The growth of cryptocurrencies and decentralized systems continues to take a holistic shape and form as the majority of the world’s audience leverages its wealth-building and life-changing capabilities.
Daily peaks of user growth continue as investors and traders leverage the development of new and existing cryptocurrencies and make investments in cryptocurrency exchanges.
A significant contributor to the growth of the cryptocurrency and blockchain industry is seen in the successes and price peaks of pioneer crypto digital assets, including the newly developed ones.
This has kindled the interest of new users and investors seeking to reap the benefits of investments in solid and choice cryptocurrencies.
One such cryptocurrency is the Binance coin which has shown massive price potential and is on the watchlist of many traders and investors.
This article will focus on understanding Binance coin as a cryptocurrency, its origin and price performance in the past, and price predictions for the future.
What is BNB?
BNB is the native cryptocurrency of the Binance platform used for processing payment transactions and multiple interactions on its Binance Smart Chain ecosystem network.
BNB is one of the top leading cryptocurrencies by market capitalization and volume traded, as seen on global cryptocurrency rankings. It is rated number four, following the stablecoin Tether, next to Ethereum and Bitcoin as the first and pioneer cryptocurrency.
As a cryptocurrency, BNB was developed to possess a wide range of utilities and applications in decentralized finance systems, trading, and other multi-functions.
Users widely use BNB to carry out transaction processes and payments via the Binance smart chain network due to its discounted and low transaction processing fees.
On the Binance platform, BNB is used to pay for products and services, which include tourism and hospitality, travel and bookings, utility bills, and recreation experiences.
Every quarter in a year, the Binance platform takes out one-fifth of profits from trading and other services and repurchases BNB with the profits, which then undergoes a burn mechanism and destruction process.
The BNB burn mechanism carried out by the Binance platform is done to reduce the total and circulating supply of BNB, which potentially drives its value and worth.
Origin And History Of BNB
BNB were conceived as an idea to be a scalable utility and native cryptocurrency of the Binance platform and exchange.
It was then developed and founded by ChangPeng Zhao, who acted on the vision to launch BNB as a native cryptocurrency for its parent platform Binance in July 2017.
During its Initial Coin Offering (ICO) launch, Binance featured a maximum supply of 200 million BNB cryptocurrencies available to investors and the public.
Ten percent of BNB’s maximum cryptocurrency supply was made available to angel investors, forty percent of BNB to the Binance founding and developer team, and fifty percent to different participants and users.
BNB sold at a unit launch price of 15 cents as of its Initial Coin Offering and was leveraged by investors and participants, some of which still hold its native cryptocurrencies to this day at its current price of $298.
Through this ICO, Binance raised $15 million in Bitcoin (BTC) and Ethereum (ETH).
Fifteen percent (15%) of the total $15 million revenue made from sales of BNB was placed aside in reserve by the Binance project team in case of emergencies or extraordinary cases where a need arises to make use.
Thirty-five percent (35%) was used to update and upgrade the Binance platform and exchange, and the remaining fifty percent (50%) was spent on branding, marketing, onboarding, and training new innovators and team recruits.
BNB was initially built and developed based on the Ethereum blockchain ecosystem network but later switched to its parent network, the Binance Smart Chain (BSC) network.
The Binance Smart Chain network ecosystem is scalable and efficient in terms of transaction processing speeds and low fees compared to other blockchain networks.
What Protocol BNB Uses
BNB, as a cryptocurrency, leverages its popular Binance Smart Chain network protocol, which is known for scalability and maximum throughput.
The Binance Smart Chain protocol used by BNB is a blockchain network built for running smart contracts and decentralized applications.
Binance Smart Chain protocol can also be described as a blockchain network protocol that runs parallel to the BNB Beacon Chain.
Unlike the BNB Beacon Chain, Binance Smart Chain prides itself on smart contract functionalities and compatibility with the Ethereum Virtual Machine (EVM), which allows it to run applications built on the Ethereum blockchain network.
However, the Binance Smart Chain network protocol is not a Layer 2 or off-chain scalability solution to the Ethereum blockchain network.
