Binance came out with its token in the middle of 2017 and ever since then, it has had its ups and downs. Originally known as Binance Coin, BNB was designed to function as a utility token for payment of transaction fees such as utility fee, listing fee, exchange fee.
The coin is backed by the scientific algorithm and robustness of the Ethereum network, ERC-20.
As of November 2021, BNB is now the third-ranking cryptocurrency.
In this article, we will look into a detailed analysis of the coin, its price predictions and what to expect from the network.
What Is BNB?
Binance coin is an internal cryptocurrency used as the native token of Binance exchange. This altcoin, BNB, acts as a utility token. BNB is a volatile altcoin, like every cryptocurrency. It has the same features as normal altcoins, and hence, crypto users can use it for other asset exchanges.
Binance Coin was built on the ERC20 token, operating on the Ethereum blockchain for a short while before moving to its blockchain. It allows users to earn money on every transaction on the Binance exchange platform.
BNB has different functions as a cryptocurrency token. They are as follows:
- It functions as a trading asset.
- It reduces commissions on the platform.
- It is used to pay for goods on Binance Coin compatible sites.
Traders can use BNB to reduce commissions on the Binance exchange as it is meant for that purpose. Since its launch, the discount has been reduced by half every year. It is intended to run for five years, and hence, the feature is valid until 2022.
- 1st year – 50%
- 2nd year – 25%
- 3rd year – 12.5%
- 4th year – 6.75%
- The final year will be 2022 – the discount ends.
BNB is known for one specific uniqueness, the regular currency burn. This steady burn is an irreversible decrease in the availability of units in circulation.
Quarterly, Binance exchange purchases BNB tokens from the crypto market with the funds accumulated from the 20% transaction fee, then burn the coin using the Proof of Burn Protocol. This plan automatically reduces the BNB coin from its initial value of 200 million tokens to 100 million tokens.
BNB Price Analysis
BNB has exceeded many expectations. The coins ICO was unveiled in 2017 with the token distributed among various participants, including Angel investors and the Binance founding team. While the founding team received 40% (80 million BNB), Angel investors received 10% (20 million BNB) and the public sales were 50% (100 million BNB).
The BNB coin opened trading at $0.1 in July 2017, before rising above $1 in September that same year. There was a price surge in the coin in December when the BNB coin rose above $5, and by January 2018, the coin reached an all-time high of $22 before crashing below $10 in March 2018.
The BNB coin’s value continued to fluctuate until it traded below $5 in December 2018 (the time the crypto market crashed). However, it bounced back by the first quarter of 2019 when it went above $20 and surpassed $30 by the third quarter of the year.
In 2021, the coin opened trading at $51 and by February this year was trading above $200.
The shock came on 5th March this year when it reached an all-time high of $675 – leading to various future bullish forecasts on the coin.
Amid the high expectations on the coin, came the tsunami on 23th May, when the crypto market witnessed a dip, it trading at $262 – losing over 50% of its value.
After the crash, the coin started its recovery phase and bounced back above $600 in November 2021.
There have been various speculations about the BNB price hitting $1000 in future.
BNB has a lot of potentials, inspiring a lot of investors and crypto traders. BNB Price Prediction is a way of analysing the future outcome of the coin. These predictions can influence your decision of possible investments, both long term, and short term. At this time of the year, as it is coming to an end, it’s normal for most cryptocurrency platforms to analyse and predict the possible outcomes of some cryptocurrencies. They aim to improve and influence the investment decision regarding the token.
Binance Price Prediction For 2022
According to Tradingbeasts, BNB price is capable of reaching a maximum price of $685 by the first quarter of 2022. And by the end of 2022, the coin could trade above $700. However, their long-term prediction (3 years) is slightly bearish. They see the coin trading slightly above $600 by the end of 2024. So, we could say that they are bullish in the short term and bearish in the long term. The platform used its price prediction algorithm in its forecast.
Digitalcoinprice is another prominent site to watch out for when it comes to cryptocurrencies price predictions. The site is both bullish in the short and long term. According to their BNB price prediction, they see the coin trading above $1000 in 2022. And by 2024, it will be trading above $1500. In 5 years (2026), the coin will be trading above $2000. So, they agree that BNB will be a profitable long- and short-term investment.
BNB Coin FAQ
How high Could BNB go?
According to technical analysis from cryptocurrency experts and gurus, the direction in which Binance coin, BNB, will move is dependent on specific circumstances. Examples of such events include market speculations and the various innovations in the Binance ecosystem. The Binance platform is currently evolving and developing various products and services, such as the NFT marketplace, which will also positively influence the price of the coin.
The above predictions from cryptocurrency platforms show that the price of BNB coin could also rise as far as $2000 in 5 years. So, if you are thinking of investing for the long term, BNB is a good choice and very profitable.
How To Mine BNB
BNB cannot be mined. The 20 million initial coins originally in circulation were pre-mined before an initial coin offering (ICO), with a price set at $0.10 per BNB. Although the total BNB coin released during its launch was 200 million coins, its numbers have declined due to the regular coin burn events.
Binance has successfully carried out 12 quarterly burns. They recently announced their 13th quarterly BNB burn. The exchange platform got rid of a total number of 2,2253,888 BNB coins which is equivalent to $68 million.
According to the platform, they do this quarterly burn to maintain healthy token circulation and also, slow down any inflation rates that might happen due to high supply.
How To Invest In BNB
Most people have been asking one specific question; Is BNB a good investment? And, how do you invest in it?
Firstly, you have to choose a platform like Binance, Kraken, etc. After, buy your BNB for any purpose such as trading or holding.
Before purchasing the coin, you will need to have a wallet to store your BNB. There are different types of wallets; online and offline. Do research on which is better. Although, it is advisable to use offline wallets for security reasons.
Equally, you can use the Binance wallet to store your coins.
When you want to buy BNB coin, you should definitely look at the price chart on the cryptocurrency market to try and figure out the right time to purchase the coin.
BNB vs Bitcoin
BNB is one of the altcoins that has gained many supporters in the cryptocurrency community.
Currently, BNB has over $100 billion in market cap, overthrowing Litecoin to become the third top cryptocurrency in the crypto space. With the current impressive growth, there are speculations of it exceeding Ethereum in future. Do you think that’s possible?