty similar to the likes of SushiSwap or Uniswap. However, it does have a few key advantages. Firstly, Bancor allows users to provide just one token to liquidity pools - whereas most exchanges require them to be added in pairs.
Another feature of Bancor is that it can provide its service on both the Ethereum and EOS blockchain and has scope to add integration for other leading platforms.
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The BNT Token
As it should be apparent, the BNT token forms an integral part of the whole Bancor protocol as it serves as a medium of exchange. Users can also earn rewards by staking the BNT. Whilst this is also true of other tokens, BNT earns better returns. By staking BNT, users earn 70% of the fee reward. Staking other tokens, such as ETH, earns 30% of the fee reward.
In addition to being part of the exchange mechanism, BNT is also the governance token of the project, meaning that holders can effectively steer the direction of the project by voting on key developments and protocol upgrades.
Looking At Bancor’s Price History
When it first became widely listed in 2017, Bancor commanded a comparatively high price of over $3.00. This may not sound like a big number, but considering many tokens start trading at just a fraction of a cent, it is certainly above the norm. However, BNT’s price halved within just a few weeks before seeing some fairly wild fluctuations.
In the final months of 2017 and into January 2018, Bancor saw a remarkable increase in its value, soaring from $1.92 in November to a record-high of $10.72 in January, marking growth of over 450% in a matter of weeks. It wasn’t to last, however, and by April BNT had slumped back to $2.25. There were a couple more upswings, but BNT generally declined until the end of 2018.
BNT then remained depressed across the latter half of 2019 much of 2020, even dropping below $0.20 in April of 2020. However, a surprise bull in August saw the token rise to $2.62. There was another period of fairly wild volatility before 2021 arrived. The first three months of the year were good to BNT, with the token soaring to $9.09 by March.
After a decline in price, Bancor once again surged in May, though only reaching $8.14 on this occasion. A market-wide downturn then followed and dragged BNT down to around $2.80 per token. The highest price it would attain in the latter half of 2021 was $4.18 in November before another market downturn struck going into 2022.
Bancor Price Predictions For 2025
So now we’ve seen how Bancor fits into the wider DeFi industry as well as taken a look back at its previous price movement. But what investors are really interested in is what may lie ahead for BNT. To shed some light on this, we consulted several Bancor price predictions for 2025.
DigitalCoinPrice has suggested that, whilst Bancor may see some volatility over the next couple of years, it will ultimately grow in value. For example, the Bancor token is expected to be up by around 70% at $3.90 by the end of 2023, but in January 2024 it is forecast to have dropped to $3.28. However, by the time January of 2025 comes around, the token is expected to have reached a trading price of $5.35 - an increase of 133% on today’s price.
WalletInvestor has also made its Bancor price prediction for 2025. It has the token struggling throughout much of 2023 and 2024, increasing in value at times but often losing any gains within a few weeks. However, in 2024 the token is expected to reach an average trading price in excess of $5 - which it will hold onto throughout the latter half of the year. By 2025, Bancor (BNT) is expected to be worth over $7.60.
The last Bancor price prediction for 2025 that we looked at was again from TradingBeasts. According to its technical analysis, BNT will actually record losses before the end of 2022 and again in the latter half of 2023, potentially dropping by as much as 13%. However, the token’s fortunes will turnaround moving forward and in December 2024 it is expected to reach an average trading price of $3.61 - up 60% on today’s price. This upwards trend is expected to continue and by the end of 2025 the Bancor token is expected to have doubled in value.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Bancor Price Predictions For 2030
Judging by the forecasts we have seen so far, it seems that Bancor could be a worthy addition to any cryptocurrency investment portfolio, but what can we expect over the longer term? As always, far reaching crypto forecasts should be taken with a pinch of salt as the market changes so quickly. However, looking at Bancor price predictions for 2030 can tell us something about current market sentiment towards the project and its long-term prospects.