Binance Smart Chain network protocol is an independent blockchain protocol capable of running on its own even when the BNB Beacon Chain goes offline.
Its Ethereum Virtual Machine (EVM) compatibility is a strong feature that enables easy deployments of decentralized applications and smart contracts.
The network functionalities on the Binance Smart Chain create a seamless and user-friendly ecosystem for developers and builders to migrate their decentralized projects and applications hassle-free.
Cryptocurrency users can also easily configure and synchronize decentralized applications and non-custodial wallets such as Metamak to work with the Binance Smart Chain network protocol.
The Binance Smart Chain network protocol is driven by the aim and mission of creating a suitable and decentralized ecosystem for developers to build decentralized applications and smart contracts while supporting their migration from other blockchain protocols.
Its protocol adequately supports the management of digital assets and cryptocurrencies, such as BNB and other cross-chain digital assets, with low latency.
Since its development, the Binance Smart Chain has rapidly grown, with its massive user adoption starting in early 2021 owing to Ethereum’s scalability problems, high gas fees, and congestion issues.
This resulted in users and developers searching and migrating to more scalable and cheaper blockchain protocols such as the Binance Smart Chain.
The Binance Smart Chain protocol community of developers made its network protocol even more attractive to users as a cost-effective transactional platform by lowering its gas fees.
Transaction fees, otherwise known as gas fees on the Binance Smart Chain protocol, were lowered from 15 Gwei to 10 Gwei and, at the same time, maintained high scalability and network speeds.
The Binance Smart Chain utilizes a Proof of Stake consensus mechanism for increased scalability, which results in its achievement of 3-second block times.
Its protocol also integrates a Proof of Staked Authority (PoSA) which welcomes and enables users to become BNB network participants and validators.
BNB users and token holders can become active network validators of transactions on the Binance Smart Chain protocol by staking considerable amounts of BNB on its network.
The benefits of becoming an active network validator on the Binance Smart Chain protocol are numerous. Its protocol allows validators to build a passive income and earn token rewards in BNB for validating transaction blocks.
Unlike many blockchain protocols, the Binance Smart Chain features no block subsidy of freshly-minted BNB, as BNB is not inflationary. Instead, the supply of BNB decreases from time to time as the Binance project team employs a burning mechanism of BNB coins in circulation.
The original plan for Binance Smart Chain was to be a separate but compatible system to the current BNB Chain. A dual-chain architecture is intended to allow for the smooth transfer of assets from one blockchain to another. This allows for quick trading on the BNB Chain and the development of strong decentralized applications on the Binance Smart Chain. Users are exposed to a broad ecosystem with this interoperability, which can accommodate a variety of use cases.
Binance Smart Chain joins a variety of cutting-edge protocols created to span the gap between multiple blockchains and significantly expands its capabilities. Even though its platform is still young, the prospect of BNB staking and EVM compatibility makes it the perfect tool for developers of decentralized applications.
What Makes BNB Different From Other Cryptocurrencies
BNB is a utility cryptocurrency developed with cross-applications and functionalities on its central Binance platform and the blockchain industry.
BNB is utilized for trading services and a medium of exchange between users and sets itself apart from other digital tokens and cryptocurrencies in a number of distinct ways.
It is the official utility cryptocurrency of the Binance centralized exchange, offering an ample range of decentralized services and products.
Unlike many cryptocurrencies developed without a native centralized exchange attached to them, BNB has one and performs multiple functions and applications for the growth and scalability of its base platform.
Operational on its base platform known as Binance, BNB is used to purchase NFTs and digital collectibles and pay for travel bookings, hospitality, tourism, trading, and transaction processing fees on the Binance platform.
BNB, as a cryptocurrency and digital asset, is not inflationary in its token supply and development structure.
It is a deflationary cryptocurrency with a burn mechanism that significantly reduces its total supply when it undergoes burning.
Every yearly quarter, the Binance platform takes a portion of its profits and earnings to buy back BNB for the sole purpose of burning and destruction to aid the reduction of its available quantity and token supply.
