BNB price prediction: Can records be broken in 2022?
Forecasts were boosted by rising volumes and the growth of the BNB Chain, but where is the token now?
- BNB coin price history
- From the BNB whitepaper
- What are the factors in an upbeat BNB coin prediction?
- BNB coin predictions
Binance coin (BNB) has come a long way since its humble launch in the summer of 2017. The coin was developed and designed specifically for use in the Binance ecosystem, offering rebates to incentivise its use. All coins were pre-mined before their initial coin offering, with the price set at $0.10 per BNB.
Despite the crypto winter of 2018, BNB has proven resilient in the altcoin markets – and fast forward to 2022, Binance coin’s price still carries a lot of interest. The coin gained roughly 1,344% in 2021, according to Arcane Research, compared to a 73% increase for Bitcoin and 455% for Ethereum.
BNB demand grew following a dramatic acceleration in the cryptocurrency’s price. Over the course of 2021, BNB rallied from around $38 in January to an all-time high of $683.82 in early May, and also saw another high of $668.07 in early November.
There has been a substantial reduction in the value of the coin over the course of 2022, which can be attributed to another crypto winter looming large over the market. The market crashes towards the end of the second quarter saw the value of BNB plummet to lows of $184.54 on 18 June.
Although the token has gained back some momentum during the weeks since, and as of 11 August, the token is trading at $329.50.
But what is BNB? And does a Binance coin price prediction suggest we will see this major altcoin break out of the bear market?
Here, we are going to look at the fundamentals behind the BNB price and the factors that influence this cryptocurrency the most.
BNB coin price history
Is BNB a good investment in 2022? Before we answer this, let’s have a quick recap of what Binance coin (BNB) is actually for and the BNB coin price history.
Launched by the major crypto exchange of the same name, BNB is designed to serve as the lynchpin of the Binance ecosystem. One of the main attractions lies in how this altcoin can be used to unlock discounted trading fees. BNB also has a starring role in the Binance Smart Chain (now BNB Chain), which is vying to become a rival to Ethereum that offers greater levels of scalability, along with lower transaction fees.
One of the most vocal supporters of BNB – with a Twitter following of more than 6.7 million – is Binance CEO Changpeng Zhao, commonly known on the platform as CZ. In a tweet posted in March 2021, he said:
“#BSC (of which I am just a community member), is not replacing ETH, but it is overtaking ETH. Lower fees enable more transactions, which leads to a more inclusive #DeFi ecosystem.”
Although CZ stresses that he does not give financial advice, his enthusiasm for Binance coin, the BNB price prediction for 2022 and this cryptocurrency’s potential are clear. He has retweeted posts that describe this altcoin as far superior to ETH – the world’s second-largest cryptocurrency.
Currently, this digital asset has a market capitalisation of over $53bn, meaning that it has also started to gain ground on Ether, which has a total valuation of around $231bn. Although talk of a “flippening” may seem rather far-fetched, BNB proponents are adamant that this digital asset has the potential to gain more ground in the future.
CZ has also shared posts that suggest BNB coin price predictions have been wrong over the years, encouraging users and the wider public domain to be cautious when making investments, and reminding them that information provided on the forum is not financial advice.
In one tweet, he explained how many people were reluctant to invest in 2017 because it was too risky, while it was not worth investing in 2018 because the market had crashed. Although there was interest in 2019 and 2020 to see whether Binance coin would gain momentum, one narrative put forward in 2021 was that BNB had already pumped – meaning it was too late to enjoy further price movements.
That same tweet argued that we are still at an early stage in the crypto market’s evolution, adding:
“A $500 investment in $BNB back in mid-2017 would have made you a millionaire today.”
It should be noted that in June 2021, the UK’s financial regulator, the Financial Conduct Authority (FCA), issued a warning about Binance Markets Limited (BML) and the Binance Group, ruling that BML “is not permitted to undertake any regulated activity in the UK” as it lacks the relevant authorisation.
The watchdog also advised people to be “wary of adverts on social media promising high returns on investment in crypto assets”.
In response, Binance – the world’s biggest cryptocurrency exchange – said that “BML is a separate legal entity” and the FCA notice would have no “direct impact on the services it provides from Binance.com”.
The Binance Group acquired BML in May 2020 and has not yet launched its UK business – nor has it been permitted to undertake any regulated activity, as per the FCA notice. However, in February 2022 the FCA expressed concern about Binance’s deal to access the UK payments network Paysafe, but also acknowledged that it has “limited powers to object to arrangements of this kind”.
Naturally, how the FCA and other institutions handle regulation will determine the fate of the coin, or at least investors’ access to funds, as new rules are laid out. Binance coin gained some momentum after a promising run towards the end of March, closing the month at $428.92.
In a regulatory filing on 18 April 2022, Gulf Energy revealed investments in “Series Seed Preferred Stock issued by BAM Trading Services Inc”, which is the operator of Binance US. Despite the positive developments, including a successful token burn, there was a slight correction in the following weeks, and towards the end of April, the coin closed at $377.77.
The recent market crash saw the value of BNB plummet to lows of $216.36 on 11 May 2022, a decrease of almost 30% over a seven-day period, and approximately $1trn was wiped off the total value of the crypto market. Binance experienced significant congestion that day, which could also be attributed to the heavily overloaded Ethereum (ETH) blockchain:
However, Binance is still thriving, despite the long-running bear market.
According to an analysis by FXStreet: “Binance coin price is beginning to show evidence of strength as the bulls have propelled towards previous highs established during the end of May. At current time, Binance Coin seems to be leading the way in terms of outperformance as most cryptos in the space have not come in such close proximity with their previous sell-off highs.
“Auction market theory suggests a significant amount of liquidity has been placed above the spring-time high and market makers are likely aiming for said levels to heighten the volatility.”
