Binance Coin Trading Predictions For 2021 Onwards

Last Updated August 16th 2021
12 Min Read

Binance Coin has been on investor’s radars for a while now. Binance Coin is the native coin of the Binance cryptocurrency exchange. This is the world’s largest cryptocurrency exchange and this gives Binance Coin sway in the decentralized finance (Defi) industry. 

Binance coin uses the token BNB and is used to pay the transaction fees on the Binance exchange system. As this is such an important cryptocurrency exchange this boosts the popularity of Binance Coin. Users of the exchange are becoming familiar with using Binance Coin which supports wider market adoption of this cryptocurrency.

The Binance system has a lot of momentum behind it currently. This is causing more and more investors to add BNB to their portfolios in 2021. After the mid-year dip across the crypto sector, investors are using the price drop period to invest in low-cost coins before the market picks up again.

The Binance system was set up by Changpeng Zhao who based the operation out of China. However, since moving away from China Binance Coin has seen far more expansion as well as industry adoption. Zhao also set up Binance Smart Chain, using a hybrid system called Proof of Stake Authority. But Binance coin has been the dominant cryptocurrency for the Binance system.

New investors in 2021 are looking to capitalize on the previous success of Binance Coin. Binance Coin has previously achieved third-place ranking in terms of market capitalization. Currently, BNB is ranked as the fourth-largest cryptocurrency by market cap, behind Bitcoin, Ethereum and Cardano.

These impressive rankings, coupled with the value of the coin, make BNB a very promising altcoin to look into going in the last quarter of 2021. Binance Coin is currently trading above $400 which is. This is an extremely impressive achievement for an altcoin and is one of the reasons new investments are being made in BNB in 2021.

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What Binance Coin Offers

Binance Coin users have the opportunity to access a variety of perks offered by the Binance exchange system. These are adding extra incentives for new investment as well as general market adoption.

Those who refer others to Binance can take part in their referral program and earn a commission. Users of the BNB Vault have access to rewards schemes. Their VIP programme allows the transaction fees to be cut down for users of the system and these can be made through the custom Binance Pay system.

For those looking to use Binance in a similar way to centralised banking, there are Binance Visa cards available, which will then help to raise market adoption rates. Loans can also be issued through the Binance exchange system.

Binance’s Launchpool helps new users to farm tokens and their Launch Pad platform offers exclusive crypto coin sales. These factors are all leading more people to use Binance’s exchange and the Binance Coin itself.

Binance Coin’s Shift and Expansion

Due to China’s campaign against cryptocurrency usage, Binance Coin made the move into Japan not long after it was set up in 2017. By the following year, Japan was restricting the crypto sector throughout the country leading the Binance system to search for a new base.

After considering Malta as a viable base for their operations, as well as Bermuda, the cryptocurrency and exchange settled in the Cayman Islands. However, they have node operators set up across the world to keep their distribution global.

Although the Cayman Islands is considered the operational base, BNB’s movement is widespread as market adoption and investment continues to increase, improving the BNB’s scalable potential.

To stabilise the coin and increase long term value potential Binance Coin will ‘burn’ half of its supply slowly over time. This reduction of the coin’s total availability is an innovative strategy to control the cryptocurrency’s stability.

Read Also: 26 Reasons Why You Should Invest in Binance Coin Today

Binance Coin Expert CEO

The Binance ecosystem has the benefit of experience. The CEO and founder, Changpeng Zhao, has had extensive experience in the cryptocurrency industry and within the financial trading sector. In 2005 he founded Fusion Systems, creating a Chinese stock exchange system to support rapid stock trading transactions.

Nearly a decade later Zhao was deep into the cryptocurrency scene as a core member of Blockchain.info managing their work in cryptocurrency wallets. He also worked as acting CTO of OKCoin overseeing the exchange of fiat and digital currencies.

These areas of expertise have set Zhao up to steer Binance Coin forward as it progresses towards larger profit margins for its investors.

Binance Coin’s Major Deals

The stable coin initiative in 2018 was a huge success as Binance partnered with two other major exchange systems to generate $32M towards further stable coin research. This has the effect of boosting the profile of Binance Coin and the currency exchange.

A year later in 2019, a partnership emerged with the Simplex payment processing system. This triggered the set up of a system of Visa and Mastercards able to support cryptocurrency purchases. This was a massive move for Binance Coin, even though the coin is not available on these cards as the transaction fees are still fuelled by Binance Coin.

By late 2019 Binance had absorbed WazirX, an Indian bitcoin exchange, furthering the scalability of the company.

Check Out: Pros And Cons Of Binance Coin

Trading BNB to USD

BNB price chart

Binance coin has benefitted from the sector-wide crypto boom which occurred earlier in 2021. After suffering an extended resistance period prior to 2021, the surges from 2021 onwards welcomed an upward trend. Early investors saw excellent percentage returns between February and May 2021 before the summer downturn.

