The strong performance of cryptocurrencies in recent years has attracted many investors. If you are involved in the cryptocurrency sector, you’ve probably heard about Binance. It was founded in 2017 and is currently the largest cryptocurrency exchange in the world.
Binance (BNB) Fundamental Analysis
Changpeng Zhao, a Chinese entrepreneur, is the CEO of Binance, the world’s largest cryptocurrency exchange. Binance Coin (BNB) is the Binance exchange’s main cryptocurrency. The Binance platform enables cryptocurrency traders and investors to pay fees and trade using BNB.
This coin is used to function on the Ethereum blockchain using the ERC-20 standard. When Binance was operating as an Initial Coin Offering (ICO), the coins were issued at 2,700 BNB per Ethereum Coin (ETH) or 20,000 BNB per Bitcoin. Thus, bringing the price of one BNB close to $0.15. Given the sale of 100 million coins to the general public, the offering was expected to raise over $15 million in order to improve the Binance platform, which was also debuted in 2017 on the Ethereum blockchain platform.
As digital currencies evolved, regulators began questioning their use for illegal operations such as money laundering, ransomware payments, or other criminal activity. They voiced concerns about the degree of anonymity these cryptocurrencies provided. Because of these regulatory concerns, Binance has decided to ban all US-based users in 2019. However, the same year Binance, in collaboration with BAM Trading, launched Binance.US, allowing US users in most states to trade in BNB and other currencies.
Changpeng Zhao launched the Binance Coin in July 2017, and its development can be divided into three market cycles.
The First Market Cycle
On November 17th, 2017, BNB traded at a very low price of $0.50. However, in just 67 days, BNB had grown to be worth more than $25.
The Second Market Cycle
On June 22nd, 2019, BNB hit its all-time high value of $39.59. The currency has grown by 861% in the last 197 days since the given date.
The Third Market Cycle
Now is the third market cycle of BNB, and it is currently worth about $220.23 with a market capitalization of more than $35 billion.
How Does Binance (BNB) Work?
Essentially, BNB comes with two groups of functions.
It is, as previously mentioned, the Binance exchange’s native cryptocurrency and functions as an exchange token. This cryptocurrency offers a variety of applications, and users can choose how to spend their Binance Coins. For example, BNB Coin can be used to make online and in-store purchases. People also use BNB to cover travel fees, create smart contracts, lend money, and many other things. Surprisingly millions of coins have already been used in such cases.
BNB Use Cases
Binance Coin (BNB) has several uses. It can be used for two different categories of functions, with the following use cases:
Binance Native Token Exchange:
- Users can pay the platform’s fee using BNB.
- BNB is the most important trading pair on the Binance decentralized exchange.
- It can be used in a broad range of apps, including DApps and games powered by the Binance chain.
- Can be used in Binance Liquidity Swap.
- Binance Charity allows users to donate BNB.
- People who pay their trading fees with BNB might receive up to a 25% discount.
- People can use Binance Pau or Binance Card to make in-store and online purchases for services and goods such as flights and hotel bookings, virtual gifts, e-gift cards, and more.
Binance (BNB) Burning
Binance spends a part of its quarterly revenue on buying back and burning Binance Coins, thereby destroying them.
Binance has been burning coins every quarter since 2017 and will continue until it buys and burns 100 million BNB or half of the total supply. This process causes the Binance Coin’s supply to be reduced, affecting its rarity and potentially lowering the asset’s value. Binance has another platform known as the BNB Pioneer Burn Program, which assesses cases when BNB holders have unrecoverably lost BNB and compensate them by reducing the amount from the next BNB burn.
Binance, which began operations in 2017, has grown to become one of the top players in the cryptocurrency market.
However, regulatory issues emerged against Binance in 2021. Last year, Binance faced regulatory action from the Cayman Islands, Japan, Malta, The Netherlands, Malaysia, The United Kingdom, and Thailand. Because it lacked the required authorization, registration, or license, the UK’s Financial Conduct Authority ordered Binance to suspend all regulated operations in the UK in June 2021. Malaysian authorities filed a criminal complaint against Binance the following month, August 2021, accusing it of acting as an unlawful virtual asset service provider (VASP).