BNB has, since 2017, experienced yearly and quarterly burns, which is in line with the project team’s vision to reduce its total supply.
BNB is among the top five cryptocurrencies by market capitalization, trading volume, and popularity which sets it apart from other unpopular or newly developed cryptocurrencies.
The native cryptocurrency, BNB, is backed by a robust Binance project team and a vibrant community of users, investors, developers, and enterprises scaling its growth and development.
BNB is the base and official token of its parent Binance NFT marketplace and trading platform and offers users discounted transaction rates and processing fees.
Additionally, corporations, businesses, and enterprises leverage BNB’s unique coin payment structure to offer clients and vendors a scalable range of payment options widely accepted globally.
In the entertainment industry, BNB has many applications, some of which include purchasing fan tokens, lottery tickets, and paying for virtual cards and gifts.
Cryptocurrency investors and users also leverage BNB coins to invest in different token launches and Initial Coin Offerings (ICO) that are listed through Binance’s Launchpool and Launchpad programs.
Factors Influencing BNB Price Growth
Binance coin(BNB) is a utility cryptocurrency developed and packed with distinct functionalities necessary for the growth of the cryptocurrency and blockchain industry.
In terms of the price and growth potential of BNB as a cryptocurrency, it shows adequate dexterity looking at its history and price performance.
However, the future growth and price potential of cryptocurrencies such as BNB are influenced by numerous factors that can either scale its price growth positively or impact it negatively.
The factors and drivers that influence price growth potential, positively or negatively, are not native to BNB alone, as it affects the broad spectrum of cryptocurrencies.
BNB is the popular and native cryptocurrency of the Binance platform, and it is constantly subject to the factors and price influencers below, which shape its growth potential.
Let us look into some of these factors and price growth influencers.
Demand And Token Supply
The forces of the volume of demand and token supply are significant drivers of every cryptocurrency’s price and growth potential.
As the demand for a particular cryptocurrency increases, there is a high chance of its price growth scaling rapidly.
On the other hand, the poor and low demand for a particular cryptocurrency may signal a negative price decline and downward growth potential in no time.
Digital tokens and assets created or in their development stages may be programmed to have a limited supply of tokens or abundant nature.
Some cryptocurrencies are built to be deflationary, which means that there are mechanisms to reduce their total supply in the markets.
Other cryptocurrencies are inflationary, which signals the creation and addition of new tokens to their total supply from time to time.
All of these scenarios play an important role in the price growth potential and development of a cryptocurrency.
A deflationary cryptocurrency will result in its limited supply over time, making it scarce to investors and users.
Its limited token supply and scarcity may drive its volume of demand and price growth as many users look to own a slice and hold a certain amount of it.
An inflationary cryptocurrency is abundant in its token supply and additions and may only experience mind-blowing price growth if there is a significant volume of demand which is mostly due to its vibrant community of investors actively making purchases.
BNB is a deflationary cryptocurrency popular for its contributions and active community base in the blockchain and crypto industry.
BNB has shown massive growth and price potential in the past owing to the high volume of demand and platform utility.
Despite the current bear markets, BNB is still holding up, which signifies its rate of demand and general outlook by users.
Cryptocurrency users and investors pay keen attention to parameters such volume of demand and supply of crypto assets before making investment decisions.
Investing in solid cryptocurrencies can be worthwhile, but the investment decision and research into individual crypto and digital assets rest solely on you as a prospective user and investor.
Use Case
Utilities and use cases of a cryptocurrency such as BNB are critical to its success and price growth potential.
A cryptocurrency may become popular and fully utilized by users just by its innovative solutions and applications it renders to users.
This drives its price growth potential and volume of demand for its utility coin by users looking to get the most out of its solutions.
BNB is a cryptocurrency with diverse functionalities and utility in the global blockchain and crypto industry spectrum.
Undoubtedly, its price growth and successes over the years owe a bit to its utility and cross-applications deemed attractive and usable by investors and users.
A cryptocurrency’s utility and use case drives the volume of demand from users and investors and is a positive signal for future growth potential.
