Bancor price prediction: What’s in store for the DEX?
The decentralised trading protocol has seen the value of its BNT token fall 75% since May 2021
- What is Bancor (BNT)?
- Impermanent Loss
- How has Bancor (BNT) performed over time?
- BNT price prediction – expert opinion
As cryptocurrencies have surged in popularity, the demand for decentralised exchange (DEX) platforms, where investors can trade crypto coins for low fees and at competitive prices, has also grown.
First developed in Israel in 2017, Bancor is an “on-chain liquidity protocol that can be implemented on any smart contract-enabled blockchain”. It is also one of the earliest examples of an automated market maker (AMM) DEX.
Small- and mid-cap coins are often plagued with illiquidity. Bancor was one of the first companies to develop smart token and smart contract technology, which paved the way to solving these liquidity problems.
Bancor used to be one of the largest exchanges, though its traction has since slipped significantly due to the rise of competitors such as dYdx, Uniswap, PancakeSwap and Serum DEX.
While the coin has not performed well recently, what is the latest Bancor price prediction?
Before looking at forecasts, let’s do a quick overview of the native token, BNT.
What is Bancor (BNT)?
According to its website: “Bancor is the first decentralised trading protocol, empowering traders, liquidity providers and developers to participate in an open financial marketplace with no barriers to entry. No one needs permission to use the open-source Bancor Protocol.”
Additionally, Bancor created “the first-ever network of AMMs on the blockchain”. In automated market makers (AMMs), liquidity pools allow digital assets to be traded without permission and without a centralised structure – so no single entity controls the system. This reflects the ethos behind decentralised blockchain technology.
In liquidity pools, liquidity providers artificially create liquidity by being paid a fee in exchange for depositing their assets to contribute to liquidity. AMMs use a mathematical formula to ensure there is a constant balance of assets in the liquidity pools, which in theory helps to regulate the prices of assets in liquidity pools.
If prices in AMMs diverge too much from market prices on other exchanges, traders are given incentives to take advantage of the price difference, which in turn leads back to supposed equilibrium.
On the Bancor Network, BNT acts as the default reserve currency for all smart tokens created on the platform. Each smart token is related to smart contracts. These smart contracts hold reserves of other ERC-20 compatible tokens.
According to its documentation: “Bancor uses its protocol token, BNT, as the counterpart asset in every pool. Using an elastic BNT supply, the protocol is able to provide BNT liquidity alongside an LP [liquidity provider] and compensate them for any IL [impermanent loss] with swap fees earned from the protocol’s pool tokens.”
Bancor purports to be run and managed by a community as a decentralised autonomous organisation (DAO). The DAO is governed by a “democratic and transparent voting system which allows all stakeholders to get involved and shape Bancor’s future”.
According to Bancor, it has developed a system called “safe staking”, meaning liquidity providers are protected from the value of their tokens dipping in price – and they can earn high yields with less risk.
Providers can also, unlike on other platforms, stake only a single token rather than a pair. Acccording to official literature, stakers earn trading fees that compound on the token they have staked.
The Bancor protocol was founded by Israeli-based entrepreneurs Eyal Hertzog, Galia Benartzi and Guy Benartzi.
Hertzog, who is based in Israel, is a serial entrepreneur. After leaving the Israeli army, he co-founded a variety of companies including Contact Networks, a social network, and Metacafe Inc, a video sharing protocol. Before co-founding Bancor, where he now works as a product architect, he also co-founded AppCoin, a crypto marketplace. Eyal most recently co-founded BBS Network.
Galia Benartzi, who is based in California, studied international studies at Johns Hopkins University. She subsequently co-founded Particle Code, a mobile app deployment platform, as well as becoming a venture partner in Founders Fund, which invested in a range of tech companies.
Guy Benartzi studied political science and government at Colorado College. Before co-founding Bancor, he founded Mytopia. He is also the co-founder and president of BBS Network.