Binance announced the exclusion of US users from its primary exchange in 2019, despite the fact that the same year they launched Binance.US, a platform suited to US users.
Binance has announced that in response to heightened regulatory scrutiny, it plans to create new offices worldwide and apply for licenses in each area it operates. The platform is beefing up its compliance personnel and skills and phasing out or prohibiting a number of high-risk items.
The initial total supply of BNB tokens was 200 million. However, the supply has decreased due to Binance’s regular burn process. The total supply of BNB is now 163,276,975. Out of these:
- 50% go to Initial Coin Offering
- 40% The Founding Team
- 10% Angel Investors
Binance uses a buyback and burn method to burn one-fifth of the overall supply. This contributes to price increases and makes BNB an appealing asset. The original ICO offered a total of 100 million BNB.
Binance (BNB) Price Analysis
According to CoinMarketCap, Binance (BNB) was trading at $0.10 immediately after its launch in 2017.
In January 2018, months after it launched, BNB experienced a bullish rise and reached $22.17. From then forward, the price was not stable at all. However, it never got lower than $5. Binance followed this price trend until 2021. In the first quarter of the year, BNB exceeded all expectations and reached a price of $209.57. It continued to increase and eventually reached its all-time high of $690.93 in May 2021. BNB is currently trading at $220.23, meaning it had a 68.12% decrease from its all-time high.
Binance has a market capitalization of $35 billion, ranking #5 in crypto market rankings.
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Currency Prediction Binance (BNB) Price Prediction
Because of its previous bullish trends, we expect the price of Binance to increase in the coming years.
Currency Prediction Binance (BNB) Price Prediction 2022
Binance (BNB) started the year quite bullish with a price trading at $498.43. However, the price has decreased and is currently trading at $220.26. Furthermore, following the crypto market’s rise in 2021, we expect the Binance exchange to continue attracting new users this year, driving more demand for BNB. According to our short-term BNB price prediction, we expect a move above $500 by the end of this quarter. Thus, Binance Coin might reach a high of $573.21 by the end of the year, a low of $313.47, and a closing average of $506.35.
Currency Prediction Binance (BNB) Price Prediction 2023
The Binance Smart Chain will become a strong competitor to the Ethereum network in 2023, as its DeFi ecosystem grows faster than Ethereum’s. By 2023, we at Currency Prediction predict a further rise, with BNB/USD reaching a high of $723.15, a low of $451.17, and an average price of $598.09. According to our short-term predictions, Binance Coin might end the year at $607.54.
Currency Prediction Binance (BNB) Price Prediction 2024
The halving of Bitcoin in 2024 will not only result in a general market rise but also increase activity on the Binance exchange, fueling further demand for BNB. We believe that the price of BNB can start at $608.20 in 2024. Because of that, it has the potential to reach a high of $1,128.75 and a low of $560.03. We suggest that BNB might end the year at $1,005.68, with an average price of $982.40.
Currency Prediction Binance (BNB) Price Prediction 2025
As Binance’s usage grows, Binance Coin can become one of the most valuable currencies to own by 2025. According to our long-term BNB price prediction, the price of one BNB might rise significantly in 2025, reaching an all-time high of around $2,394.80, a low of $849.95, and an average target price of $1,788.44.
Currency Prediction Binance (BNB) Price Prediction 2026
BNB might experience higher demand in 2026 as services like their Visa cards grow more popular and make cryptocurrency ownership more accessible. We predict that the price of BNB can start at $1,805.71 and end at $2,855.85, with a maximum price of $3,947.23 in between. On the low end, our BNB/USD price prediction suggests that a low of $1,468.96 is possible, though BNB is more likely to have an average price of $2,536.82 for the year.
Binance (BNB) Market Price Prediction
Below are the price predictions for BNB by different trading websites.