At the time of writing on 11 August 2022, the coin is trading at $329.50.
From the BNB whitepaper
The whitepaper states: “In our view, there are fundamentally two different types of exchanges: the ones that deal with fiat currency; and the ones that deal purely in crypto. It is the latter one that we will focus on. Even though they are small now, we strongly believe that pure crypto exchanges will be bigger, many times bigger, than fiat-based exchanges in the near future.”
The document goes on to say: “They will play an ever more important role in world finance and we call this new paradigm Binance; Binary Finance.”
BNB/USD price history
|Oct 2, 2022||281.12||-1.02||-0.36%||282.14||282.65||281.07|
|Oct 1, 2022||282.14||-1.87||-0.66%||284.01||284.64||277.08|
|Sep 30, 2022||284.02||0.64||0.23%||283.38||289.02||279.79|
|Sep 29, 2022||283.38||2.76||0.98%||280.62||283.47||276.52|
|Sep 28, 2022||280.61||9.01||3.32%||271.60||283.00||265.62|
|Sep 27, 2022||271.59||-3.83||-1.39%||275.42||285.73||268.58|
|Sep 26, 2022||275.42||1.91||0.70%||273.51||276.08||270.08|
|Sep 25, 2022||273.52||-0.28||-0.10%||273.80||278.93||270.40|
|Sep 24, 2022||273.79||-2.08||-0.75%||275.87||282.44||273.73|
|Sep 23, 2022||275.87||1.26||0.46%||274.61||276.98||267.92|
|Sep 22, 2022||268.14||4.75||1.80%||263.39||275.75||262.83|
|Sep 21, 2022||263.39||-2.19||-0.82%||265.58||275.68||259.77|
|Sep 20, 2022||265.58||-5.71||-2.10%||271.29||272.91||264.54|
|Sep 19, 2022||271.30||5.64||2.12%||265.66||272.24||256.04|
|Sep 18, 2022||265.65||-12.70||-4.56%||278.35||279.27||263.18|
|Sep 17, 2022||278.34||4.22||1.54%||274.12||279.11||274.00|
|Sep 16, 2022||274.14||3.83||1.42%||270.31||275.78||267.74|
|Sep 15, 2022||270.30||-8.37||-3.00%||278.67||279.77||265.95|
|Sep 14, 2022||278.67||1.95||0.70%||276.72||281.98||272.76|
|Sep 13, 2022||276.72||-16.54||-5.64%||293.26||297.73||274.71|
What are the factors in an upbeat BNB coin prediction?
A BNB price prediction tends to be at its most bullish when there is a flurry of trading activity on the platform. Binance has repeatedly seen volumes break new ground, as traders attempt to capitalise on the new highs seen in Bitcoin, Ether and other cryptocurrencies.
With BNB opening the door to reduced fees, demand for the 165 million coins will undoubtedly rise when crypto enthusiasts are vying to log on to their accounts in a hurry.
As we mentioned earlier, the increasing role of BNB Chain is also significant. Several decentralised finance (DeFi) projects have already made the leap, shifting their protocols from Ethereum as they seek to ensure that transactions are more affordable and faster for users – though the ETH 2.0 2022 upgrades will go a long way to addressing those issues.
A Binance coin price prediction is helped further by the fact that the exchange behind BNB regularly enters into high-profile partnerships with other crypto projects. Such agreements typically result in BNB being accepted by a greater number of merchants, meaning there is greater scope for the cryptocurrency to be used for purchases. So what are the BNB coin predictions?
BNB coin predictions
According to a Binance coin price prediction 2022 from LongForecast, BNB could be on track to hit between $353 and $447 by December, indicating a general uptrend. However, the site then forecasts a mid-year value between $268 and $333 in 2023, but only a value between $257 and $329 in December that year.
The BNB coin price prediction for 2022 from DigitalCoinPrice is more optimistic. The site suggests the coin could reach $444.10 in September and $453.70 by December. Setting targets for the next four years, it anticipates the price to be an average of $468.24 in 2023 and $484.61 in 2024. The Binance coin price prediction for 2025 is $635.55, but $593.92 in 2026. The site then forecasts a year-on-year uptrend, hitting $1,508.69 in 2030.
PricePrediction.net has an extremely bullish sentiment, suggesting a Binance coin price prediction for 2030 of $7,116.85.
Of course, with any Binance coin prediction, algorithms can have imperfections. Always remember cryptocurrencies are highly volatile assets and that past performance is never a guarantee of future results.
Any decision to invest should be based on your attitude to risk, your expertise in this market, the spread of your portfolio and how comfortable you feel about losing money. A BNB coin prediction is based on historical data and is not representative of all market conditions. Never invest more than you can afford to lose.
How does Binance coin work?
Binance coin is issued by the Binance cryptocurrency exchange. It is used primarily to pay transaction and trading fees on the exchange. BNB cannot be mined: Instead, all of the coins were pre-mined before an initial coin offering, with a price set at $0.10 per BNB.
What is Binance coin used for?
BNB is designed to serve as the lynchpin of the Binance cryptocurrency exchange. It is used to pay for goods and services, settle transaction fees on BNB Chain, and participate in exclusive token sales.
BNB also has a starring role in the Binance Smart Chain (now BNB Chain), which is vying to become a rival to Ethereum, offering greater levels of scalability along with lower transaction fees.
Is Binance coin limited?
Binance executes coin burns every quarter, a key part of BNB’s tokenomics, intended to promote deflation and help sustain BNB’s market value. There is a current circulating supply of 161.3 million coins (81% of the maximum supply).
How to get Binance coin
BNB is available on multiple exchanges. Always remember to do your own research around BNB price predictions before investing, and do not invest more than you can afford to lose.