The cryptocurrency market has expanded throughout the year at a very large rate, where thousands of coins and tokens are now accessible for trading. To make such trades possible, cryptocurrency exchanges were created. Each of them offered the same yet very distinctive trading options. One that has established itself as one of the best exchanges is the Binance Exchange. But the team behind this exchange did not stop here, as they launched their own blockchain, known as the Binance Chain. The native token of this blockchain is the Binance Coin (BNB). The Binance Chain is not only a medium for trading purposes, but it also focuses on the Decentralized Exchange (DEX) sector.
About a year after the launch of the Binance Chain, the Binance team launched another blockchain-based network, known as the Binance Smart Chain. The BSC allows users to launch their projects in the same way as they can launch in the Ethereum network. While all this information may sound complicated and overwhelming, both the Binance Coin and the Binance Smart Chain are very easy to be comprehended. Therefore, this article focuses on these two components of Binance, what they offer, how they work, and much more.
What is Binance Coin (BNB)?
Simply put, Binance Coin (BNB) is the native token of the Binance Chain. The Binance Chain uses Byzantine Fault Tolerance (BFT), which is fairly different from the common consensus mechanisms such as Proof-of-Work (PoW) or Proof-of-Stake (PoS). The BFT is based on the war strategy dilemma also known as Byzantine Fault. Briefly explained, the Byzantine Fault concept entails that some nodes are tolerated if the information is not completely correct due to technological issues. The same idea applies to securing the Binance Chain network.
Since there is no PoW or PoS, BNB tokens cannot be mined. Nevertheless, the validators responsible for securing the network are fairly rewarded. The BNB tokens are also burned. The reason for this is to keep BNB less inflationary, increasing the potential price of BNB in the future. The burning process is done roughly every three months, and the number of burned tokens depends on the activity level in the Binance Chain. As of June 6th of 2021, there have been 15 BNB burns so far. The burning process is expected to continue up to the point where 50% of the initial max supply is burned.
The current total supply of BNB tokens is around 169 million BNB, with 153 million BNB in circulation.
Related: What is Binance Smart Chain (BSC)?
Binance Coin Price Analysis
Founded in China by Chanpeng Zhao, Binance Coin was launched less than two weeks after the Binance exchange was created. The funding of the project was secured through initial coin offerings (ICO) back in 2017.
Initially, Binance Coin was launched in the Ethereum network and served as an ERC-20 token. People could use the BNB tokens in the Ethereum network to create Decentralized Applications (DApps) through the use of smart contracts. Some months after the release of Binance Coin, the Binance Chain mainnet was created. The BNB tokens in the Ethereum network were then converted to BEP-2 tokens in the Binance Chain, with the Binance Coin being the native token.
Based on the price chart of CoinMarketCap, the price of BNB when it was initially released in 2018 was around $0.10. Within a month, the price reached $2.70, marking a 2600% increase and a very promising launch in the market. In the bullish trend of early 2018, BNB reached the price of $22.76, marking yet another huge increase in the price. By the end of 2018, the price had dropped to around $4.50. In 2019, BNB had another bullish run, reaching $38.82. The price dropped to $10 in March of 2020. BNB started 2021 at a price of around $38. The following months were the most successful yet in the history of the Binance Coin. BNB reached its highest of all time in May of 2021 at $690. The price has declined again, and it is around $385 as of June 6th of 2021.
With a current price of around $385 and a circulating supply of around 153 million BNB, the market cap of BNB is around $59 billion, placing it as the fourth biggest cryptocurrency in the market. The fully diluted market cap of BNB is around $65 billion.
Binance Coin (BNB) Market Price Prediction
Even though the price of BNB has declined recently, it does not indicate that BNB cannot increase again in 2021. A lot of investors may take advantage of this price dip and buy more BNB tokens. This can lead to another increase. Furthermore, a lot of experts suggest that the likes of Bitcoin may start increasing again in the last quarter of the year. If BTC increases, it is likely that other cryptocurrencies increase as well, including BNB. Here are some BNB price predictions by some of the most reliable cryptocurrency predictors:
Wallet Investor forecasts that the price of BNB can start increasing again in 2021. While it may not surpass its all-time high this year again, it is quite possible that it can happen in the next 12 months. They also predict that BNB can hit at least $2,000 in the next five years. Potentially, a 500% increase is quite possible in the long run.
Longforecast also predicts an increase in the price of Binance Coin in the next 12 months. They suggest that BNB can reach $1,000 by August of 2022.
YouTuber Crypto Addiction predicts that Binance Coin can easily reach $1,000 by the end of 2021. Due to token burning and its limited supply, the price of BNB may easily increase as it becomes scarcer.
https://www.youtube.com/watch?v=TcG8yZAVJ_8
BitBoy Crypto gives his predictions for several altcoins by the end of this cycle in 2021. He predicts that BNB can reach a peak of $1,500 since this bull run is looking similar to the double peak of 2013-2014.
The growth of BNB is also acknowledged by the Coin Bureau. While they do not necessarily forecast an exact price in the future, they suggest that BNB is one of those coins that everyone should have. As implied, the success of Binance Coin is heavily linked with the success of the Binance exchange.
The latter is the leading cryptocurrency exchange in the world. This is due to the fact that Binance offers some of the best services among all other exchanges. With BNB being the native token of Binance, its utility is what gives it value. Furthermore, the partnerships that Binance has had in recent years have only affected BNB positively. Due to these reasons, Coin Bureau predicts that Binance Coin can be one of the most important cryptocurrencies in the world.
