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 2021 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.
While you are here, check out our Binance review as well.
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.
Captainaltcoin’s BNB Price Prediction 2021
All crypto fans and holders have been enjoying the last couple of months of 2020 and the start of 2021. Bitcoin smashed all resistance levels and kept setting new all time highs.
All altcoins followed suit and their value in dollars skyrocketed. Additionally, there were a couple of short but very profitable altcoins bull seasons that saw new and old altcoins surging, bursting through old all-time high records and setting new milestones.
BNB was one of those altcoins that had its five minutes of fame where it outperformed bitcoin and the rest of the market by a lot.
Is that growth sustainable and can Binance Coin reach new all time highs in 2021 is the question on mind of every current and potential BNB holder.
Odds are that bitcoin is not yet done with rampaging the bears, which consequently means that altcoins are set to see more bull runs in 2021.
Should this be the case (we firmly believe that), BNB`s current all time high is only a temporary stop station.
What this means for BNB price in 2021?
This means that BNB is almost guaranteed to rise in USD denomination. Thanks to another ingenious move of Binance CEO, who is one of the top hustlers of the industry, building and innovating ( and copying/stealing from others), BNB saw an unprecedented rise with the launch of Binance Smart Chain. BSC as it is shortly known, it just a centralized fork of Ethereum that aims to exploit the terrible state of Ethereum gas fees and steal as much dApps and volume as possible. So far, they are doing a great job as many projects have ported over to BSC since the switch from one blockchain to the other is seamless and easy to do.
Will the surge of BNB continue or stop? It hinges on what Ethereum does in the near future with its EIPs and improvements. If ETH manages to solve or at least mitigate the issue of gas fees, BNB will probably cool off a bit. If Ethereum fails to deal with the high fees issue, BNB might do another rocket launch which could see it reaching 1 million satoshis per coin, which could be $500+, depending on the bitcoin price at that time.
Binance Coin – Long-Term Price Prediction
The majority of projects will fail — some starsntups 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 3 coins, right behind the untouchables: BTC and ETH.
So what price can we expect for BNB in 2021?
It appears that BNB can decouple itself from the rest of the market and break its current price range which can lead to new ATH in the range $250-$300 per token.
Market prediction for Binance Coin BNB Price 2021
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 range around the current levels and sit at $315.18 by the end of the 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 up to $211.53 by December 2021 which means it will drop slightly from its current price.
Digitalcoinprice gave a slightly positive prediction saying that by 2021 end, BNB might be almost 2x more valuable than now – $411.23 per coin.