Binance exchange took the market by storm. So did its native digital asset called Binance coin or BNB. In this article, we will cover our own and market’s opinion on BNB future while discussing BNB price forecast for 2019 and beyond.
Please bear in mind that you should take this and any other prediction with a grain of salt since predicting anything is a thankless task, let alone predicting the future of a novel, highly volatile financial asset like BNB.
Now, let’s head into it.
Before we delve deep into the BNB price prediction and answer questions if Binance Coin is a good investment or not, why will BNB succeed or fail or why will BNB price rise or drop, let’s quickly throw a glance at what is Binance Coin and its to date history.
Binance Coin Intro
Before we delve deep into the Binance coin price prediction, let’s quickly throw a glance at what is BNB and its to date history.
Binance exchange was launched much later than it competitors but the team behind charismatic CEO CZ, swept the market and its competitors and won the hears to millions of traders, making it one of the largest and most trusted crypto exchanges today.
The exchange’s revenue model is primarily driven by trading fees with the maximum fee being 0.1% per trade. A variety of discounts are available to the standard 0.1% fee from periodic promotions, volume based discounts, and most notably use of the Binance token (BNB) to pay fees.
Currently, users that pay trading fees with BNB receive a 25% discount, with that number halving each year until it is phased out in 2021. To complement fixed fee trading Binance has been exploring maker-taker trading as another potential option for order execution.
Binance pre-mined a total of 200 million BNB tokens prior to its public launch on July 14, 2017 and they intend to buyback and burn 50% (100 million BNB) of the pre-mine token supply over time resulting in a long-term fixed supply of 100 million tokens once the buyback is complete. Buybacks are scheduled to take place quarterly funded by 20% of Binance’s profits.
Our BNB Price Prediction for 2020
Bitcoin is the focal point of the crypto market in many ways, and with BTC trading pairs on every exchange, the gravity of Bitcoin is hard to evade.
With the latest development in the world and the impending worldwide economic crash, bitcoin failed to decouple itself from traditional markets and lost 40% in one day.
The rest of the market slumped in an even harsher fashion, losing 50%+ in one day. Since this is a black swan event, an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences, there is no one who can legitimately claim that he or his algorithm can predict short-term price developments for anything, let alone cryptocurrencies.
Many experts agree that it will get worse before it gets better, both in terms of human health and economic situation.
We can only speak in very general terms and make a forecast that cryptocurrencies will probably drop below even the 2018 lows (many of the altcoins will most probably dip to unprecedented depths and record new all time lows).
Once this tough situation passes, a crazy bull run is what we all hope for and probability for such development is pretty high.
Binance Coin – Long-Term Price Prediction
The majority of projects will fail — some startups are created just to gather funds and disappear, some would not handle the competition, but most are just ideas that look good on paper, but in reality, are useless for the market.
Vitalik Buterin, co-founder of Ethereum said:
“There are some good ideas, there are a lot of very bad ideas, and there are a lot of very, very bad ideas, and quite a few scams as well”
As a result, over 95% of successful ICOs and cryptocurrency projects will fail and their investors will lose money. The other 5% of projects will become the new Apple, Google or Alibaba in the cryptoindustry. Will BNB be among those 5%?
Considering their parent company is Binance exchange’s rapid expansion and growth, BNB token is almost a safe bet when it comes to surviving.
The token itself is borderline security and this regulation incertitude could be the biggest threat for the otherwise bright future of BNB token.
Considering the well thought and designed token economy with ever decreasing total supply, BNB has a lot of room for price growth. It is one of the rare coins that is actually recording new highs despite the prolonged bear market in cryptocurrency world.
Binance states that they are going to use BNB for other projects that could generate value. You could use it to participate in new ICOs on Binance Launchpad.
No new BNBs are going to be issued (or at least, not for now). There is no verifiable information on who bought BNBs in the ICO or who currently holds it, but if Binance continues growing at the current rate, people always have the economic incentive to buy BNB to save in fees in the first years.
As the number of Binance users grows, so will the number of BNB token holders – which would lead to increased demand and subsequently to price rise. Binance already reports to have around 2.5 million users per month which is a solid base for their token stability.
Barring any huge incidents like hacks or regulation clamp down on Binance exchange, BNB token is one of the rare coins that looks like a good investment right now, even though it already recorded a huge jump in prices this year. Considering that the hype of Binance mainnet and DEX launch is still in its initial phase and BNB token playing a central role in the whole story, BNB token definitely has a lot of room to go up, perhaps even entering top 4 coins, right behind the untouchables: BTC, ETH and XRP.
So what price can we expect for BNB in 2020?
It appears that BNB can’t decouple itself from the rest of the market and it is stuck in its current price range which is most likely to be the price we will see for BNB while entering in the new year. So $25-$30 per token is the most likely price for BNB in 2020.
Market prediction for Binance Coin BNB Price 2020
With the market being completely unpredictable, forecasting the cryptocurrency price is really more of a gamble and luck rather than a data driven guesstimate.
Let’s throw a glance at the eminent publications and personalities, and their predictions regarding the BNB price, which will give us another point of view to consider:
Walletinvestor is a popular website that does technical analysis-based price predictions of various cryptocurrencies. According to them, BNB is expected to go up almost two time to $28.18 in one year.
Trading Beasts BNB Price Prediction
TradingBeasts algorithm is traditionally much more optimistic in its forecasts but not when it comes to Binance coin – it sees BNB going slightly up to $21.53 by December 2020 which means it will do an almost 2x drop from its current price.
Cryptoground predicts that BNB might fall to $5.80 by the end of 2020. They even added their version of BNB price prediction 2024, where they stated that BNB might reach $28.8 by 2024.
Digitalcoinprice gave a slightly positive prediction saying that by 2019 end, BNB might be just a shred more valuable than now – $29.23 per coin.