Crypto Academy Binance Coin (BNB) Price Prediction
We at Crypto Academy also have an optimistic view of the future price of BNB. Since most BNB tokens are planned to be burned in the coming years, the supply of BNB might be scarcer than it is now. Moreover, Binance is launching the Binance Broker Program, which looks to make the exchange even better than it is now. Furthermore, the trading volumes of Binance Exchange indicate that more users are creating accounts every day. Using BNB in Binance can benefit these users by paying less trading fees (50% fee reduction). Undoubtedly, this is going to drive the demand for BNB tokens even more. Due to all the price factors of Binance Coin, we at Crypto Academy predict an increase in the price of BNB in both the short term and the long term.
BNB Price Prediction 2021
If cryptocurrencies such as Bitcoin, the world’s leading cryptocurrency, manage to have another increase in the upcoming months, other cryptocurrencies may follow as well. Since Binance is the most used exchange, the need to have BNB is going to increase. BNB can go close to $700 once again, potentially exceeding its all-time high.
BNB Price Prediction 2022
The price increase of BNB shall not end in 2021. Other things equal, this increase can continue until at least the end of the first quarter of 2022. BNB might hit $1,000 for the first time in 2022. Nevertheless, the remaining months of 2022 might be more stable.
BNB Price Prediction 2023
In 2023, Binance Coin might experience another increase simply because BNB may have been implemented in many businesses as a means of payment. A steady increase to $2,000 is quite possible, as Binance might remain the world’s leading exchange and investors rightfully shift from other exchanges to Binance. Furthermore, many traders are optimistic that Binance may begin to have support in the US as well since a lot of US traders are limited when it comes to using Binance.
BNB Price Prediction 2024
Even though we predict that BNB might be around $2,600 by the end of 2024, the price might not fluctuate that much throughout the year. Perhaps the BTC halving planned to occur in 2024 might make a lot of investors uncertain initially. However, a bullish trend may begin in December of that year.
BNB Price Prediction 2025
Quite possibly, the BTC halving of 2024 may cause another bullish trend in the market, with a lot of cryptocurrencies experiencing huge increases. BNB is included here as well since the trading volumes may increase in Binance and drive the demand for BNB even more. BNB might hit at least $9,000 in the first quarter of 2025.
BNB Price Prediction 2026
By 2026, cryptocurrencies might play a huge role in our everyday lives. As more services might shift to blockchain technology, our reliance on cryptocurrencies can be huge. With BNB being one of the most important cryptocurrencies in the world, it is likely to be the same in the next five years. In 2026, BNB might range from $12,000 to $14,000. Judging by this prediction, a market cap of $1 trillion is very possible in the long run for Binance Coin.
How to Buy Binance Coin (BNB)?
You can buy Binance Coin in 3 easy steps:
Step 1: Create a crypto exchange account
The first step when buying cryptocurrencies such as BNB is to create an account in an exchange that supports BNB. As expected, the best exchange for buying BNB is Binance. When opening an account on Binance, you need to verify it in order to use it without facing any issues.
Step 2: Fund Your Account
Once you open and verify your account in Binance, you need to fund your account. There are two main ways of doing this. The first way is by simply transferring tokens from another wallet to your Binance account. The second way is by paying with fiat currencies through a credit or debit card.
Step 3: Buy Binance Coin
Lastly, once you fund your account, you can simply select BNB and press “BUY” to acquire your tokens.
Read more: How To Buy Cryptocurrency? – A Step-By-Step Guide
How to Store Binance Coin (BNB)?
Once purchasing BNB, it is highly recommended that you transfer your BNB to a safe cryptocurrency wallet to avoid the possibility of a hacker stealing your assets.
You can use either a hot (software) wallet or a cold (hardware) wallet. The best hot wallets for BNB are Trust Wallet, Binance Chain Wallet, Atomic Wallet, etc. The best cold wallets for BNB are Ledger and Trezor.
Read more: Top 9 Cryptocurrency Wallets in 2021
Frequently Asked Questions (FAQ)
Is BNB a good investment?
Yes, BNB is a very good investment because its price is predicted to increase in the future. Furthermore, if you use Binance exchange, reading with BNB can be more efficient.
Can Binance Coin’s price ever reach $1,000?
Yes, BNB can easily go to $1,000 since it has a limited supply and is one of the important cryptocurrencies in the world when it comes to utility.
Can Binance Coin price increase?
The price of BNB can easily increase. Not only that its supply is limited, but it is also correlated with the success of Binance, the world’s leading cryptocurrency exchange.
Also Read: Ripple Price Prediction 2021 – Will the XRP Price Explode After the Issue with SEC is Resolved?
Takeaways
- Binance Coin (BNB) is the native token of the Binance Chain.
- It uses Byzantine Fault Tolerance (BFT) as a consensus mechanism.
- Binance Coin has a limited supply and undergoes burning to promote an inflation-free price.
- The price of BNB has increased massively in the first few months of 2021, reaching an all-time high of $690.
- The price of BNB is predicted to increase by a lot of experts.
- The best way to buy BNB is through the Binance exchange. Once buying BNB, it is recommended to store them in a safe cryptocurrency wallet.
- Generally, Binance Coin is a very good investment.