- Binance’s native token, Binance Coin or BNB, often sits within the top 10 cryptocurrencies on CoinMarketCap with a price around ~$22
- Binance, one of the world’s largest cryptocurrency exchanges, has been busy in 2020 with new partnerships, products, and investments
- BNB’s long-term price predictions are far and wide, but steady growth seems most likely
At the time of this writing, Binance’s native coin (BNB) is trading at ~$22 USD with a market cap of $3,161,586,873 USD. It’s often in the top 10 cryptocurrencies on Coin Market Cap. BNB currently sits at number 8.
In this article, we’ll cover all you need to know about BNB – how it started, recent movements, and where we see it going in the future. Let’s dive in.
A History Lesson
Binance is a cryptocurrency exchange founded in 2017 by Changpeng Zhao. As of January 2018, Binance was the largest cryptocurrency exchange in the world according to its trading volume.
Binance launched its BNB token through an ICO 11 days before the company launched its exchange. Originally, BNB was an ERC-20 token running on the Ethereum network with a total supply capped at 200 million coins. However, those coins were swapped with BEP2 BNB in April 2019 when the company launched its Binance Chain mainnet.
Since then, BNB has seen volatility in its price and market cap. The coin’s 52 week high and low has been $27.12 and $6.96, respectively.
The start of 2020 saw BNB trading at $13.69 with a market cap of ~2.1 billion. It climbed up to ~$25 in early February.
And then COVID-19 hit. It’s no secret that the pandemic wreaked havoc on the world’s financial systems. Cryptocurrencies were no exception. Bitcoin dipped so low that traders called March 12, 2020, Black Thursday. Of course, Binance isn’t quite in the same realm as Bitcoin, which crashed from $7,300 to $3,900 in roughly 24 hours.
Still, BNB dropped to $9.60 on March 12. It brought its market cap with it, sinking to ~$1.4 billion. It was at $4.1 billion just a few weeks prior. Ever since then, the coin has been making its way back up the charts. In July, BNB outperformed Bitcoin by 17%. Still, it hasn’t reached its 52-week high price again. But its performance has made people bullish on its future.
Binance Power Plays
The most interesting movements haven’t been BNB itself, but Binance. Throughout this year, the company has been making strategic moves that aim to substantiate BNB in the long-term, including three acquisitions.
A few weeks after Black Thursday, Binance announced its acquisition of BxB, a crypto company that released a stablecoin backed by the Korean Won. Unsurprisingly, Binance announced that it would launch an exchange in South Korea.
Around that same time, Binance introduced its own cryptocurrency debit card, aptly named Binance Card. In July, Binance CEO Changpeng Zhao tweeted that the company had begun beta-testing the product in Malaysia. Binance had been working with Swipe, a company specializing in crypto wallets and debit cards. On June 30, Binance acquired Swipe.
April also saw Binance plant roots in India and Indonesia, two emerging crypto markets. Binance also incubated a Nigerian social payments app. The company also released a white paper proposing a new smart contract enabled blockchain.
This past May, Binance made a deal with CoinPayments, the world’s leading cryptocurrency payments processor, to support the BNB token and enable vendors across the world to start using BNB.
On July 9, the P2P file-sharing service, BitTorrent, announced users could use BNB and Binance’s USD stablecoin, BUSD as payment options. The relationship between the two companies run deep. Back in January 2019, BitTorrent launched its BTT token on Binance’s platform, netting $7.1 million in under 15 minutes.
And in late August, Binance took another step towards Decentralized Finance (DeFi) by partnering with two companies to launch its new integration protocol, called DeFi staking. When it was released, people oversubscribed within 30 minutes. The first week of September saw Binance release another DeFi product.
BNB Price Predictions
It’s clear that Binance has bigger plans than just its token. Changpeng Zhao wants to strengthen the crypto market and facilitate mass adoption. But let’s revisit BNB and where it might go in the future.
Crypto-rating.com forecasts the coin reaching ~$27 within a month, ~$38 within 6 months, and ~$40 by next year.
Digital Coin Price is more optimistic with a ~$45 price by the end of 2020. Although, they think BNB will see slower growth in 2021, climbing up to ~$50. A longer-term forecast sees BNB at ~$60 by 2024, surrounded by prices hovering between ~$35 and ~$47 before and after that year. The website still counts the token as profitable.
On the other end of the spectrum, Coin Fan’s bullish prediction has BNB reaching ~$390 by the end of 2020. Other predictions are more conservative in their estimates. It’s not uncommon to think BNB will stay within the ~$20 zone, although it seems likely it’ll break $30 soon if it continues its upwards trajectory.
The BNB token may not challenge Bitcoin’s dominance anytime soon, but it’s backed by Binance’s strong infrastructure and strategic business moves that might benefit the crypto community – and society at large – in the long-run.