Why Binance Coin Will Skyrocket
Cryptocurrencies have become a global phenomenon in recent years. The meteoric rise of Bitcoin (from $10,000 since last year to an all-time high of $65,000 this April) and other altcoins has gained tremendous investor interest in recent times.
While Bitcoin is a pioneer in the world of cryptocurrencies, experts have adopted many approaches to evaluate tokens other than Bitcoin. Despite BTC's recent price drop, its success since its 2009 launch has inspired the invention of alternative digital assets such as Binance Coin (BNB). With a market value of $43,213,033,728, BNB is currently the fourth-largest crypto asset in the market.
Accounting key considerations such as unique features and price history, many have predicted that BNB is on its way to its next all-time high price. But before we get into the details, let us take a step back to understand the fundamentals of BNB.
Why Choose Binance Coin?
Binance Coin is the native cryptocurrency of the Binance exchange. BNB initially ran on the Ethereum blockchain with ERC 20 standard. However, it has now become the native coin of the Binance Chain.
Binance Coin has a maximum limit of 200 million BNB tokens. Every quarter, Binance uses one-fifth of its profits to repurchase and permanently destroy (also called burning) Binance Coins held in its treasury.
The Binance exchange is currently the largest cryptocurrency exchange, supporting over 1.4 million transactions per second (TPS). In 2017, Binance created BNB as a utility token for discounted trading fees. However, its uses have extended to numerous applications, including travel bookings, payments for transaction fees (on the Binance Chain), online service payments, entertainment, and financial service payments. The numerous use cases offered by BNB make it an enticing investment option.
Is Binance Coin Going To Skyrocket in 2021?
BNB is the crypto asset that powers the Binance ecosystem. As one of the most popular utility tokens, not only can users buy or sell BNB like any other digital asset, but it also comes with a vast range of applications and benefits.
Holders can use Binance Coins to invest in certain initial coin offerings (ICO) listed through Binance's launchpad program. Binance regularly lists new cryptocurrencies, and the use of BNB will give users a seamless marketplace for dealing with various virtual tokens. For this and many more reasons, BNB is poised to skyrocket in 2021.
Factors Leading Binance Coin To Skyrocket
There is more than one reason why Binance Coin is set to skyrocket. Here are a few of them.
#1 The fuel of Binance Chain (BSC)
BNB started going up significantly in February 2021, and this was almost entirely due to the Binance Smart Chain (BSC). BSC is relatively cheaper to work on than the Ethereum network. According to YCharts, average ETH transaction fees peaked at over $30 earlier, which is incredibly high. Therefore, BSC became a viable alternative, and many protocols began the switch.
Essentially, the more projects on the BSC, the more BNB is in use, boosting demand and increasing its price.
Today, Binance Smart Chain is the second-largest decentralized finance (DeFi) platform, with 36 DeFi projects. That is ten more projects than third place, Bitcoin. The DeFi market is expected to grow tremendously over the rest of 2021. According to reports, DeFi applications have grown from $20 billion to $50 billion in 2021, a surge of 150%.
As the DeFi sector grows in size, BNB is more likely to surge in prices and adoption.
#2 Wide range of use cases
In 2017, Binance Coin was created as a utility token for discounted trading fees. However, at the moment, it is more than just a utility coin. BNB's use cases have expanded to applications on various platforms.
For instance, BNB is used to pay for transaction fees on Binance.com, Binance DEX, and Binance Chain. It can also be used for payments at places like Crypto.com, Monetha, and HTC. BNB holders can book travel accommodations at sites such as TravelbyBit, Trip.io, and Travala.com using BNB.
You can also make BNB payments for entertainment purposes (virtual gifts, card packs, lotteries) and pay for online services (BitTorrent, Canva, Storm). Holders can use Binance Coin for financial purposes like taking out a loan at ETHLend or make investments at Moeda.
The crypto asset has garnered support from many notable partnerships, which have helped its usage spread. This includes a collaboration with Asia's premier live video streaming platform, Uplive. Uplive sells virtual gifts for BNB tokens to its 20-million user base.
Payments company Monaco also supports the BNB token on its platform, which includes the Monaco Visa Card and mobile app.
#3 Popularity of Binance
As mentioned earlier, Binance is the most popular and largest crypto exchange in the world. It has a diverse selection of coins to buy/sell and the most crypto to fiat pairs. In 2021, crypto trading volume increased significantly, and Binance was at the heart of this action.
BNB benefited hugely from this as traders use BNB on the Binance exchange to get a discount on fees. Notably, the demand for BNB likely increased when Bitcoin began to surge to $60k.
Many crypto experts think that Binance Coin may continue to go up in value, possibly surpassing Bitcoin price. This does not seem far-fetched when you compare BNB’s market capitalization growth to Ethereum and Bitcoin.
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Why BNB Will Skyrocket: Expert Predictions
With a solid community of supporters and a positive market image, BNB appears to rise in value shortly. WalletInvestor forecasted that BNB could reach $934.134 within a year. Gov Capital gave a lower one-year prediction of $730.944003 but is still higher than the current price. Notably, this is also roughly in line with Trading Beasts' forecast of a maximum of $715.624 by December 2021.
Meanwhile, DigitalCoin is way more bullish, believing that Binance Coin could reach $1,041.19 in 2021. However, this is not the most bullish BNB price prediction there is. The Economy Forecast Agency estimated a low of $1,955 and a high of $2,311 by December 2021.
Should You Invest $1000 in BNB Right Now?
Given its positive outlook and advantages over other digital assets, BNB offers excellent opportunities for traders and investors. But remember that there is no 100% profitable investment. Before you invest in any asset, you must consider its risk-return trade-off and decide on a risk management strategy. That said, investing $1000 in BNB is likely to pay off in the long run.
As the crypto market continues to grow exponentially, leading exchanges like Binance have a lot of room to grow. If institutional investors and banks continue to enter the cryptocurrency market in the near future, it will likely increase the demand for Binance Coin.
Lastly, remember that digital currencies tend to follow bull and bear cycles. So, always keep an eye on the market sentiment, technical indicators, and fundamentals.
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