Will Binance Coin Make Me Rich?

BNB could be the best wealth-maker of this year

Last Updated October 5th 2021
6 Min Read

Crypto experts believe that value of Binance Coin will increase in price over time. This is indeed a good method that could make you money by buying and holding Binance Coin. 

Binance Coin (BNB) is an excellent investment choice. Today, Binance Coin is one of the largest cryptocurrencies by market capitalisation and doesn’t look like it’s stopping anytime soon.

Investing in BNB could make investors very rich. With the strength of the Binance Exchange behind BNB, the crypto’s price could experience a huge growth in the near future. 

According to experts, Binance Coins is extremely likely to hit $950 by the end of 2022, $1,100 by the end of 2023, $1,350 by the end of 2024, and an impressive $1,500 by the end of 2025.  

What does Binance Coin do?

Binance Coin was created in 2017 by the Binance Exchange as a utility token that could be used to get a discount on fees when trading. Over the years it has steadily increased its value.

But that’s not all BNB has to offer prospective investors. There’s a lot more going on behind the scenes.

In September 2020, Binance launched the Binance Smart Chain (BSC), a parallel chain that allows DeFi applications to be built on the Binance network.

Today, the Binance Smart Chain is second with 41 DeFi projects. Meanwhile, Ethereum has 219, according to DeFiprime.com.

What Is the Price of Binance Coin?

$440 according to CoinMarketCap at the time of writing. BNB has the third-largest market capitalisation ($73 billion).

The price of Binance Coin has done tremendously well in 2021. BNB started the year at approximately $37.62 per coin and has since reached its new all-time high of $690.

This is miles away from where Binance Coin originally started at $0.102738 on the 31st July of 2017.

Early on BNB started to make big gains, quickly surpassing $1 by August 2017, just a few months after its release.

The price of BNB has historically been pretty volatile, like most other cryptos but steadily rising. However, it wasn’t until February 2021 that we saw a huge spike in price, which BNB has managed to maintain.

On the 1st February 2021, BNB was worth $46.43, and by 22nd February had reached $271.64, an unprecedented increase!

But it didn’t stop there. After a momentary dip in price, BNB began to rally upwards again, reaching its all-time high in May 2021.

Read Also: Is Binance Coin Worth Buying 

Why Is Binance Coin Worth So Much?

Because of the Binance Smart Chain, Binance Coin has been surging in 2021. It became incredibly popular in February 2021 as various DeFi projects started on the blockchain.

Many believe that this move to the BSC was because of high transaction fees on the Ethereum blockchain. According to YCharts, the average gas price on Ethereum is $83!

On top of that, Ether fees have been historically volatile too. At one point in 2020, Ether fees spiked over 600%, according to CoinDesk.

Another key reason Binance Coin is worth so much right now is because of the Binance Exchange. Increased activity at the Binance Exchange usually means that more people are using the token. And given the current bull market, this is likely increasing the demand for BNB, increasing the price.

Finally, more recently, Binance announced that it will start offering ‘stock tokens’ for Apple and Microsoft. As Samuel Haig of the Cointelegraph explains:

“The tokens will allow users to trade fractionalized units of the share tokens, with minimum trade sizing set at one one-hundredth of a token”.

This could also increase BNB usage in the coming months.

Don't Miss: Binance Coin Price Prediction - Will BNB Rise in Value?

Is Binance Coin a Good Investment?

Binance Coin is likely a very good investment right now. Many price analysts believe that the price of BNB will continue to rise in the coming months and years.

WalletInvestor forecasts that Binance Coin could reach $950 by the end of 2022 and $2,342 in five years. Meanwhile, The Economy Forecast Agency predicts that BNB could reach $929 by the end of 2022.

Elsewhere, Gov Capital do not see Binance Coin BNB reaching higher than $690 by the end of 2022. Coin Price Forecast is more bullish, forecasting $906 by the end of 2022.

What Will Binance Coin Be Worth In 2025?

Binance Coin is expected to increase by 2025. DigitalCoin predicts $1,335, The Economy Forecast Agency predicts a low of $1,213 and a high of $1,395, and Coin Price Forecast predicts $1,714 by the end of 2025.

What Is The Future of BNB Coin?

The future of BNB looks good if Ethereum transaction costs remain high and traders continue to use the Binance Exchange.

More recently, Binance announced that it will start offering ‘stock tokens’ for Apple and Microsoft. As Samuel Haig of the Cointelegraph explains:

“The tokens will allow users to trade fractionalized units of the share tokens, with minimum trade sizing set at one one-hundredth of a token”.

This could also increase BNB usage in the coming months as it may increase usage of the token on the exchange.

However, bear in mind that Ethereum is in the process of upgrading to proof of stake. Once completed, transaction fees could be slashed which could encourage many DeFi services to return.

Furthermore, the rise of DEXs (decentralised exchanges), could also pose a threat to BNB in the future. This is because the Binance Exchange is a centralised exchange - they are the middleman.

With DEXs there are no middlemen taking fees for fulfilling transactions. Over time, we may see more DEXs and less centralised exchanges.

So, while BNB is likely a great investment for the time being, investors should be cautious of future developments.

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Key Points

  • BNB started the year at approximately $37.62 per coin and has since reached its new all-time high of $690.
  • The Binance Smart Chain is primarily why BNB has increased so much in value recently. DeFi projects are moving away from Ethereum because of high transaction fees.
  • BNB also benefits from trading activity at the Binance Exchange where it is used as a discount token on fees.
  • The Binance Exchange will soon offer ‘token stocks’ for Apple and Microsoft, which could mean more BNB usage.
  • Gov Capital do not see BNB reaching higher than $690 by the end of 2022. And WalletInvestor is the most bullish, forecasting $950 by the end of 2022.
  • Decentralised exchanges (DEXs) could be a major threat to the Binance Exchange over time.

Read More:

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