Investors and cryptocurrency users may be advised to conduct personal research into the applications and utility of a crypto asset, which can be a yardstick for making investment decisions.
Strategic Partnerships And Visions
The clear visions and innovative partnerships of a cryptocurrency project are building blocks that have capacities to influence the price growth potential of crypto assets.
Cryptocurrency projects with a realistic roadmap are seen to achieve their missions and milestones one step at a time.
This builds the trust and confidence of users and investors who may make big investments in such cryptocurrencies.
Strategic partnerships also go a long way in validating and boosting the applications and relevance of individual cryptocurrency projects.
This gives the impression of the applications and value it seeks to add to its ecosystem and to its users and investors.
Overall, innovative and strategic partnerships with a clear vision are popularity and value boosters that impact a cryptocurrency’s price growth potential.
The Binance project team and platform are known for the immense contributions and value-added partnerships it enters into, which in turn scale the price growth potential of its native cryptocurrency, BNB.
Its partnerships and NFT marketplace integration, which feature creators and celebrities together with its broad payment spectrum and applications, are among the scalable visions that drive BNB price growth potential.
BNB Price Performance In The Past
On July 26, 2017, BNB was launched in the cryptocurrency market by the Binance project team at a trading price value of $0.15.
It then soared in price value and showed positive signs of an uptrend as it traded at $2.5 on August 27.
Unfortunately, its uptrend was only slightly sustained, as the following months saw it trade in a bearish consolidated range between $1.2 and $2.
Binance coin(BNB) had a significant price increase and run in 2018, reaching a high of $21.48 on January 12.
The Binance coin price then experienced selling pressures, typical for new coins, and fell to a price of $6.8 on February 6, 2018.
It then slightly recovered to $15 on June 24 and held this price range for the following two months.
The Binance coin started to drop again and lose price value by the end of October, and it closed the year at a trading price below $5.
Binance coin (BNB) continued in its downward momentum, and at the beginning of January 2019, it fell to a price point below $4 and continued trading in that bearish price range.
At the start of February 2019, the cryptocurrency markets experienced a healthy recovery and saw Binance coin rallying to break its price resistance of $20.
It then continued to trade at what seemed to be an uptrend, and on June 26, 2019, it reached a price of $36 and continued in a range above the $30 price region.
The Binance coin price range continued until it fell significantly and dropped by 50% in value to a trading price of $15 at the end of 2020.
The year 2020 saw BNB trading in a range with no significant price movements as the general market sentiments were flat and brewing towards negative sentiments owing to the outbreak of the Corona Virus.
Towards the end of 2020, the cryptocurrency markets showed huge signs of positive price recovery.
The beginning of 2021 introduced the start of the Bullrun, which was a mix of euphoria and excitement as prices of cryptocurrencies rallied significantly.
The Binance coin price climbed rapidly and reached a high of $294 on February 22, 2021.
Binance coin then experienced a price retracement to the $220 price region and showed signs of further retracements.
However, it picked up momentum and rose to the $500 price region creating a new high, but when further to peak at an all-time high of $690 on May 10, 2021.
Following its price peak, the cryptocurrency markets experienced a colossal crash and sell-off and saw most coins and tokens dropping more than 50% in price value.
BNB was not left out as it significantly dropped more than 50% in gains to a price region of $280 in May 2021.
The prices of many cryptocurrencies, including BNB, continued to drop and fluctuate rapidly in price movements.
Binance coin price continued in a range long enough for it to develop some momentum which saw it rally to a price high of $500 from below $300 sub-regions.
It then attained another price high of $638, which seemed like a significant recovery when Bitcoin broke its all-time high around the same timeframes.
The general crypto markets entered a downward trend as bearish sentiments and ideas of a bear market spread rapidly at the beginning of 2022.
The Binance coin price was impacted negatively by bearish market sentiments and saw it trade at a price low of $209 on June 17, 2022.
Since then, BNB has continued in a range and inadvertently experienced little price pumps and recoveries.
