Cryptocurrencies /
Milan Cutkovic
- Cryptocurrencies
- BNB
- Price
- Predictions
In this article, we will explore Binance Coin´s (BNB) historical performance and reflect on its short but eventful history that was marked by several major events and periods of high volatility.
We will also highlight the factors that have been influencing the price of BNB in the past and dive into the forecasts for BNB from 2024 to 2050.
Forecasts are speculative in nature, particularly in the cryptocurrency space, due to its brief history and volatile nature. Nevertheless, forecasts are important as they can provide investors with food for thought and help them to make more informed decisions. Comparing forecasts from multiple sources can also help investors gauge the current market sentiment.
What do analysts and institutions around the world predict for BNB? Boom or bust? Before we find out the answer to that, let´s have a look at BNB´s history and past performance.
What affects BNB´s price?
BNB is a cryptocurrency that powers Binance's decentralized finance ecosystem and serves as the native coin for the BNB Beacon Chain and BNB Smart Chain.
The BNB Beacon Chain allows different blockchains to work together and lets people stake and validate transactions on the Binance network. The BNB Smart Chain is another blockchain that runs alongside it. It can handle smart contracts, works with Ethereum-based apps, and uses a method called delegated proof-of-stake to reach agreements on transactions.
The coin was launched in 2017 through an Initial Coin Offering (ICO) by the popular crypto exchange Binance and was issued at a price of 20,000 BNB for 1 Bitcoin. Note that BNB coins purchased do not represent a stake in the company Binance.
BNB was issued as an ERC-20 token running on the Ethereum network with a total supply of 200 million coins. During the ICO, 100 million BNB was offered, and an auto-burn mechanism ensures that the total supply does not exceed this limit.
Burning is an activity that removes tokens from the circulating supply, thus increasing the value of each coin. The number of coins burned varies depending on the price and number of blocks generated on the BNB Smart Chain. For example, Binance stated in January 2024 that $636 million in BNB was burned during its 26th quarterly BNB burning.
BNB is used for various purposes, ranging from travel to entertainment and financial services. Many users also use BNB to pay transaction fees on the Binance platform. Binance claims that using BNB can save users up to 25% on spot and margin trading fees and up to 10% on futures trading expenses.
The main factor affecting the price of BNB is the overall state of the cryptocurrency market. During a bull run, BNB is likely to follow the other cryptocurrencies higher. In contrast, BNB is likely to suffer in a bearish market environment.
The adoption rate of BNB is another crucial factor that can influence the price of the coin. BNB is primarily used to pay for transactions and fees on the Binance exchange. More merchants accepting BNB as a payment method is seen as a positive development and could lead to an increase in value.
Unlike most other major cryptocurrencies, BNB is heavily dependent on the performance of one single crypto exchange: Binance. While this has historically been a positive element, particularly during Binance's ambitious expansion period, it can also be a disadvantage. For example, a drop in the number of Binance users or the exchange's regulatory concerns could have an impact on the price of BNB.
In November 2023, BNB fell over 9% following news that the US Justice Department had filed criminal charges against Binance and its CEO, Changpeng "CZ" Zhao.
Historical price performance
Year | Open Price |
January 2018 | $8.53 |
January 2019 | $6.11 |
January 2020 | $13.73 |
January 2021 | $37.33 |
May 2021 | $623.25 |
January 2022 | $511.7 |
August 2022 | $283.5 |
January 2023 | $246.1 |
August 2023 | $240.9 |
Previous cycles highs and lows
Year | High | Year | Low | Pullback % |
2018 | $26.5 | 2018 | $4.1 | -84.53% |
2021 | $704.6 | 2022 | $183.4 | -73.97% |
Like many cryptocurrencies, BNB went through several boom-and-bust phases. BNB launched in 2017 and saw a steady increase in the following 4 years, with the occasional sell-off. The cryptocurrency skyrocketed in 2021, fueled by Binance´s rapid growth, expansion in the Decentralised Finance (DeFi) sector, and a record number of BNB tokens burned. It reached a high of $706 in April 2021, having started the year at $41.
The stratospheric rise did not last long though, as the price of BNB collapsed in May 2021 amid fears that the rally is unsustainable. The coin collapsed to a low of $210. During the summer months of 2021, BNB began to recover, eventually reaching $700 in November 2021.
The enthusiasm faded once again, however, as the cryptocurrency market entered another bear market phase. BNB faced a prolonged sell-off, which culminated with the cryptocurrency finding itself back at the $200 level by June 2022. Since then, the cryptocurrency has consolidated within a band of $200 to $400.
The current state of BNB
BNB is benefiting from the bullish sentiment in the cryptocurrency market, but its underperformance compared to its peers can be attributed to Binance´s regulatory issues in the United States.
Binance was fined $4.3 billion by the US authorities and founder CZ faces up to 18 months in an American prison. While the market is confident that Binance will survive given its size and prominence, there are concerns about the exchange´s reputation and what this may entail for BNB.