With all this information to hand, what does it mean for a Bancor price prediction for 2022? Or even a Bancor price forecast for 2030?
Before looking at the forecasts, let’s look at the recent performance of the BNT token.
How has Bancor (BNT) performed over time?
According to CoinMarketCap, the coin dropped immediately after release, decreasing from an all-time high of $23.73 on 19 June 2017 to $1.7121 on 15 July 2017. The coin subsequently rose slightly to $3.235 on 1 September 2017. The BNT coin traded sideways throughout the remainder of 2017, rising in 2018 to $10.1 on 13 January 2018.
Despite dropping soon after to around $2.1751 on 1 April 2018, the coin recovered slightly in the following month, hitting $5.4238 on 5 May 2018. Later that year, prices dropped again hitting lows of $0.5447 on 6 December 2018.
BNT traded below $0.83 throughout 2019 – and by January 2020, it was trading around the $0.20 mark until May. From a price of $0.3109 on 18 May 2020, it quickly climbed to $2.6206 by 8 August – only for it downtrend to $0.537 by 4 November 2020. From here the BNT price climbed steadily to $1.787 on 15 December 2020.
This upward trend continued into 2021 to a peak of $9.1566 on 8 March 2021, before downtrending to $2.6733 on 19 July 2021. Despite a brief resurgence to $4.7735 on 5 September 2021, the BNT coin dipped soon after, dropping to lows of $1.95 by 24 February 2022. The coin picked up again by early March, reaching $2.49 by 2 March 2022.
The BNT price then slid, however, dropping to $2.10 by 14 March. The token subsequently surged once more, reaching $2.82 by 31 March, but has since dropped considerably.
The price of BNT had dropped to $2.23 by 26 April 2022, and throughout early May the coin price has slid further, standing at $1.92 as of 6 May 2022.
According to CoinGecko, the coin has dropped 75% since May 2021 and 29% in the 30 days leading up to 6 May. There is a flexible supply of BNT with a current circulating supply of 265.753 million tokens – giving it a current market cap of $450,385,008.
But what are the implications of all this for a Bancor price prediction?
BNT price prediction – expert opinion
When assessing crypto price predictions, remember while they can provide a helpful indicator as to which direction a price may move in, they should be viewed as absolutes, rather than possibilities. This is especially true of longer-term forecasts, which can be completely off the mark, thanks to the volatility of the crypto market and the many unknowns that could affect future prices.
Bearing all this in mind, let’s have a look at some Bancor price predictions…
In a very optimistic forecast, WalletInvestor thinks Bancor could go up to $3.116 in a year’s time, before leaping to $8.321 in five years’ time.
Another bullish forecast from Gov.capital suggests BNT could go up to $5.547 in a year’s time – and then surge nearly fivefold to $24.52 in five years.
In contrast, DigitalCoinPrice offers a less exuberant outlook. It gives a Bancor coin price prediction for 2023 of $2.51. DigitalCoinPrice’s Bancor price prediction for 2025 stands at $3.26 while its Bancor price prediction for 2030 is $7.80.
How many bancor are there?
There is a flexible supply of BNT. This means there is no maximum supply. There is a current circulating supply of 265.753 million tokens.
Is bancor a good investment?
Potentially. Despite dipping recently in value, experts seem bullish on the BNT price.
It is important to understand that cryptocurrencies are highly volatile assets, and to remember that analysts’ forecasts can be wrong. It is down to you to carry out your own research.
Will bancor go up?
According to the long-term forecasts outlined earlier, the coin could go up. But it could also just as easily go down.
Always remember that forecasts, especially those looking far into the future, should be viewed as indicators and not absolutes.
Should I invest in bancor?
Investing is a highly personal endeavour. Always do your own research, and try to keep up-to-date on any news about the Bancor ecoystem that could boost or dampen its prospects.
Investing can be risky, so you should never invest more money than you can afford to lose.