Negative market sentiments and bad actors continue to weigh down on the prices of cryptocurrencies, including BNB. The collapse of major exchanges and top platforms such as the Terra Luna and FTX saga continue to heap fear and negative outlooks on the cryptocurrency markets.
However, the bear markets and fear index of the cryptocurrency markets often present life-changing opportunities to smart investors, as seen in the history of bear markets and cycles.
How Is BNB Doing Now?
Despite the bearish market conditions, cryptocurrencies such as BNB are starting to show signs of positive price recovery on major exchanges ad trading platforms.
BNB trades at $296 at the time of writing, a considerable price jump from the lows it traded at in October and some parts of November 2022.
BNB is a utility coin with a huge potential to rally when the general cryptocurrency market recovers fully.
BNB Price Prediction Today
BNB traded at a 24-hour low of $294.38 and currently trades at $296 at the time of writing. It climbed to a 24-hour high of $301.80 before it dropped below the $300 price region.
Trade experts and price analysts have come up with Binance coin price predictions for today, December 1, 2022, and expect Binance coin (BNB) to trade between $293 and $315 price regions
BNB Price Prediction For December
Binance coin price prediction for the first week of December 2022, as predicted by market analysts, can be seen in the table below.
Traders and investors are advised to conduct personal research on cryptocurrencies such as Binance coin (BNB) before making ample investments and trade decisions.
Binance coin Price predictions from market analysts and trade experts are subject to change and review as market sentiments change from time to time.
Short-Term BNB Price Prediction For 2022
The Binance coin price predictions for the remaining month of 2022 is shown in the table below.
These Binance coin price predictions are speculative and may not be used as a basis for making trade decisions as it is subject to change depending on market sentiments.
Long-term BNB Price Prediction For 2023
Most cryptocurrencies including Binance coin (BNB) experienced price declines in 2022 as a result of negative market sentiments and the bear markets.
The projections for the price of Binance coin in the table below, which are made by market analysts, only apply to the months of 2023. These Binance coin price predictions could change and be subject to review based on market sentiments.
Long-Term BNB Price Prediction For 2023 – 2030
Through fundamental and technical analysis, many traders and investors look into the potential future price value of Binance coin (BNB).
The table below provides long-term Binance coin price predictions for the years 2023-2030.
Long-Term BNB Price Prediction By Experts
The applications of knowledge of fundamental and technical analysis by market experts and price analysts help them to contribute foresight on the possible future prices of cryptocurrencies, including Binance coin (BNB).
The general BNB coin price prediction and sentiments from many expert analysts are positive and bullish for the long term.
However, traders and investors are urged to perform their research into cryptocurrencies, adopt sound risk management and not rely solely on forecasts and price predictions when making investment and trade decisions.
Traders can subject themselves to learning technical analysis and build on the skill, which will be of benefit and enable good investment decisions.
BNB Price Forecasts By Price Prediction
Price experts and market analysts at Price Prediction have a positive outlook on the foreseeable future prices of Binance coin (BNB)
According to the analysis carried out by market and price experts at Price Prediction, the price of Binance coin from 2022-2027 is expected to trade at a minimum price of $320.75, an average price of $1,095.20, and a maximum price of $2,399.85 in 2027
BNB Price Prediction By AMB Crypto
Market trade experts and price analysts at AMB Crypto have bullish sentiments regarding BNB coin price predictions both in the short and long term.
In the short term, BNB is predicted to be trading at a maximum price of $971.95 at the end of 2023.
AMB Crypto trade experts have also published a long-term Binance coin price prediction in the cryptocurrency markets. Their long-term predictions see the price of Binance coin trading at a maximum price of $4,634 in 2030.
BNB Price Prediction By Changelly
According to market analysts at Changelly, after analyzing the prices of BNB in previous years, they expect BNB to trade at a minimum price of $428.76 and a maximum price of $533.52 in 2023.
BNB Price Prediction By BitNation
The trading algorithm at BitNation predicts that BNB can reach a maximum price of $818.00 in 2023.
