In this article, we will look at the underlying Binance coin fundamentals. We will also look at Binance coin prediction for 2022, 2025, and 2030.
If you have ever traded cryptocurrency, you have come across the Binance exchange platform. This is because Binance is the largest cryptocurrency exchange globally, supporting more than 1.4 million transactions per second.
Binance coin is the cryptocurrency offered by the Binance exchange platform and trades with the BNB symbol.
Binance Coin Overview
Binance coin was launched in July 2017 and ran the Ethereum blockchain ERC-20 standard. During the launch, there was an initial coin offering (ICO).
The coin would later be transferred to Binance’s chain, becoming native to the Binance chain.
Creators of Binance coin agreed that the crypto would have a maximum of 200 million BNB tokens. These tokes will be shared as follows;
- 10 percent to angel investors (approximately 20 million coins)
- 40 percent to the founding team ( approximately 80 million coins)
- The remaining 50 percent to various participants ( approximately 100 million coins)
According to the ICO plan, almost half the funds raised during the process would cater to the project’s marketing. A third of the funding would go to building the Binance platform and performing upgrades.
The Binance platform has a unique way of solving the problem that occurs with an oversupply of crypto. Rather than let the excess Binance coin stay on the market every quarter, Binance uses a fifth of its profits to buy coins in its treasury. These coins are then permanently destroyed.
In a Binance token burn done in April 2021, the platform was able to burn cryptos worth over $596 million.
Binance Coin started trading at below a dollar, and by September 2017, the crypto was trading at around $0.17. After that, the prices would start to rise fast, and by November of the same year, the Binance coin was trading at over $2.
The prices would continue to rise, and by December 2020, the prices were already trading at $38. In January 2021, the crypto was already trading at $44.
However, this was only a glimpse of things to come. By March 10, 2021, the crypto set a new all-time high of $690.
Today, the Binance coin is trading at around $420, indicating how far the crypto has come and people’s trust in the coin.
|Date||Milestone||Binance Coin Price|
|May 10, 2021||All-Time High||$686.31|
|Oct 19, 2017||All-Time Low||$0.03981770|
|7d High||7d High||$430.24|
|7d Low||7d Low||$392.33|
Binance Network has a high reach due to its popularity and has been at the forefront of innovation in the cryptocurrency space.
Today, the Binance chain is used to process payment transactions. In the past few years that it has been in existence, the Binance coin has moved from Ethereum based platform to a native network, allowing it to expand its use to travel bookings, entertainment, online services, and financial services.
In the blockchain space, Binance coin and its network are used to develop decentralized apps (dApps), cross-chain bridge solutions and Binance chain.
The cross-chain bridge solutions allow developers and users to move various digital assets from one chain to another.
Binance coin price prediction 2022
Binance coin has lost 17 percent of its value since the year started and is currently trading at around the $400 level.
Binance has been one of the most volatile cryptocurrencies in existence today. For instance, from November 2019 to March 2021, Binance chain prices shot over 8000 percent when it reached its all-time high.
Binance prices are also influenced by the Binance platform’s buybacks, where they use a fifth of their profits to buy the tokens back. This ensures that there is no oversupply of Binance coins, which pushes the prices of the cryptocurrency upward.
Since the buybacks happen quarterly, I expect that each quarter during the 2022 Binance coin buybacks, the crypto will be recovering and sometimes making gains. This will push Binance prices high as the year progresses.
Armed with these facts, I can estimate how much Binance will grow in 2022 and make a solid Binance coin price prediction for 2022.
For starters, I expect the Binance coin to continue with its volatility. Therefore, my prediction is that the prices will trade within the blue areas shown on the daily chart below from today to the end of the year. My analysis also shows that Binance will close the year at around the $600 resistance level.
This will be a 46 percent price increase from the current price. Of course, it is also a conservative figure, but I expect the Binance prices to play out close to my predictions based on previous price history.
I also expect the Binance coin to trade within the blue area on the daily chart shown below. This means between now and the end of the year, I also expect the prices to hit support level of $317 at some point.
Binance Coin daily chart
Binance Coin Price Prediction 2025
My Binance coin prediction for 2025 indicates that the prices will be trading at a level close to $1,400. This analysis is based on two factors, past performance of the Binance coin and fundamental analysis that favour a strong bullish move between now and 2025.
In my previous Binance price coin analysis for 2022, I predicted that the crypto is likely to grow at a rate of 46 percent in 2022. For 2023 and 2024, I expect the Binance coin to also grow at the same rate of between 40 to 60 percent per annum. This growth rate puts the Binance coin at around $1400 level by 2025.
Also, based on fundamental analysis, where Binance uses a fifth of its profits to buy back the crypto and burn them, this aggressive move is plausible. This is because this buying and destroying of the crypto boosts its growth and prevents oversupply.
Binance Coin Price Prediction 2030
My Binance coin price for 2030 indicates that the crypto is likely to be trading at around the $12,000 level by 2030. This is based on previous historical annual growth of 40 percent to 60 percent per year.
In a worst-case scenario where the prices are not very aggressive during the period between now and 2030, I still expect the prices to increase by an average of 20 percent annually. This means the prices will be trading at around $1850 percent by 2030. This will be a 420 percent increase in prices from the current prices of $400.
The price prediction for 2030 is also because the Binance platform heavily supports the Binance coin. In addition, the platform being the largest crypto trading platform has enough resources to ensure the project does not fail.
Is Binance Coin a Good Investment?
Based on my previous analysis, Binance coin will have a growth rate of about 40 to 60 percent per annum.
Based on my analysis, even in worst-case scenarios, Binance coin will still be able to have a return on investment of about 20 percent per year. This is still a significant price increase, especially if invested for the long term.
Traditional investment platforms very rarely achieve a 20 percent return on investment. Therefore, based on these facts, my opinion is that the Binance chain is a perfect investment for long-term investors and entrepreneurs.