Following a market-wide upturn at the start of 2021, all eyes are once again on the cryptocurrency sector as several prominent coins yield huge returns for investors. One such coin that has seen exponential growth in the first few weeks of the year has been Binance Coin.
Following a record-breaking bull in February, Binance Coin became the third-largest cryptocurrency by market capitalisation, having snatched the spot from Ripple as BNB’s total value soared to around $40 billion.
Binance coin is no flash in the pan either - it is the native currency of the Binance Exchange, the biggest crypto exchange in the world in terms of trading volume, processing over 1.4 million transactions per second. This means that not only is Binance Coin a viable digital payment system, it also boasts huge trading volume thanks to its role as an exchange medium.
So what can we expect from Binance Coin in future? BNB is arguably one of the more stable cryptocurrencies thanks to the ongoing popularity of its parent exchange. It has also shown that it is a major player in the crypto scene, having benefited from the recent market upturn.
In the following Binance Coin price prediction, we’ll take a look at the coin’s technical particulars and how leading analysts are expecting it to perform over the next five to ten years.
The History of Binance Coin
As we’ve noted above, BNB is the coin that powers the Binance ecosystem. It was originally built on the Ethereum blockchain, before migrating over to its own network in 2017. However, Binance Coin has numerous applications. Just like most cryptocurrencies, it can be traded as an asset or used to pay for retail transactions.
BNB was initially launched as an initial coin offering. The founding team offered 20 million BNB tokens - about 10% of the total supply - to angel investors. The team retained 80 million (40%), and the remaining 100 million (50%), to those who took part in setting up the ICO process.
At the time of writing Binance coin’s most significant characteristic over other coins is its role in fuelling transactions on its parent exchange. The size and popularity of the Binance system offers the token a degree of stability and as people are incentivised to use BNB for trading fees, exchange fees, listing fees, and any other fees on the Binance exchange, trading volumes remain high.
When it comes to other applications, Binance has also struck some lucrative partnerships that have increased its popularity. They include an affiliation with Asia-based streaming platform, Uplive, which sells virtual gifts for BNB tokens to a user base of some 20 million. Binance coin is also supported by the platform, the mobile app, and the VISA debit card of Monaco.
Looking at Binance Coin’s Recent Price Performance
Until recently, Binance Coin had not experienced any of the sudden, meteoric prices rises that some cryptocurrencies have seen. Instead, the price of BNB has grown somewhat steadily, albeit in an undramatic fashion.
BNB reached parity with the dollar in its first year of trading and by January 2018 it was already hitting $23.91. This represented huge returns for those who chose to invest in Binance Coin early on, with returns of many hundreds of percent generated within months.
However, $20 then proved to be something of a barrier for BNB. Whilst most Binance Coin price predictions were optimistic, there were very few sustained bull runs until summer 2019, when BNB hit around $38 by August. Once again, things quickly settled back down and BNB found itself in familiar territory - trading between $15 and $20 until the end of 2020.
The crypto market experienced a major upsurge at the end of 2020 and going into 2021, however, many Binance Coin price predictions showed caution - believing that the good fortune may have passed BNB by. Indeed, by the end of January, BNB hat reached around $40. This was a solid 50% increase on its price at the end of summer 2020, but hardly the record-breaking run of Bitcoin or Ethereum.
However, things quickly changed in February. After a significant uptick in trading volumes on the Binance exchange and increased interest from institutions looking to invest in Binance Coin, prices skyrocketed to an all-time high of over $338 - representing growth of over 800%! Things have since settled down, but at the time of writing, BNB was trading at a very healthy $266 per token.
Is Binance Coin’s Growth Sustainable?
Even considering the market-wide upswing, Binance Coin’s sudden growth has been impressive. However, inevitably there have been talks of a market bubble and many have suggested that BNB will not be able to hold its current price.
So is the price of BNB sustainable? This depends on a few factors. Some experts believe that Binance’s recent good fortune is down to the launch of the Binance Smart Chain at the end of 2020. Binance launched the new network as a way of muscling in on the Decentralised Finance trend and compete with other smart networks, such as Bitcoin and Cardono, both of which have a dual-network infrastructure.
