Binance was launched in 2017 as a small crypto exchange. Over the past several years it has grown into the largest exchange by trading volume by a wide margin. Additionally, it has created a handful of sub-projects under the Binance name, such as the Binance Smart Chain (BSC), Binance Coin (BNB), Trust Wallet and Binance Academy. Binance has quickly grown into one of the major players in the crypto sphere. However, many are wondering if this growth is sustainable and trying to figure out potential implications for the future price of the BNB token.
What is Binance Coin (BNB)?
The BNB token is used to power the Binance exchange. The token is used for a variety of functions on the exchange, such as trading fees, swaps, loans, payments and travel arrangements. The token itself was initially listed on the Ethereum network in July 2017. However, the token was eventually moved over to the Binance Chain.
Binance uses coin burning for price stability. Every quarter, Binance uses a fifth of its profits to buy back tokens and burn them, or remove them from circulation. By buying back the tokens, it can raise the price. Additionally, since Binance uses its profits to buy back tokens, Binance’s growth as a company is loosely correlated with the price of BNB. BNB also has a myriad of uses on the BSC network, which functions as a major hub of decentralized finance (DeFi) platforms. You can use BNB to pay transaction fees on the network as well as stake it for interest or swap it for other tokens on BSC.
Binance Coin (BNB) Market Position
In early 2023, BNB trades for around $250, with a market capitalization of around $40 billion. The token’s all-time high in price was just over $690 in May 2021. The all-time high market cap was just over $105 billion in November 2021. Some of Binance’s major competitors are Coinbase and Huobi Global.
David Cox’s Bullish Long-Term Binance Coin (BNB) Price Prediction
David Cox is a finance and crypto writer for CryptoNewsZ. He sees high trading volumes on Binance, as well as the burning process as a great foundation for the future of Binance. Cox is also a fan of Binance’s Launchpad program, which allows users to invest in initial coin offerings (ICOs) through the platform using the BNB token.
Cox sees lots of demand drivers for BNB, as well as solid business practices that will keep the price of the token stable and perhaps rising.
Arslan Ali’s Bearish Long-Term Binance Coin (BNB) Price Prediction
Arslan Ali is a technical crypto and forex writer for Business2Community. He sees several issues with the company and is bearish on the future of BNB.
In 2019, Binance invested in FTX, another crypto trading platform that failed towards the end of 2022. This situation brought about rumors of potential money laundering charges for Binance, though there has yet to be a determination from the U.S. Department of Justice. Finally, the U.S. Securities and Exchange Commission (SEC) is investigating Binance for the 2017 ICO of BNB, as the SEC believes that it may have been an illegal issuance of a security.
2020s Binance Coin (BNB) Price Predictions
In the past couple of years, financial gurus online have begun using artificial intelligence (AI) to generate 10+ year cryptocurrency predictions. While these forecasts should be taken with a grain of salt, they can show a feasible range of outcomes or show what the general market consensus looks like.
2023 Binance Coin (BNB) Price Prediction
By the end of 2023, WalletInvestor.com predicts a price of around $450, while PricePrediction.net is a bit more bearish, projecting potential lows reaching $44. The lack of agreement between these two predictions is indicative of reliability.
2024 Binance Coin (BNB) Price Prediction
Changelly has an average estimate of $554 for BNB in 2024, while CryptoNewsZ predicts the token to trade between $420 and $550 in 2024.
2025 Binance Coin (BNB) Price Prediction
In 2025, PricePrediction.net sees the price of BNB floating around $380, and WalletInvestor sees a high of around $475.
2026 Binance Coin (BNB) Price Prediction
Both WalletInvestor and TradingBeast predict BNB to rise in 2026, reaching $462 and $522, respectively.
2027 Binance Coin (BNB) Price Prediction
Changelly sees the price of BNB skyrocketing to an average price of $1,650 in 2027, while Trading Education is even more bullish, projecting an average price of nearly $5,000.
2030 Binance Coin (BNB) Price Prediction
By the end of the decade, PricePrediction.net sets a price prediction of $462, while WalletInvestor is much more bearish, projecting a downturn to around $80. As you can see, these predictions are all over the place and should not be taken as fact.
Where to Buy Binance Coin (BNB)
The easiest place to purchase Binance Coin is on the Binance website or app. If you are in the U.S., you will need to use the separate U.S. arm of the exchange, Binance.US. Both exchanges offer the direct purchase of BNB with fiat currency, as well as swaps with a large list of other tokens. Binance is the largest crypto exchange in the world and is well known for it's security of user funds.
To get started on Binance, create an account using an email and then verify your account with some basic documentation. You can then fund your account and begin trading.
How Long Will It Take for Binance Coin (BNB) to Reach $1,000?
A major price target that many BNB investors have is $1,000. While several AI forecasting tools predict the token to reach $1,000 eventually, this increase is unlikely to occur anytime soon. As of right now, a price of $1,000 for BNB would equate to a market cap of over $160 billion, larger than that of major companies such as Morgan Stanley and Netflix. However, with the burning system in place, the price could appreciate and the market cap could stagnate or drop.
A more reasonable price target might be $500. While this is nearly double the current price, it is still below previous all-time highs.
Where to Store Binance Coin (BNB) Safely
Best Hardware Wallet: Ledger
Hardware wallets are physical devices that store the keys needed to send crypto and are considered the safest way to store crypto. Ledger offers Nano S and Nano X models. The Nano S is the basic hardware wallet offering, with just the necessary features. The Nano X supports greater ease of use, with Bluetooth connectivity and a larger screen. All Ledger wallet ssupport more than 1,800 cryptocurrencies including Binance Coin, Bitcoin, Ethereum, Dogecoin, Ripple and all ERC-20 and BEP-20 tokens.
Best Software Wallet: MetaMask
Software wallets store private keys online and are password-protected, which is not as safe as a hardware wallet but is still secure. MetaMask is the leading software wallet and offers compatibility with a large number of blockchains, including BSC. It is also easily usable through a Google Chrome extension.
Bonus Section: Keep an eye on Binance’s profits, as these are used to buy back tokens and can raise the price.
Current Crypto Prices
The crypto markets are all over the place, with some tokens collapsing because of FTX’s recent insolvency issues and others surging.
If you want to see where your favorite tokens are, make sure to check out Benzinga’s constantly updating price table.
So, is Binance Coin (BNB) a Good Investment?
Binance has its pros and cons. It is the largest exchange by volume and is expanding its presence in the crypto space. Conversely, it is under investigation by multiple regulatory agencies. A decision to invest in BNB should be made based on your personal risk tolerance and beliefs about the outcome of the investigations.
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