Since the beginning of the year, the crypto markets have entered a full-swing bull run. In addition to Bitcoin, the market cap of most altcoins is growing as well. For many, this signals an upcoming “altseason”, and one that promises to perform better than any other before it.
From all the altcoins that saw their price appreciate, BNB was one of the best performers. In 2021 alone it has already seen nearly 1000% growth in value and is now placed in the top 5 coins based on market capitalization. As it now seems to be consolidating, we decided to provide an honest BNB price prediction.
To achieve this, we go through some of the features of BNB, as well as Binance Smart Chain. More importantly, we explore some of the recent developments that caused BNB to register this exponential growth and what this might mean for its future.
Finally, we finish up our BNB price prediction with some technical analysis for mid and long-term forecasts. This should help you assess the coin’s value for the upcoming years.
- Short intro to BNB
- Introducing Binance Smart Chain (BSC)
- Latest BNB news and developments
- Binance coin price prediction – Historical analysis
- BNB price prediction 2021
- BNB price prediction 2025
- BNB forecast – What to watch for
- Experts thoughts on BNB prediction
- Wrap up
Short intro to BNB
BNB is an exchange-based token released through an ICO in 2017. Its main goal was to provide funding for the Binance cryptocurrency trading platform. The operation was a success and Binance raised around $15 million during the public sale, with each coin being priced at $0,50.
In total, 200 million BNB tokens were created and distributed through the ICO. However, around 50 million of these have been deliberately destroyed over the years. This is because BNB undergoes a periodic “coinburn” initiated by the founders. The goal is to ultimately reduce the total supply to 100 million, and therefore increase scarcity and value over time. Each consecutive coinburn is expected to burn even more tokens in order to accelerate the timeframe required to reach the supply goal.
So what about use cases?
BNB was initially used to receive discounts when paying trading fees on the Binance exchange. However, the usability of the coin has evolved quite a bit over the years. Today BNB allows users to:
- Participate in Binance’s fundraising platform, the Binance Launchpad, and invest in new and promising tokens.
- Stake BNB on Binance and earn considerable passive income.
- Stake BNB to become a validator on the BSC.
- Pay gas fees for transactions executed on the Binance Smart Chain and Binance Chain.
Introducing Binance Smart Chain (BSC)
To understand our BNB price prediction, we need to talk about the recently-released Binance Smart Chain (BSC).
Launched in September 2020, BSC was created to complement the native blockchain of the BNB token, the Binance Chain. The main goal of this smart contract blockchain is to provide an efficient decentralized exchange (DEX) to compete against Ethereum’s scalability issues.
BSC uses a variation of the PoS consensus mechanism, which allows for extremely fast block times (3 seconds) and minimal fees. The chain introduces a staking mechanism for BNB users, providing a steady passive income for investors.
Furthermore, the BSC was envisioned to provide full cross-compatibility between different blockchains. So, in addition to its interoperability with the Binance Chain, BCS is fully compatible with the Ethereum Virtual Machine as well.
This feature allows for the creation of DeFi protocols, providing a cost-friendly alternative to Ethereum.
Latest BNB news and developments
The release of the BSC didn’t have an immediate effect on the price of BNB. However, since mind-February 2021, BNB’s price has literally exploded, jumping from a humble $33 to $348 at its peak!
To understand these drastic price movements, we need to explore some key developments in the DeFi ecosystem. How this plays out will ultimately influence our BNB price prediction and the future value of BNB in the long run.
Binance’s Changpeng Zhao (CZ) wants to “help” Ethereum – Since the release of the BSC, Binance’s CEO has been sending mixed messages on Twitter.
His official narrative is that BSC aims to alleviate the burden of increased DeFi popularity on the Ethereum blockchain. His tweet depicts BNB as complementary to the existing ecosystem, not aiming to replace it.
However, the community tends to see his statements as white-gloved marketing for BSC. Each ETH praise is cleverly accompanied by gas-price criticism of the original smart contract blockchain.
As expected, I get a bit of “heat” from #ETH lovers given the increased adoption of #BSC. I have no issues with ETH. We support it. We trade it. We futures it. We mine it.— CZ 🔶 Binance (@cz_binance) February 20, 2021
As a #BNB holder, I will of course continue to relentlessly shill #BSC and #BNB.
In a tweet that he later deleted, CZ allegedly joked that “#BNB started as a token on #ETH, but maybe #ETH will end up as a token on #BSC.”
Projects switch from Ethereum to BSC – As the DeFi ecosystem began to grow, so did the woes of the Ethereum network. Because of the increased number of transactions, gas fees have skyrocketed on the original smart contract blockchain, averaging $20 at the moment of writing.
As we previously mentioned, BCS provides very low fees paired with extremely fast transaction validations. Due to this, some high-profile blockchains are participating in a fairly important exodus from Ethereum to BSC.
Successful and upcoming DeFi projects on BSC – In addition to popular dApps migrating from ETH to BSC, some original projects are gaining traction on BSC.
Dexes – one notable BSC DEX that gained massive attention is the copycat Pancake Swap. This blatant clone of popular DEX Uniswap briefly overtook the original for most traded volume in February.
And while Uniswap has regained its first place since then, the fact remains that BSC DEXes are becoming increasingly popular.
NFTs – another important derivative of smart contract blockchains are NFTs, and Binance is not willing to be left behind in this regard. To this end, Binance invested 10.000 BNB ($2.2 million) to mint Binance Punks, a collectible NFT game.