BNB price chart

Like most of the cryptocurrency sector, BNB suffered losses throughout Jun and July. The bullish trading seen earlier in the year gave way to an extended downward trend. This has led to disappointment for long term investors. However, many are using the low coin prices as a buying opportunity. New investors are buying now, in late 2021, to then profit when the market recovers. Those who bought during the late May dip towards $260 have already seen returns on their investment.

BNB price chart

Around August 2021 BNB  began its recovery with a steady upward trajectory beginning to show itself. As the month has gone on the previous bearish patterns have shifted back towards the bullish trading that investors have come to expect in 2021. Recent investors have started to see positive returns and the upward trends are encouraging further investment in BNB.

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Will Binance Coin Rebound from the Last Correction?

The correction following the all-time high of $690.93 which was achieved in May 2021 was harsh. Investors worried that recovery from the $262 low would be slowed by sideways trading like the patterns seen in 2020. The bearish cycle dominating June and July led to further worry that a downward trajectory would take hold and push the BNB coin price to new lows for the rest of 2021.

However, although BNB is still a way off the highs which nearly touched the $700 mark, the outlook is far more positive in August 2021. There has been a steady climb in price throughout the first two weeks of August which has recovered some of the losses.

This brings the BNB coin price to $410 currently. If this continues in a similar trading pattern over the next few months the previous high will be fully recovered before the end of 2021. This is excellent news for new and old investors in Binance Coin, giving the end of the year a very positive outlook.

Predictions for Binance Coin in 2021 and the Future

The current long term predictions are supporting a slow increase in price as we move from 2021 into the first quarter of 2022. After this it is expected that there will be a substantial bull run, taking BNB above $1000. The upward estimates see BNB achieving $1500 before the end of 2023.

2023 is likely to be slow but profitable, with a positive trajectory, but with dips throughout the year. A prolonged bull run is not then expected until 2024 or 2025 when BNB should be able to move close to the $2000 mark.

Some experts feel that as the BNB coin stabilises the upward trajectory will be a smooth one, with a steady increase over 2023 through to 2025. However, these estimates are also predicting that the upward curve will remain beneath the $2000 mark during this time, without periods of extreme price surges.

Lower estimates put BNB at $1200 by 2025, which is a substantial increase, but a slower rate than most investors are currently hoping for.

Binance Coin Trading Forecast for 2021

Experts are predicting a steady recovery of the previous highs during the remainder of 2021. Although Binance Coin BNB is unlikely to hit $700 by the end of the year, the predictions are signalling that BNB will reach at least $600 if the overall trajectory continues to hold.

As August has already seen positive movement, BNB is in a good position compared to the wider crypto market. The market adoption is also holding steady which is helping to support BNB’s recovery from the last major correction and its positive trajectory moving forward.

Those investing in Binance Coin in 2021 are likely to see some profitable returns. However, the earlier the investments are placed in 2021 the more likely they are to see a sizable increase before the end of the year. Investments made towards the end of the final annual quarter are more likely to see sideways movement and have to wait until 2022 for any substantial profit.

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FAQs

Who is behind Binance Coin?

Software developer Changpeng Zhao founded and developed Binance and the native coin Binance Coin. He oversaw the move out of China and the coin’s initial development and application. Zhao previously worked with a variety of other fiat and cryptocurrency exchange systems before starting up Binance.

What is Binance Coin?

Binance Coin is the currency used by the Binance cryptocurrency exchange to process the fees charged by the exchange. Binance coin has the token BNB and can be traded as an asset and used as a cryptocurrency in its own right.

Its high usage is driven by Binance being the fourth largest cryptocurrency exchange, at the time of writing.

How does Binance Coin compare to the market? 

Binance Coin continues to shift between third and fourth position, in terms of market capitalization. BNB and ADA are extremely closely matched by market cap, as they both jostle for third place, behind Bitcoin and Ethereum.

The market cap of BNB is $67.6B, as of the time of writing, which allows for massive scalability going forward. The performance of BNB when compared to the Defi sector as a whole has been volatile. But the coin is still holding an impressive market position. 

Should I invest in Binance Coin in 2021?

This is likely to be a profitable time to invest in Binance Coin BNB. The current trajectory is positive, so new investors are profiting during 2021 as the coin price creeps back up.

Although volatile periods are inevitable within the crypto market and Defi sector, the overall outlook for BNB price is good and by the end of 2022, the coin price should have risen substantially.

If this continues to play out as market analysts expect, then 2021 is a very good time to invest in Binance Coin BNB to capitalized on the building momentum going forward.

Is Binance Coin still going to go up?

According to market experts, Binance coin will be going up over the next four years.

Although many can not agree on a percentage increase, most experts are estimating the price of Binance Coin to be valued between $1200 and $2000 by the end of 2022.

What will BNB prices rise to in 2021?

A surge is not predicted during the rest of 2021. But the steady increase is likely to continue as we progress through the last quarter. It is unclear if the previous high of $690 will be achieved, however, the current upward trend should bring Binance Coin BNB much closer to this position.

It is likely that BNB will exceed $600 if it keeps its steady momentum going throughout the final quarter of 2021.

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