BNB price predictions 2024-2050
Source / Year | 2024 | 2025 | 2030 | 2040 | 2050 |
Coinpedia | $541 | $710 | $2,081 | * | * |
CryptoNews | $700 | $1,100 | $2,500 | * | * |
Digital Coin Price | $654 | $769 | * | * | * |
TechNewsLeader | $550 | $760 | $5,175 | $116,312 | $198,223 |
AmbCrypto | $437 | $512 | $1,127 | * | * |
CoinJournal | $960 | $1,171 | $2,206 | $8,925 | * |
BNB price forecasts 2024
Coinpedia predicts that BNB could reach a high of $541 in the most bullish scenario, citing BSC (Binance Smart Chain) strong role in the DeFi sector as the main reason. They note, however, that a potential economic slowdown and adverse market environment could see BNB trade as low as $337.
CryptoNews has a bullish outlook for BNB and predicts that the coin will reach the $700 level by the end of 2024. They see Binance continuing to grow and attract more users, increasing BNB utilisation and value.
BNB to reach $700 by 2024
DigitalCoinPrice, which uses a combination of technical indicators and historical data, predicts that BNB will reach a high of $654.30 in 2024, with an average price of $586 for the year.
TechNewsLeader expects that BNB will reach an average price of $449.90 and a high of $550.45 in 2024.
AmbCrypto´s forecasting tool sees BNB trading in a range of $291.78 to $437.67 in 2024.
BNB price forecasts 2025
Coinpedia predicts that BNB will trade as high as $710 by 2025, owing to the Binance ecosystem's expanding array of services.
CryptoNews sees BNB reaching a high of $1,100 by 2025 driven by the growing importance of the BNB chain, with more developers flocking to the network.
DigitalCoinPrice forecasts BNB hitting a high of $769 in 2025.
TechNewsLeader expects BNB prices to grow further, driven by increased participation from network developers. They anticipate BNB to reach a high of $760.39.
AmbCrypto´s forecasting tool predicts that BNB will trade between $341.64-512.46 in 2025.
BNB price forecasts 2030
Coinpedia sees BNB trading as high as $2,081 and as low as $1,819, with an average price of $1,950.
CryptoNews expects that BNB will reach $2,500 by 2030. They point out that Binance controls the supply of BNB, making it a deflationary asset. They anticipate that demand for BNB will rise in tandem with the expansion of the Binance ecosystem and the DeFi space.
BNB may reach a high of $2,235 in 2030, according to DigitalCoinPrice´s AI tool.
TechNewsLeader shares the bullish outlook for 2030, with BNB expected to reach $5,175 according to their analysis.
AmbCrypto´s forecasting tool predicts that BNB will range between $751.82 and $1,127.72 in 2030.
BNB price forecasts 2040
Due to the distant timeframe and the volatile nature of cryptocurrencies in general, predictions for the year 2040 are scarce. However, both sources who issued forecasts for 2040 share a bullish outlook, although the stark difference between the predicted price levels highlights the difficulty of issuing long-term forecasts for cryptocurrencies.
Coin Journal, which uses an automated technical analysis tool, predicts that BNB will reach $8,925 by 2040.
According to TechNewsLeader, BNB will rise at an exponential rate between 2030 and 2040, reaching $116,312 by that time.
BNB price forecasts 2050
Long-term predictions for the year 2050 are limited due to the volatility in the cryptocurrency market.
TechNewsLeader expects BNB to trade between $151,620 and $198,223 in 2050.
Conclusion
While the long-term forecasts for BNB vary drastically, most analysts are optimistic about the coin and expect prices to increase in the coming years and decades. The most cited reason for the projected price increase is BNB´s growing importance in the DeFi space, followed by the expected growth in the adoption rate of BNB, that is, the usage of the coin outside of Binance´s platform. These factors, combined with ongoing developments within the Binance ecosystem, contribute to the overall positive outlook for BNB. However, it is crucial to note that the cryptocurrency market is highly volatile, and unforeseen events or regulatory changes could significantly impact BNB's future trajectory.
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References to forecasts and past performance are not reliable indicators of future results.
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Milan Cutkovic
Milan Cutkovic has over eight years of experience in trading and market analysis across forex, indices, commodities, and stocks. He was one of the first traders accepted into the Axi Select programme which identifies highly talented traders and assists them with professional development.
As well as being a trader, Milan writes daily analysis for the Axi community, using his extensive knowledge of financial markets to provide unique insights and commentary. He is passionate about helping others become more successful in their trading and shares his skills by contributing to comprehensive trading eBooks and regularly publishing educational articles on the Axi blog, His work is frequently quoted in leading international newspapers and media portals.
Milan is frequently quoted and mentioned in many financial publications, including Yahoo Finance, Business Insider, Barrons, CNN, Reuters, New York Post, and MarketWatch.
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