The upgrade meant that developers could use the Binance ecosystem to build their applications and platforms. It offered faster speeds than lower fees that Ethereum and generated significant interest. Naturally, this then led to renewed interest from investors, with Binance Coin price predictions beginning to tout BNB as a major contender for the top altcoin spot.
The Binance Smart Chain was launched in September 2020 - well ahead of the February price run - but it represents application and utility that could well see Binance Coin holdiing onto its value moving forward. At least, many Binance Coin price predictions are optimistic that BNB will continue to be one of the major altcoins, holding off threats from the likes of Tether and Bitcoin Cash to remain a top-five contender.
Can Binance Coin Corner the NFT market?
If you’ve been keeping an eye on developments in the blockchain world, then you’ve probably heard of Non-Fungible Tokens by this stage. NFTs are the latest phenomenon to hit the mainstream press, especially after Twitter CEO Jack Dorsey announced that he was auctioning his first-ever tweet - and that it was expected to sell for several million dollars.
Effectively, an NFT is proof of ownership of a digital asset. NFTs are used to represent digital works of art and other collectables as unique verifiable assets that are easy to trade on the blockchain and cannot be duplicated. NFTs differ from cryptocurrency tokens in that they are not mutually interchangeable, which means no two NFTs are the same. Cryptocurrencies, on the other hand, are fungible. In a nutshell, this means that one Bitcoin token, for example, can be replaced with another Bitcoin token and so on. With NFTs, this isn’t the case, making them an ideal mechanism for representing a digital asset.
So what have NFTs got to do with our Binance Coin price prediction? Creating an NFT is expensive - very expensive. In fact, Super Crypto News has estimated that it costs anywhere between $100 and $680 to mint an NFT on the Ethereum blockchain. And this is where Binance steps in.
Given that most digital artists are likely to put out a fairly large amount of content, the price of creating NFTs for their work will play a major factor in where they create them. There are several platforms out there for developing NFTs, such as Enjin, none have the suitability, funding and notoriety of the Binance ecosystem. As such, Binance’s own Binance Smart Chain has been heralded as an ideal environment for the creation of NFTs. As Ethereum gas prices remain high, most of the NFT developers will be naturally drawn to Binance Smart Chain as a lower-cost alternative.
Being a hotbed for NFTs is unlikely to generate huge growth, but it will certainly do a lot to boost Binance’s profile and could potentially lead to further investment from alternative markets. At the very least, being the go-to NFT platform could do a lot for BNB’s stability.
Check Out: Is Binance Coin A Good Investment?
What’s next: Binance Coin Price Predictions for 2025
As we have seen, the next few years could prove an interesting time for anyone choosing to invest in Binance Coin. It’s impossible to predict the future - especially with regards to the highly volatile crypto market - but by looking at several Binance Coin price predictions for 2025 we can at least build realistic expectations as to the altcoin’s potential.
DigitalCoinPrice is somewhat bullish with its Binance Coin price prediction. The platform predicts that BNB will hit $400 by the end of 2021 and continue to go from strength to strength over the next few years. By 2025, DCP has Binance Coin trading at $893 but is predicting a downturn before the year is out, with BNB dropping as low as $690 in October.
Even more optimistic is the Binance Coin forecast from Cryptocurrency Price Prediction. They have boldly claimed that, despite underperforming in 2022 and 2023, Binance Coin BNB will skyrocket in 2025 and eventually hit an ATH of $2,120.
Obviously, this more outlandish prediction should be approached with some suspicion, but it is certainly a vote of confidence in the longevity of Binance Coin.
Looking Further Ahead: Binance Coin Price Predictions for 2030
The cryptocurrency market moves extremely fast and ten years in the world of blockchain is a very long time. However, Binance Coin price predictions over the longer term can tell us a lot about the current market sentiment for BNB.
Once again, Cryptocurrency Price Prediction is very optimistic about BNB’s future. After a decade of sustained price growth, the platform believes that Binance Coin will be trading in excess of $8,000 by 2030. Of course, this is the best-case scenario and very much depends on Binance being able to maintain hegemony over Ethereum.