Priceprediction.net expects the maximum price of BNB to reach a price of $631.96 and an average of $564.97 by the end of 2022. Their prediction for the next five years is quite optimistic. They suggest that BNB might reach a maximum of $4,154.05 and an average price of $3,553.45 in 2027. By 2030, BNB is expected to reach new heights and exceed $11,000.
Digital Coin Price
Digital Coin Price predicts that BNB may reach $430.34 by the end of 2022. They suggest that the Binance Coin will increase, though in slower steps. By 2027, BNB is expected to hit a maximum price and end the year at $869.08. 2030 might be the year that BNB hits $1,440.67, being near to reaching $1500.
Technewsleader is very optimistic about BNB’s future. They predict that BNB might close 2022 with a maximum price of $630.60. Moving on to 2027, its highest price can be $4,439.39 with a low of $3,680.20. According to the Technewsleader, 2030 might be the year BNB reaches $10,000 and exceeds it. They suggest a maximum price of $12,970.01 and an average price of $10,713.36 by the end of 2030.
Conclusion: Will BNB Hit $1000?
The Binance Coin (BNB) has a lot of potential. If we look at its previous price trends, we can see how it quickly increased and the bull run it went through.
Having only five years actively in the cryptocurrency market, BNB has exceeded all expectations. Because the crypto market is going through a fall, the decrease in the price of BNB was inevitable and the coin is currently trading at $220.23. However, after thorough research and market analysis, we can conclude that the Binance Coin is a coin that promises.
Many crypto experts believe that BNB will reach $1000 in the short run, 2-3 years. According to us, Binance Coin might reach $1000 by the end of 2024. However, it may take time until this price stays stable.
How To Buy Binance Coin (BNB)?
You can buy Binance Coin in any of the decentralized exchanges you want. However, we suggest you do some research before deciding to purchase BNB or any other coin. We are going to show you three steps on how to buy BNB.
Step 1: Create An Exchange Account
The first step you should take if you want to invest in Binance Coin is to create an exchange account. There are a lot of exchanges that support BNB, with Binance being the biggest one.
Creating an account in Binance is relatively straightforward. All you have to do is enter your personal information: Name & Email.
Once you have opened the account, the next step is to verify it. You can do so by providing your ID and a photo of yourself. The verification process can take up to 24 hours.
Step 2: Fund Your Account
After creating your account and verifying it, the second step is to fund it. Usually, funding your account is the easiest part. Binance supports three different ways when it comes to purchasing BNB:
- Through Stablecoins
- Credit/Debit Card
- Trading BNB (only if you have other cryptocurrencies)
Furthermore, Binance also has some third-party providers that you can use to purchase crypto (in this case, BNB). Some of these third-party providers include ADVcash, Simplex, and Bifinity.
Step 3: Buy BNB
Now that you have created and funded your account, the last step is to purchase your BNB coins.
You can do so by clicking on the “Buy Crypto” link on the Binance navigation and then choosing your preferred payment method. After deciding what payment method you want to use, enter the amount of BNB you want to purchase and execute the payment.
Frequently Asked Questions (FAQs)
Is BNB A Good Investment?
Thousands of investors have been drawn to cryptocurrency recently due to its amazing performance and lucrative returns. Now, Binance Coin is one of them. BNB is a fantastic alternative if you want to invest in cryptocurrencies other than Ethereum and Bitcoin now that the crypto industry is growing.
Why Should I Buy BNB?
Using BNB lowers trading fees, and the token can generate interest in various ways. BNB holders can earn up to 10% APY depending on their risk tolerance and how long they choose to keep their coins’ locked up.’
Can BNB Reach $50,000?
Binance Coin is a very promising coin. However, even though being so, it is not expected to reach $50,000, at least not by the end of 2031. If the market is in BNB’s favor and the prices go according to our expectations, the coin might reach $50,000 in the long run.
- Changpeng Zhao is the CEO of Binance and the creator of the Binance coin.
- BNB was used to function on the Ethereum blockchain.
- BNB’s development is divided into three market cycles.
- Binance Coin is currently trading at $220.23.
- Binance burns its coins quarterly every year.
- BNB is expected to reach $1000 by the end of 2024.