If we look at DigitalCoinPrice’s Bancor price prediction for 2030, we can see that the token is expected to trade at a much higher value towards the end of the decade. In 2027, for example, the platform suggests that BNT could hit $7.33 in November, which would mark growth of 218% on today’s price. By the time 2030 arrives, Bancor could be worth as much as $10.85 per token.
Meanwhile, we found another Bancor price prediction for 2030 over on PricePrediction.net and found the platform to be extraordinary bullish. For example, by 2027 it expects the token to have reached an average trading price of $22.37. Just a year later, that figure is expected to have climbed to $31.26. By 2030, BNT is predicted to trade at a potential high of $76.77.
Realistically, this is a hugely optimistic prediction and we’d advise anyone thinking of investing in Bancor in 2022 to largely disregard it. Of course, it may prove accurate in years to come, but at this stage the DigitalCoinPrice forecast seems far more sensible.
Don't Miss: The 5 Best Ways To Buy Bancor Network Token (BNT)
Conclusion: Should You Invest In Bancor?
Bancor certainly presents an interesting investment opportunity. As DeFi continues to grow in popularity, exchanges are likely to see a significant uptick in usage as the years go by. In theory, this should have a positive impact on token price and help to propel Bancor into the top tier of cryptocurrencies.
The Bancor price predictions for 2025 and 2030 that we looked at suggest that analysts believe this will be the case. Depending on who you ask, BNT could be worth anywhere between $3.61 and $7.60 by the time 2025 comes around, which would mean those who choose to invest in Bancor in 2022 would see significant returns.
That being said, it’s worth remembering that the DeFi market is getting crowded and, whilst Bancor does offer some innovative features, it still has a fair bit of ground to cover before it can compete with the likes of Uniswap and Aave.
As always, investors should exercise caution here and consider where Bancor might slot into their existing portfolio. For example, if you are already widely invested in the top DeFi tokens, then Bancor could fit in as a higher risk investment that has more room for growth. Whatever you decide, the DeFi market changes quickly and it’s important to keep abreast of the latest developments.
Where To Buy Bancor
If you do decide to add Bancor to your portfolio, then you’ll need to find a reliable broker that lists the tokens. There are plenty to choose from - but some are certainly better than others. We recommend eToro for most investors, as it has established an excellent reputation for providing a secure and reliable trading experience.
Opening an account is simple and once verified you’ll be able to access eToro’s award-winning trading platform as well as a wealth of market information and learning resources. The platform also lists a great selection of the world’s top cryptocurrencies, as well as other financial instruments.
eToro – Best Platform To Buy Bancor
eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
FAQs
Is Bancor DeFi?
Bancor is a leading decentralised exchange which means it falls pretty squarely under the umbrella of DeFi. Not only does Bancor offer a platform for the buying and selling of top cryptocurrencies, it also offers the chance for token holders to provide liquidity and earn rewards.
Is Bancor better than Uniswap?
Uniswap is amongst the most popular DEXs on the market and certainly has more value locked in than Bancor. However, Bancor does have certain advantages. Firstly, it offers its services across both Ethereum and EOS, as well as having the capacity to integrate with other blockchains. Bancor also allows users to support single tokens into its liquidity pools, whereas most other leading DEXs require pairs.
Can I stake tokens with Bancor?
Bancor allows users to stake tokens in its liquidity pools to earn a share of trading fees. The great thing about Bancor is that it's possible to provide single tokens to these pools. Most exchanges, such as Uniswap, require tokens to be staked in pairs.
Where can I buy Bancor?
If you want to buy Bancor then you’ll need to find a broker or exchange that lists the token. If you are yet to open an account with one, then we’d recommend checking out eToro, as it has a highly approachable trading platform and lists several top cryptocurrencies - including Bancor.
What will Bancor be worth in 2025?
No one can say for sure what a cryptocurrency will be worth in the future, as the market changes so fast. However, if analysts forecasts are anything to go by, then Bancor could be worth anything from $5.61 to $7.60.
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