Elsewhere, Captain Altcoin has also made a long-term Binance Coin price prediction. Assuming that BNB ‘survives’ analysts at the platform have suggested it could reach at least 10-100 times its current all-time high. As a guideline, Captain Altcoin has BNB at over $3,000 by the end of the decade.
A cryptocurrency research firm by the name of Crypto Research Report is calling for Cardano (ADA) to reach $1,600 by 2025, and $4,500 by 2030.
Conclusion: Should you invest in Binance Coin?
It is an exciting time for the cryptocurrency market, as mainstream financial institutions and investors continue to embrace digital currency in a way not seen previously. In addition, the rise of Dapps and DeFi promises to further revolutionise the worlds of finance and commerce.
Binance Coin, in particular, has recently entered into unchartered territory with the launch of its smart network. Not only will this upgrade boost Binance’s capabilities, but it will also allow it to compete with the likes of Ethereum and Cardano on a technical level.
This is all good news for anyone looking to invest in Binance Coin. Whether over the long term or the short term, BNB is certainly a worthwhile addition to any portfolio. In addition to its future potential, with most Binance Coin price predictions pointing to impressive growth, the popularity of the Binance Exchange also makes it one of the more stable cryptocurrency investments out there.
So should you invest in Binance Coin?
If you have some appetite for risk and are looking to expand your investment portfolio to include cryptocurrencies other than Bitcoin, then Binance Coin BNB could well be a very solid choice.
Of course, Binance Coin price predictions are by no means guaranteed, but the optimism surrounding BNB at the moment is certainly worth noting.
As discussed, anyone who does choose to invest in Binance Coin will need to keep an eye on future developments to decide whether they see the altcoin as a long or short term investment.
Read Also: Pros And Cons Of Investing In Binance Coin
Where to Invest in Binance Coin
If you are interested in adding Binance Coin to your investment portfolio but are perhaps new to the crypto world, then there are a few things you’ll need to get started. Most importantly, you’ll need an account with a broker that will allow you to access the market.
For most investors, we recommend eToro. The platform is known in the industry for being highly accessible and offering plenty of information and educational resources for those new to the world of cryptocurrency.
Setting up an account with eToro takes just a few minutes and once you’re up-and-running you’ll be able to buy and sell all the top cryptocurrencies as well as branch out into other markets, such as stocks and forex.
eToro – Best Broker to Buy Binance Coin BNB
eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.
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Is now a good time to invest in Binance Coin?
The price of Binance Coin skyrocketed in February 2021, which prompted many would-be investors to wonder whether the token is set for a downturn. However, most Binance Coin price predictions are pointing to long-term growth, so whilst the current price of BNB is reasonably high, choosing to invest in Binance Coin now could yield decent returns in the future.
What are Binance Coin price predictions like for 2025?
Binance Coin benefits from being the native token of one of the world’s biggest exchanges. Combined with its recent Binance Smart Network upgrade, BNB looks to have a bright future. Many Binance Coin price predictions believe the altcoin will be trading anywhere between $800 and $2000 by 2025.
Will Binance Coin overtake Ethereum?
Binance Coin’s recent price surge saw the altcoin jump up the rankings of top cryptocurrencies by market cap. Naturally, Bitcoin is still well out in front, but many analysts are speculating that Binance Coin could eventually topple Ethereum. Whilst this looked unlikely at the time of writing, a lot will depend on how each networks respective upgrades bed in. It's also worth noting that they differ enough to complement each other well as part of a diverse investment portfolio.
Where can I invest in Binance Coin?
If you plan to invest in Binance Coin then you’ll need to find a reputable exchange. We recommend eToro for most investors as it offers plenty of trading tools and metrics, as well as a wealth of educational resources.
Should I invest in Binance Coin long term or short term?
Any cryptocurrency investment needs to be closely monitored. The market changes quickly and what may once have seemed like a solid investment can suddenly need to be sold off as quickly as possible. At the time of writing, Binance Coin has a bright future, but a lot depends on its ability to scale up its technology to rival other altcoins.