By Connor Sephton12:12, 7 September 2021 • Updated
BNB price predictions have been boosted by rising trading volumes in the crypto markets, and the accelerated use of Binance Smart Chain
Binance Coin had humble beginnings and launched in the summer of 2017. All of the coins were pre-mined before an initial coin offering, with a price set at $0.10 per BNB. Although a crypto winter followed in 2018, BNB has proven resilient in navigating the ups and downs of the altcoin markets – and fast forward to 2021, Binance Coin’s price carries a lot of interest.
Demand for BNB price predictions has grown following a dramatic acceleration in the cryptocurrency’s price. Binance Coin more than doubled in value over the course of 2020 – rallying 146% from about $15 to $37 by the year end. But the true fireworks have been reserved for 2021, as a bull run gripped the market. In under nine weeks, BNB’s price exploded by a staggering 824% – and hit dizzying heights of $342.
But what is BNB – and do Binance Coin price predictions suggest that we will see this major altcoin break records once again this year? Here, we are going to look at the fundamentals behind BNB’s price, and the factors that influence this cryptocurrency the most.
To answer this, let’s have a quick recap of what Binance Coin is actually for. Launched by the major crypto exchange of the same name, BNB is designed to serve as the lynchpin of the ecosystem. One of the main attractions lies in how this altcoin can be used to unlock discounted trading fees. BNB also has a starring role in the Binance Smart Chain, which is vying to become a rival to Ethereum that offers greater levels of scalability along with lower transaction fees.
As you would expect, one of the most vocal supporters of BNB and the network it supports is Binance CEO Changpeng Zhao, who is also commonly known as CZ. In a recent tweet, he said:
“#BSC (of which I am just a community member), is not replacing ETH, but it is overtaking ETH. Lower fees enable more transactions, which leads to a more inclusive #DeFi ecosystem.”
Although CZ stresses that he does not give financial advice, his enthusiasm for BNB price predictions and this cryptocurrency’s future potential are clear to see. He has retweeted posts that describe this altcoin as far superior to ETH – the world’s second-largest cryptocurrency.
At the time of writing, this digital asset has a market cap of about $41.7bn, meaning that it has also beginning to gain ground on Ether, which has a total valuation of $195.5bn. Although talk of a ‘flippening’ may seem rather far-fetched, BNB proponents are adamant that this digital asset has the potential to gain ground in the future.
CZ has also shared posts that suggest BNB coin price predictions have had the potential to be wrong over the years, with the narrative failing to take account of the bigger picture.
One recent tweet he amplified explained how many people were reluctant to invest in 2017 because it was too risky, while it wasn’t worth investing in 2018 because the market had crashed. Although there was interest in 2019 and 2020 to see whether Binance Coin would gain momentum, one narrative being put forward in 2021 is that BNB has already pumped – meaning it is too late to enjoy further price movements.
That same tweet argued that we are still at an early stage in the crypto market’s evolution, adding:
“A $500 investment in $BNB back in mid-2017 would have made you a millionaire today.”
It should be noted that in June 2021, UK financial regulator the Financial Conduct Authority (FCA) issued a warning about Binance Markets Limited (BML) and the Binance Group, ruling that BML “is not permitted to undertake any regulated activity in the UK” as it lacks authorisation.
The watchdog also advised people to be “wary of adverts on social media promising high returns on investment in cryptoassets”.
Binance, the world’s biggest cryptocurrency exchange, said that “BML is a separate legal entity” and the FCA notice would have no “direct impact on the services it provides from the Binance.com”.
The Binance Group acquired BML in May 2020 and has not yet launched its UK business or used its FCA regulatory permissions.
When it comes to BNB price predictions for 2021, the overarching sentiment appears to be that now is the time to buy the dip – and gain exposure to the crypto asset while prices are suppressed. But of course, do remember that the markets can be very unpredictable, and what has happened in the past isn’t always an accurate prediction of the future.
BNB price predictions tend to be the most bullish when there is a flurry of trading activity on the platform. Binance has repeatedly seen volumes break new ground as traders attempt to capitalise on the new highs seen in Bitcoin, Ether and other cryptocurrencies. With BNB opening the door to reduced fees, demand for the 154.5 million coins in circulation will undoubtedly rise when crypto enthusiasts are vying to log on to their accounts in a hurry.
As we mentioned earlier, the increasing role of Binance Smart Chain is also significant. Several DeFi projects have already made the leap – shifting their protocols from Ethereum as they seek to ensure that transactions are affordable and fast for users. With the ETH 2.0 upgrade expected to be more than a year away, demand for this blockchain could be set to rise further as 2021 continues. Work has also been under way to address centralisation concerns.
Binance Coin price predictions are helped further by the fact that the exchange behind BNB is regularly entering into high-profile partnerships and collaborations with other crypto projects – and in other cases, offering a Launchpad service that enables new ideas to reach the market far faster than they may have done otherwise. Such agreements typically result in BNB being accepted by a greater number of merchants, meaning there is much greater scope for this cryptocurrency to be used for purchases.
According to a Binance Coin price prediction 2021 from Long Forecast, BNB could be on track to hit $592 in October. From there, its analysis suggests that prices could rally even further as 2021 comes to an end. A closing price of $687 is anticipated for November, while $752 is the target price for New Year’s Eve.
Wallet Investor strikes a more cautious tone – anticipating that the maximum price that BNB will hit may be $583 by the end of this year.
Digital Coin Price is also bullish on a much longer time frame. Setting targets for the next seven years, it anticipates prices will hit $730 in 2021, $835 in 2022, $986 in 2023, and break the $1,000 mark in 2024 at $1,153.
Of course, these algorithms can have imperfections, so it is always worth performing your own technical analysis before gaining exposure to a cryptocurrency.