Binance Coin (BNB) is more than a utility coin for the popular cryptocurrency exchange, it also works as a form of payment and powers transactions on the Binance Smart Chain. It’s currently the fifth-biggest crypto by market capitalization. But can it hold on to its position as a top crypto in the long term? Here’s why Finder’s panel of over 50 crypto specialists are optimistic about the coin’s future.
What experts say about BNB
Finder’s expert panel doesn’t predict a lot of price action in the coming months. This is unsurprising given crypto prices have been in the doldrums for over eight months and are unlikely to rally in the short term.
BNB is currently priced at around $260 and the panel thinks it could reach $274 by the end of this year. Nevertheless, looking longer term, they estimate BNB could be worth $781 by the end of 2025 and $1,814 by 2030. That’s an increase of around 600% in less than a decade.
Managing director of Digital Capital Management, Ben Ritchie, thinks BNB’s price could go even higher. “Since the BNB chain ecosystem continues to grow, the price may reach as high as $3,000 in 2030,” he said. “BNB Chain also plans to support a layer 2 chain within the network, which can be helpful in the future as they may suffer the same gas fees issues as Ethereum.”
One panel member was not so bullish. John Hawkins, a senior lecturer at the University of Canberra thinks BNB will fall to $180 by the end of this year. Hawkins said that BNB “largely follows the price gyrations of Bitcoin and has little real-world use.”
The biggest cloud on the BNB horizon is the rumored investigation by the SEC. A whopping 57% of panelists believe the SEC will accuse Binance of issuing BNB as an unregistered security. The SEC has already taken action against Ripple (XRP) in a lawsuit that began in December 2020. The SEC argues that a number of cryptos fit the criteria for securities and should have registered and followed SEC rules.
What’s interesting is that the panel doesn’t necessarily think SEC action will have a big impact on BNB. “We have seen this play out with XRP, ETH and others,” said Walker Holmes, co-founder and VP of MetaTope. “I think this is a question of potential monetary penalties. However, at the time of writing, I do not think Binance is at major risk of being taken down.”
Another big risk that BNB faces is regulatory action against the exchange itself. Binance found itself in hot water with several authorities around the world last year, and it isn’t yet clear whether its efforts to beef up its compliance team and activities will be enough. BNB’s future is closely tied to that of Binance.
What it means for investors
BNB investors will no doubt be pleased to hear that experts are optimistic about the coin’s performance in the coming decade. But bear in mind that crypto predictions from financial gurus can vary wildly. Skeptics like Warren Buffett think crypto prices could fall to nothing. He’s not alone. There’s no shortage of financial leaders ready to warn crypto investors that they could lose all their money.
Others think that blockchain technology could transform whole industries. The challenge is that it is a relatively new and unregulated industry and there’s a lot we don’t know about how it will unfold. Many individual cryptos could fail, especially if prices remain subdued for a long period of time. It isn’t clear what impact regulation will have on the industry as a whole, nor whether new rules could have an outsized impact on crypto exchange coins like BNB.
It’s your money we’re talking about, and only you know your investment goals and risk tolerance. Don’t take these types of expert predictions as certainties — do your own research so you fully understand the potential benefits and pitfalls. If you do decide to buy BNB, follow the golden rule of crypto investing and only spend money you can afford to lose. It may increase by 600% by 2030, but it could also collapse completely. The ideal scenario is to position yourself to benefit from any gains without risking financial disaster if it doesn’t pan out.
Earn a $50 bitcoin bonus
Our updated list of the best cryptocurrency apps for 2022 is packed with best-in-class picks. The cryptocurrency apps that landed on our shortlist include perks such as $0 commissions, and one pick that is offering a $50 bitcoin bonus. Check out the list here and get started on your crypto journey, today.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Emma Newbery has positions in Binance Coin, Bitcoin, Ethereum, and XRP. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.