Most cryptocurrencies picked a dramatic speed in 2021 that saw their prices soar. Binance coin was one of them. While it has been under the radar for some time, the ERC-20 token underwent an impressive market turnover in May 2021 that saw it become the world’s third-largest cryptocurrency.
That’s quite awe-inspiring, considering that in December 2020, BNB was ranked as the 10th largest cryptocurrency. That means that in barely a few months last year, the coin outperformed major players like Litecoin and Ripple XRP to sit behind Ethereum. This got the attention of many people, including the media and investors.
Although Binance Coin has limited applications compared to Ethereum and Bitcoin, some investors are already considering adding it to their portfolio. But how long will the bull run continue? Will BNB value keep rising?
In this guide, we will be looking at the latest Binance Coin price prediction based on various factors such as price history and what analysts are saying. Before that, let’s familiarize ourselves with what exactly Binance Coin is.
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What is Binance Coin, and How Does it Work?
Binance Coin was launched by the Chinese-based cryptocurrency exchange Binance in 2017. This was done in an attempt to attract investors who would help develop the exchange. The coin is mostly used by Binance users to pay fees such as exchange and listing fees. Binance encourages the use of its token by offering discounted fees to users who use it for transactions. While this is the primary function of BNB, you can still use it for other transactions, just like you would do with Bitcoin.
Binance Coin is also mostly used for investment in digital asset ICOs that are sponsored by Binance’s Launchpad program. This means that you can invest in new digital assets that are traded on the Exchange by using your BNB tokens. Generally, BNB is the most commonly used tokens on Binance, especially for trading with other cryptocurrencies.
When it was initially launched, BNB ran on the Ethereum platform as an ERC-20 token and couldn’t be mined like Bitcoin or the other cryptocurrencies. However, a year later, all the tokens were transferred to Binance’s own blockchain, known as Binance Chain.
They are now mostly used as trading assets and as a way to reduce fees paid by Binance users since the exchange doesn’t allow the use of fiat currencies.
Binance Coin in 2022: Everything You Need to Know
The market-wide bull run that set off in December 2020 clearly rubbed off on Binance Coin. The cryptocurrency had one of the biggest surges that saw it hitting new all-time-highs. When January kicked off, the coin was trading at below the $40 mark but jumped over the $100 by February.
The most parabolic price surge happened between February 16th and 20th, when the BNB went from $129 to $338. That is a 162% increase in a matter of four days. Just as dramatic, the coin dropped 23% in a single day to hit $257 on 21st February 2021.
Clearly, this kind of price surge got the attention of many people, and for a moment, investors and the media shifted their attention from Bitcoin to the new coin in town; BNB. In May 2021 Binance coin reached its current all-time high of $690.93.
We can’t say for sure if 2022 is the right time to invest. There are a few things we need to factor in before we can give a conclusive answer. So, if you are considering adding this new coin to your portfolio but are still on the fence about it, read ahead.
We have prepared a detailed price analysis and how we expect the price to move this year and the years ahead. One of the ways we can deduce how the price of BNB will behave in the future is by looking at the past trends.
So, let’s do that.
Binance Coin Price History
Like most cryptocurrencies, BNB had a pretty dismal start. However, given that it came at a time when cryptocurrency and blockchain were less of an alien concept, it quickly picked up speed and elbowed its way to being among the top 5 digital assets in the world.
BNB was launched in July 2017, around the time when Bitcoin was already playing above the $2000 mark. It started trading at around $0.1076, which is pretty impressive compared to how other coins started. For instance, Bitcoin started at lower than $0.01 and only went above the $1 mark after three years. Binance Coin did the same in two months.
The price dropped a bit at the beginning of August 2017 before jumping above the $1 mark in mid-August. Towards the end of August, it again soared above $2. In December 2017, BNB touched the $3 mark then quickly surged to $21 by January 2018. By February 2018, the price had again dropped to about $8, then stabilized between $9 and $16 from March to October 2018.
In December 2019, the price went below $5, then again rose to above $20 in April 2019. On June 24th, 2019, BNB crossed $37 before dropping 64% to close the year at $13. Almost two months later, on February 15, 2020, the price had doubled again to hit $26.3. It then played between $12 to $39 from March to December 2020 before crossing $40 at the beginning of January 2021.
From there, the price saw a parabolic rise as it went from $40 to $342 in less than a month. This was BNB’s biggest price surge since it was launched. In the bull market in May, BNB reached its current all-time high of $690.93. Since then it has dropped and at the time of writing, the price is just above $514.
Read Also: Is Binance Coin A Good Investment?
Binance Coin Price Predictions 2022 – 2023
According to Longforecast.com, BNB will start 2022 at $530. This is more bearish than Digital Coin Price’s $661 by February 2022. Wallet investor predicts no more than $619, a prediction in between those of Longforecast.com and Digital Coin Price.
The difference in predictions between these three platforms spreads across the rest of 2022. Based on predictions from Digital Coin Price, BNB will stabilize between $769 and $682 from April to August 2022 before finally hitting $739 in November.