However, the execution of this project was muddled with controversy. The reason? The artwork used for Binance Punks is almost identical to that of the already popular Ethereum-based Crypto Punks.
Warning: There is a project called “Binance Punks” that has taken the art from CryptoPunks and is selling it as a copy on another chain. This is in no way an authorized project.— Larva Labs (@larvalabs) February 23, 2021
Chainlink Oracles on BSC – Oracles are vital intermediaries that ensure trust within the DeFi ecosystem. In December, Chanlink (LINK) announced the usage of their oracles on the BSC, ensuring future success for the blockchain regarding DeFi projects.
All in all, the fundamentals behind BNB and BCS are very solid. They have come out as a serious contender in DeFi thanks to a functional platform, acquired popularity, and low gas fees.
Competing blockchains such as Cardano and Ethereum will have to deliver on their promises if they don’t want to be left behind.
Binance coin price prediction – Historical analysis
Before we delve deeper into our Binance coin price prediction, it’s paramount to have a detailed look at its historical price performance. This will allow us to understand future price movements and make a more accurate BNB price prediction.
BNB price 2017-2020
The BNB token was released right before the 2017 ICO craze. The rising popularity of the Binance exchange at that time helped the coin reach incredible returns.
In a short period of 2 months, the price of a single BNB coin went from an initial market price of $1.5 to an ATH of $25.
However, this 1500% increase was followed by the bear market consolidation, where BNB lost more than 80% value and went as low as $4.5.
That being said, the Binance coin was one of the rare cryptocurrencies that managed to bring considerable profits in 2019. By mid-summer 2019, the price of BNB rose to new highs, reaching $39.5.
The bearish cycle resumed shortly thereafter and BNB dropped to $6.5 following the cryptocurrency market crash in March 2020.
BNB price 2020 – present day
With that said, nothing prepared us for what followed. After entering a steady bullish trend following the COVID19 crisis, BNB gained registered 600% gains during the second half of the year, reaching $45 in January 2021.
And in February 2021, the price went parabolic. In just 3 weeks, candles reached as high as $350, reducing the March 2020 crash to a blip on the charts.
Candles have since retraced 30% from the ATH, and BNB is currently trading around the $250 mark. With that in mind, the coin is still showing more than 500% gains in 2021 alone.
BNB price prediction 2021
Due to the parabolic price action in February, many have become a bit skeptical about a positive BNB price prediction. However, we still think that the coin presents some solid technicals paired with the aforementioned fundamentals.
Since the latest retracement from the $350 ATH, the candles are forming an ascending triangle formation, which is a bullish sign. We expect the ATH to act as a resistance until the end of the spring when BNB is expected to pick up the pace and enter a bullish channel towards new highs.
If everything goes as planned, the candles should race towards the $500 mark, where they can encounter some psychological resistance in the markets.
Considering DeFi on BSC continues its growth, we can expect the price of BNB to pick up once again and resume the bullish cycle towards our target of $1000 by the end of the year.
However, this depends entirely on the mass adoption of the BSC for DeFi. If by July, Ethereum manages to release the long-awaited EIP-1599 protocol to reduce gas fees, this growth could be severely diminished. As such, we could see BNB prices struggle to pass the $500 level and could even retrace to the current ATH of $350.
BNB price prediction 2025
Looking 4 years into the future of a cryptocurrency might seem like a difficult task, due to the ever-changing nature of the blockchain ecosystem. However, there are several factors that help us provide you with a BNB price prediction for 2025:
- By then, another Bitcoin halving would have occurred, which is historically correlated to crypto market bull runs.
- Coin burns should have brought the total supply down to 100 million BNB.
- DeFi has been massively adopted for financial transactions, and BSC is one of the main players in this ecosystem.
Following this reasoning the market cycles and previous price action allow us to place the price at around $5.000 (+1900% growth from today) by the end of 2025.
Considering inflation and mass adoption this BNB price prediction isn’t that far-fetched. At this price level, it would put the BNB market cap at $500 billion, just 2x that of Ethereum today.
BNB forecast – What to watch for
While these Binance coin predictions remain purely speculative, there are certain events that can shift the odds in BNB’s favor, including:
- BSC updates – important updates of the BSC that would add utility and value to the BNB token.
- Binance Launchpad projects – highly coveted token launchpads, such as the recent My Neighbor Alice (ALICE) NFT project. These can drive demand for BNB, creating short price hikes.
- Ethereum’s failure to meet deadlines and scaling expectations – Today, Ethereum remains the most popular platform for DeFi and NFTs. However, if ETH developers fail to release Layer 2 solutions to reduce gas fees, DeFi users and dApp developers could turn to competitors such as BSC.
Experts thoughts on BNB prediction
- Compared to ours, Digital Coin has a much more conservative view in their Binance coin prediction. They place BNB at $450 by the end of 2021 and as low as $815 by the end of 2025.
- Trading Beasts has a more bearish take on the BNB price prediction. They don’t see the coin picking up at all this year, and put it just below the current value by the end of 2021, at around $220.
In this article, we laid out the fundamentals of the BNB cryptocurrency and the driving force behind it – the Binance Smart Chain. We combined these findings and charted our technical analysis to provide you with the following BNB price prediction:
- BNB price prediction 2021 – $950-$1050
- BNB price prediction 2025 – $5000
While BNB has already performed formidably in this bull run, we think it still has room to grow. This summer could be a defining moment for BNB, as Ethereum will be put to the test to provide reasonable gas fees to its users. Otherwise, the dApp and DeFi exodus might come into full effect and drive the price of BNB toward our 4-figure prediction.