Binance Coin (BNB) serves as the native token of the Binance exchange, facilitating commission fee payments and enabling trading across over 50 cryptocurrency pairs. Recently, Binance Coin has seen remarkable performance, surpassing the Tether stablecoin to secure the third position. What lies ahead for the price of Binance Coin in the future? This article delves into the historical trajectory of its price and gives Binance Coin (BNB) price predictions for 2023-2030.
What is Binance Coin (BNB)?
Binance Coin (BNB), denoted by the ticker symbol BNB, serves as the exclusive cryptocurrency token utilised on the Binance exchange, currently holding the world’s most prominent cryptocurrency exchange position. Its widespread usage and affiliation with such a major global platform have solidified BNB’s position among the top 5 cryptocurrencies based on market capitalisation, demonstrating consistent growth over an extended period.
BNB holds a crucial role as the foundational fuel that drives the entire Binance ecosystem. As an exchange token, its primary purpose is to cover transaction fees incurred on the platform. Originally built on the Ethereum blockchain, BNB has since migrated to the BNB Chain, which maintains compatibility with the Ethereum Virtual Machine (EVM). The consensus mechanism employed by BNB Chain is known as “Proof of Staked Authority,” which combines elements of both Proof of Stake (PoS) and Proof of Authority (PoA).
To enhance the scarcity and value of BNB, Binance has implemented a repurchasing strategy referred to as a “coinburn.” This initiative involves allocating 20% of the company’s profits to repurchase BNB tokens from the market and subsequently eliminate or “burn” them. The plan will continue until Binance repurchases and removes 50% of the original 200 million BNB tokens, leaving 100 million BNB tokens as the remaining total supply.
Binance Coin Price History
BNB was initially introduced in 2017 and traded within the range of $1 to around $40 for the first three and a half years. However, during the bullish phase of the crypto market in early 2021, BNB experienced significant growth, reaching a peak of $690.93 on May 10, 2021.
Following this peak, the price of BNB remained below $400 for much of the summer. There was a recovery towards the end of the year, with the price surpassing $600 in November 2021. However, the price dropped to $371.37 on January 24, 2022, and declined to $361.23 on February 24, coinciding with Russia’s invasion of Ukraine.
Throughout the following months, the price of BNB fluctuated, reaching a high of $459.81 on April 5, 2022, before plunging to $216.36 on May 12 due to a sharp sell-off in the cryptocurrency market following the de-pegging of the UST stablecoin. While the price briefly rebounded to $336.67 on May 25, it subsequently experienced further declines.
In June 2022, news of an investigation by the SEC regarding Binance’s ICO in 2017 as a potential unregistered security offering impacted the price. BNB fell 4% and briefly dipped below $200 on June 15. Although it recovered to $222.83 the next day, it dropped to a low of $186.22 two days later.
Throughout late 2022 and early 2023, BNB experienced fluctuations in price. It reached a high of $388.72 on November 8 but dropped to $257.44 due to news of mass withdrawals on December 12. By the end of the year, BNB closed at $246.35. There was a partial recovery in the new year, with BNB valued at approximately $275 on January 10, 2023.
However, BNB faced ups and downs in early 2023. It peaked at $337.32 on February 5 but subsequently declined to $265.71 on March 10 due to the collapse of Silvergate Bank. Another market turnaround occurred, pushing the price to $349.96 on April 16 before dropping to around $342.50 the next day.
As of that time, the circulating supply of BNB stood at 155,865,594 tokens, representing the total supply. With a market cap of approximately $53.4 billion, BNB held the position of the fourth-largest cryptocurrency based on that metric.
BNB Price Prediction 2023
After examining the Binance Coin (BNB) price history, it is time to delve into our BNB price prediction for the conclusion of 2023. Currently, BNB is trading around $312 and has faced resistance at the crucial support level of $320. A breakthrough above this level could set the stage for a short-term rally in the upcoming months.
However, Binance has encountered some challenges in 2023. Following the regulatory crackdown on BUSD, Binance’s stablecoin, several countries have begun revoking the cryptocurrency exchange’s licenses, with Australia being the most recent addition to the list. Additionally, Binance is facing a lawsuit from the Commodity Futures Trading Commission, accusing the exchange of violating US derivatives laws by providing derivatives trading to US customers without the necessary license.
While these legal battles pose a significant hurdle for Binance, it is worth noting that the crypto market often embraces anti-establishment sentiments, and some traders may rally behind BNB out of defiance. Nevertheless, regulatory concerns and the ongoing legal issues could impact the price of BNB.
Considering these factors, our BNB price forecast suggests that the coin may reach $500 by the end of 2023, indicating a 53% increase from the current price. However, it is essential to note that cryptocurrency markets are highly volatile and subject to various external factors, so caution should be exercised when interpreting price predictions.
BNB Price Prediction 2024
As we look ahead to the conclusion of 2024, our BNB price prediction becomes intriguing, considering the cooling down of the broader cryptocurrency market and the rise of utility-centric assets.