On the other hand, Longforecast.com predicts that the price will fluctuate between $530 and $575 from February to September 2022. However, from October, it will start rising and close the year at $596. This is now much closer to Digital Coin Price’s $649 by the end of 2022. However, Trading Beasts is still a bit conservative and predicts the BNB will hit $625 just after Christmas.
Come 2023, Longforecast.com starts off Binance Coin at $691, which isn’t much different from where it ended in December. Digital Coin Price also drops its December prediction to $920 for January 2022, keeping a close range with Longforecast.com.
Both platforms agree that the price will increase in February. However, the gap in prediction begins to widen again as Digital Coin Price predicts that the price will fall in March while Longforecast.com believes it will rise.
Longforecast.com goes ahead to predict that BNB will hit $900 by March and cross the $1000 mark in May. On the other hand, Digital Coin Price doesn’t see Binance Coin crossing $1000 in the next few years. Instead, the cryptocurrency will close 2023 at around $826, which is half the prediction from Longforecast.com
As usual, Trading Beasts gives an underwhelming prediction of $592 at the end of 2023.
Binance Coin Price 2024 - 2025 and Beyond
Giving predictions for the next five years is usually a long shot, even for veteran investors. If we have learned anything from the volatility in the cryptocurrency market, it is that even experts and seasoned investors are hard-pressed to give an accurate short-term prediction.
However, this does not deter some of the crypto platforms from giving their predictions. Of course, some of these platforms have previously given severely underwhelming forecasts so, we can always expect the prices to be higher.
Digital Coin Price sees BNB hitting the $1000 mark in 2024. Longforecast.com sees BNB starting 2024 at $1,630 but then declining for the rest of the year only to rise in the end of it. Even worse, Trading Beasts haven’t hit $600 yet.
According to Digital Coin Price, BNB will be trading at $952 by December 2024, while Trading Beasts predicts the coin will end the year at $534. These are both low numbers considering that Longforecast.com is at almost $1,286 for both the end of 2024 and the beginning of 2025.
For such a long forecast, it is understandable that there would be vast differences in predictions. However, one thing is constant in all the projections we have seen so far; the price will definitely be higher come 2025.
For Longforecast.com, this rise will be between $1,200 to $1,700. Another platform, The Cryptocurrency Price Prediction, is aggressively bullish and believes that the price will cross the $7,700 mark in 2025.
Wallet Investor predicts that BNB will be worth about $2,595 in 2025.
Factors That Affect The Price Of Binance Coin
All of the predictions given in this guide are based on several factors that usually inform the prices of cryptocurrencies. Basically, all these factors stem from some principles of technical analysis, which looks at the price history and current trends.
Of course, these factors are only those that directly affect the price of Binance Coin. They include:
Supply and Demand
Supply and demand will always inform the value of any commodity. In a nutshell, if the supply of BNB is greater than the demand, the price will drop. On the other, if the demand is greater than the supply, the price will rise. There are other internal factors that affect the relationship between supply and demand and, ultimately, the prices.
Total BNB Tokens in Circulation
There are only 200 million Binance tokens in circulation. However, since BNB is vulnerable to inflation, the Binance exchange deliberately destroys some tokens overtime to cut supply and boost valuation. This is done so that the total supply of 200 million is cut by half, with only 100 million remaining in existence.
This way, the exchange can control the supply of BNB tokens and stabilize the price while also indirectly manipulating the relationship between supply and demand.
Success of ICOs
Like we mentioned earlier, Binance has a Launchpad program that takes new assets through an Initial Coin Offering (ICO). The success of these ICOs can significantly boost the price of BNB.
How? Here is what happens;
When the Binance exchange successfully launches a range of new digital assets, BNB users will have more options to trade. And since Binance Coin is the most utilized trading asset on Binance, its demand will increase as more opportunities to trade arise. This demand will subsequently drive its price higher.
Check Out: How to Invest in Binance Coin
Conclusion: Will the Value of BNB Rise
After the monumental rise in January, many people are left wondering whether the price of Binance Coin will keep rising or fall back to its former lows. Judging from how the other cryptocurrencies are behaving, it seems there is a market-wide uptrend this year.
While we cannot say for sure if BNB hits $1000 by the end of this year, there is a high probability that it will go beyond its current all-time-high. It is just a matter of time before we can start wishing we have invested earlier.
Already, new investors are scrambling to pile their savings on BNB, while those who invested as early as last year are ripping massively from the January price surge. So, even with the unpredictability in the market, there is a good chance that we will be looking at bigger numbers in the next few years.
The most bullish predictions pin the price at more than $3000 by 2025. This might come earlier depending on how well the coin is embraced in the cryptocurrency community. So, whether you should invest now or wait depends on your investment goals.
But buying and HODL while the price is still low proved to be good choice.
You never know how high it can go. If you have some extra, you buy a few hundred BNB tokens, then forget about them for a few years. You might just make the statistics of a success story in the price finally goes on a long uptrend momentum.
All in all, make sure that you understand what you are getting into. Cryptocurrencies are very volatile, and you can’t entirely depend on these predictions to make your investment decision. Very few predictions come close to being accurate. Also, work with someone who understands the market and ensure that you are not investing more money than you can afford to lose.
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