On a more conservative note, they foresee BNB trading at the lowest price of $642 in 2023 or at an average price of $730.36.
BNB Price Prediction By Margex
Experts from the Margex platform were able to speculate the price of BNB considering its solid fundamental analysis, price action, and use case as a major player in the cryptocurrency market. Despite the price being affected by the current bear season, the price of BNB has the potential of trading over $1,000 in the next cycle.
Waiting for another bull cycle can look intimidating; why not explore Margex’s unique staking features to keep growing your income revenue? Margex staking opportunities help traders to earn up to 13% APY with no lockup period, and beginner traders can participate as staking does not require technical knowledge of trading.
Conclusion
Binance coin (BNB) is a resilient cryptocurrency built with multiple utilities and functionalities. Globally recognized trading platforms and crypto exchanges such as the Margex Exchange present opportunities and a trading ecosystem for users to purchase solid cryptocurrencies which cannot be manipulated in any form.
Trading can be very tedious and draining as this exposes one to high price volatility. Sometimes, whales and institutions manipulate these crypto prices, but Margex, with the help of its MP system, shield and protects traders from price manipulations.
The Margex trading and cryptocurrency exchange is popular for its high liquidity provision due to its multiple sources of liquidity providers.
Margex trading platform promotes its user-friendly cryptocurrency trading environment, which has no monopoly or clique of traders and users manipulating the price of cryptocurrencies.
Frequently Asked Questions On BNB Price Prediction
What Will BNB Be Worth In 5 Years?
BNB is a utility cryptocurrency with massive price growth potential and innovative developments in the cryptocurrency industry.
Despite its utility and functionalities, BNB price value and growth potential in 5 years are influenced by factors such as demand and token supply, market sentiments, and cycles.
Although many expert analysts drop future predictions on the prices of BNB, it may not be an accurate price reflection as market sentiments may change from time to time.
What Will BNB Be Worth In 2025?
The price worth and value of BNB in 2025 are influenced by drivers, which can positively or negatively impact its growth potential.
As much as BNB may be worth a huge sum in 2025, its price also can go sideways depending on market sentiments and level of demand.
Investors and traders are advised to conduct personal research and focus deeply on their learning developments of technical analysis, which can be a helpful tool in understanding price movements and directions.
Is BNB A Good Buy In 2023?
The global crypto and financial markets have experienced price declines in the value of digital assets and cryptocurrencies, including Binance coin (BNB).
Prices of cryptocurrencies are currently low and undervalued and may present buy opportunities on recognized crypto exchanges such as Margex.
The months in 2023 are fast approaching, and no one knows for certain if the prices of BNB will go lower and present good investment opportunities or if there will be a price recovery and a change in market sentiments.
Is BNB A Good Buy?
Personal research and sound knowledge of technical and fundamental analysis can help traders and investors determine whether cryptocurrencies such as BNB are good buys.
Traders with sound technical analysis knowledge have the edge of profiting from trades and investments compared to unskilled traders and investors.
Adequate personal research into BNB as a cryptocurrency is instrumental to making sound investment purchases of BNB.
Why Is BNB So popular?
BNB is very popular due to its multiple cross-functionalities, its diverse base utility, and its parent platform’s innovative solutions.
Strategic partnerships and integrations from its parent platform also boost its popularity, applications, and usage.
Its history and price performance growth rate have increased its popularity and raised the eyebrows of many traders and investors.
Is BNB A Stablecoin?
BNB is not a stablecoin. Instead, it is the official and native cryptocurrency of the Binance platform.
The Binance platform features its native stablecoin, popularly known as the Binance USD (BUSD).
BNB, unlike the BUSD stablecoin, is very volatile and experiences multiple price fluctuations, which traders leverage and profit from.
Is BNB Built On Ethereum?
BNB is a cryptocurrency that was initially developed and built on the Ethereum blockchain network.
However, it switched to its network protocol, which was developed and is popularly known as the Binance Smart Chain (BSC).
The Binance Smart Chain network protocol provides more scalability and throughput and supports the deployment of smart contracts and decentralized applications.