The cryptocurrency boom in 2021 was primarily fueled by a wave of investors seeking the next big crypto. However, as news about scams, rug pulls, and deceit circulates, much of the initial hype is expected to fade. While this may appear negative, it presents an opportunity for deserving assets like BNB to showcase their potential.
Stablecoins play a crucial role in cryptocurrency, providing stability and value preservation. Following the collapse of Terra Luna and its UST stablecoin, doubts have yet to emerge regarding whether the popular USDT stablecoin has sufficient cash reserves to support its sizable $66 billion market cap. In this context, Binance and its BUSD token could emerge as dominant players in the stablecoin sector. With Binance being the largest exchange by volume and reportedly holding around $70 billion in reserves, the liquidity of BUSD appears more confident. Consequently, investors may seek BUSD as a safe haven for their funds, thrusting it into the spotlight.
Moreover, with FTX facing challenges and investors becoming more cautious about lesser-known exchanges, users could be mass migrating to Binance. This influx of users could significantly boost the value of the BNB token. As market sentiment improves, the price of BNB could reach $700, contingent upon favourable market conditions.
It’s important to note that cryptocurrency markets are highly volatile and subject to various external factors. Therefore, caution should be exercised when considering price predictions.
BNB Price Prediction 2025
Looking ahead to 2025, our BNB price prediction anticipates significant growth for Binance Coin as the Binance Chain and the exchange continue to expand. BNB would need to reclaim its previous highs of around $672 to resume its upward trajectory, which should be achievable given ample time.
Binance founder Changpeng Zhao, known as CZ, has expressed interest in acquiring a bank to bridge the gap between cryptocurrency and fiat. Such a move would likely instil high levels of investor confidence, positively impacting the value of BNB.
Another factor that could fuel BNB’s growth is the regular token burns conducted by Binance, which reduce the overall supply of the token. With a maximum supply of 200 million tokens, quarterly burns will continue until BNB reaches a maximum supply of 100 million. Considering BNB’s current supply of approximately 160 million, these burns alone could boost the price by nearly 40%.
It’s worth noting that BNB reached its all-time high with a supply significantly more significant than its current level. Therefore, surpassing its previous peak is a reasonable expectation. Based on these factors, our BNB price prediction 2025 places the asset at $1,100, positioning it as one of the fastest-growing cryptocurrencies.
As crypto adoption expands and more investors enter the market, demand for assets is expected to increase significantly, driving up prices across the board. Analysts project an annual crypto adoption growth rate of approximately 11.1%.
BNB Price Prediction 2030
BNB is a cryptocurrency implementing a controlled supply reduction strategy as demand increases. This is achieved by systematically reducing a portion of the BNB supply every three months, enhancing the token’s prospects as it gradually becomes a scarce asset.
One of the main advantages of BNB is its versatility as a payment option, offering consumers various choices within the Binance ecosystem. This includes savings programs, DeFi staking, and liquidity generation through the BNB vault. Binance aims to foster a thriving ecosystem around BNB by expanding its potential applications.
The value of BNB, like many other cryptocurrencies, has been affected by the recent bearish trend in the crypto market and concerns regarding Binance’s relationship with the SEC. However, despite these challenges, expectations for BNB remain optimistic due to its growing popularity and expanding use cases.
Looking ahead to 2030, our Binance Coin price projection is bullish, with the potential for the token to reach $2,500. This implies a significant increase of over 650% from the current price and highlights the potential for BNB to continue appreciating as its utility and acceptance expand.
Binance Coin (BNB) Price FAQs
Is Binance reliable?
The answer to this question is Yes. Binance remains one of the most trustworthy and esteemed online cryptocurrency exchanges worldwide, and its prominence continues to grow. It offers a platform to purchase and trade over 150 diverse cryptocurrencies.
Is BNB Coin a good investment?
BNB presents a promising investment opportunity for long-term investors in 2023. However, it’s important to note that BNB is a highly volatile cryptocurrency that can yield significant profits in a short period but also carries the risk of substantial losses. Hence, conducting thorough market analysis and exercising prudence when making investment decisions, aligning them with your financial requirements and goals, is crucial.
How many Binance Coins are there?
As per the most recent data published by CoinMarketCap, there are currently 169,432,897 BNB coins circulating in the market. It is worth mentioning that the platform regularly conducts coin burns, leading to a reduction in the total supply over time. Therefore, the future total supply of BNB is expected to decrease even further.
Are BUSD and Binance Coin the same?
No. BNB functions as a utility token, providing benefits such as payment options and trading fee discounts on Binance Exchange and Binance Smart Chain (BSC). Meanwhile, BUSD is a stablecoin designed to mitigate the cryptocurrency market’s volatility. Investors commonly use it to pair with other cryptocurrencies during trading, and it can also be locked to earn interest.
Based on the BNB price predictions, it can be observed that Binance remains a dominant force in the current cryptocurrency exchange industry. The notable factors contributing to the success of this esteemed token are the IEO model and many recent projects. Compared to smart contract code, Binance Chain’s Launchpad provides a simplified and seamless platform, which plays a vital role in driving the rise of BNB’s price on the exchange. However, the mentioned price movements should not be regarded as investment advice, as cryptocurrency prices are highly volatile.