Why Binance Coin Would Be A Good Investment?
Why is Binance Coin so high?
Binance Coin (BNB) was created in 2017 to make paying for fees at the Binance Exchange easier. Today, if used to pay for trading fees at the exchange, traders get a 25% discount.
BNB enabled the Binance Exchange to become the world’s largest crypto exchange, dwarfing rivals Coinbase, Huobi, and Kraken in terms of 24-hour trade volume.
Binance Coin stands out as an excellent investment because of its many use cases. This is a stark contrast to cryptocurrencies that make big claims and are yet to deliver anything.
Let’s look at some of the reasons why Binance Coin should be one of the top coins you should consider investing in.
Binance Coin Price History
Binance Coin is worth $350 at the time of writing. With a market cap of $57 billion, it is the fifth-largest cryptocurrency after Bitcoin, Ethereum and Tether.
In the space of four years, Binance Coin has gone from $0.10 per coin in its July 2017 ICO to its all-time high of $690.93 on the 10th of May 2021. It’s a humongous rise in price.
It should also be noted that Binance Coin did not benefit from the 2017 bull run that saw many cryptocurrencies follow Bitcoin to new highs.
That said, considering BNB started at around 10 cents per coin, it did manage to close 2017 at a price of around $8.63. Traders who bought into Binance Coin’s ICO made a lot of money by the end of the year.
But then came 2018, a bombshell of a year for cryptocurrency. While BNB briefly managed to reach $22 in January, it had dropped sharply to around $6.70 by February.
And after a rebound to $17.25 by June 2018, BNB only haemorrhaged value, slowly sinking to $6.10 at the end of the year.
2019 pulled a similar stunt, rising nicely midway through the year to a new high of $38.82, but was followed by a constant decline. But this time it wasn’t the same - BNB managed to end the year higher than it had started, ending at approximately $13.73.
2020 was much more positive, characterised by a slow and steady upwards rise. Even the outbreak of the coronavirus couldn’t stop BNB’s upwards momentum.
After a steep decline in March, by September 2020 BNB was once again hovering around the $30 mark. December 2020 was a particularly good month as the coin broke out to $37.38 by the very end.
2021 became BNB’s best-ever year as it briefly became the third-largest crypto by market cap after Ethereum.
Gradually BNB moved up to newer and newer highs, passing the $50 mark. Then February came and BNB’s price kept exploding and by May 2021 it had reached its most recent all-time high.
Shortly after, Tesla announced that it would drop Bitcoin and BNB’s price fell. However, it is still much higher than at the beginning of 2021.
Don't Miss: What Will Binance Coin Be Worth In 2025?
Why Did The Binance Coin Go Up?
Binance Coin went up at the beginning of 2021 primarily because of the Binance Smart Chain (BSC).
The BSC is a chain that works parallel to the Binance Chain and supports smart contracts, dApps and DeFi projects.
Though launched in September 2020, the BSC didn’t gain major traction until February 2021 when Ethereum transaction fees became very volatile.
At times transaction fees would skyrocket, making it very difficult for dApps to function on the Ethereum network.
The inconvenience convinced many projects to jump to the Binance Smart Chain instead, which is cheaper and less volatile to use.
Further to this, Binance Coin benefited from Bitcoin’s bull run, which likely increased trading at the Binance Exchange, and therefore demand for BNB.
And finally, more than half of all circulating BNB tokens are staked. This means that a lot of tokens are not moving, making it harder to get hold of Binance Coin and increasing scarcity.
Read Also: Will Binance Coin Make Me Rich?
Binance Coin Price Prediction
Binance Coin could reach highs of $936.94 by November 2021 according to Cryptocurrency Price Prediction.
However, most price forecasters are more cautiously optimistic foreseeing Binance Coin returning to somewhere between $400 and $600 by the end of the year.
WalletInvestor is one of the most positive predictors of Binance Coin’s price in 2021, believing that by December 2021 it could reach $550.
DigitalCoin gives a close prediction of $489 by the end of 2021. Next is The Economy Forecast Agency with their prediction of $434 at the highest by December, and slightly lower is Coin Price Forecast, which estimates $411 by the end of 2021.
Is It Worth Buying Binance Coin?
Yes, with the backing of the influential Binance Exchange and a firm grip on the DeFi market, BNB is definitely worth buying.
Binance is constantly looking for new ways to leverage BNB. Soon, it may have more use cases than any other coin.
Aside from BNB’s use at the Binance Exchange and on the BSC, it is becoming increasingly popular to stake.
Staking is where crypto holders lock up their coins to secure the network and receive rewards, i.e., more BNB.
According to Staking Rewards, 70.81% of BNB is staked. In terms of the value of the locked tokens, BNB is the 9th largest.
Binance also launched the Binance Visa Card which allows holders to convert their BNB into fiat currency when they use it to make a transaction. It has enabled BNB to be used virtually anywhere on the planet.
The more use cases there are for BNB, the more demand there will be for the coin, which could positively affect the price.
eToro – Best Exchange to Buy Binance Coin BNB
eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.
Virtual currencies are highly volatile. Your capital is at risk.
- Binance Coin was created in 2017 by the Binance Exchange. Traders get a 25% discount on trading fees when using it.
- Today, Binance Coin is the fourth largest coin by market capitalisation after Bitcoin, Ethereum, and Tether.
- In four years, BNB has gone from $0.10 per coin to its all-time high of $690.93 on the 10th May 2021.
- BNB did exceptionally well in 2021 because of the popularity of the Binance Smart Chain.
- Binance Coin could reach highs of $550 by December 2021.
- With a strong DeFi community and the Binance Exchange behind BNB, it’s definitely a good investment.
- Increased use cases for BNB will likely increase its value.