Binance Coin and token: Let us dig deeper
Binance Coin (BNB) is the native token for the Binance Smart Chain (BSC) platform that allows developers to build decentralized applications (dApps) and organizations. It was launched in 2020 and has attracted developers in areas like decentralized finance (DeFi), metaverse, and non-fungible tokens (NFT).
BNB is also used widely in the Binance ecosystem. Holders are able to receive discounts when paying for various services.
The Binance Coin price dropped to a year-to-date low of $340 in January. Since then, it has rebounded by about 25%, bringing its market capitalization to $69.28 billion, which is remarkable since Binance raised a few million dollars in its Initial Coin Offering (ICO).
BNB has a circulating supply of 116.5 million coins. Like other popular cryptocurrencies, the number of coins in circulation has been falling because of regular burning. The original supply cap of BNB was 200 million coins.
The BSC is widely used by DeFi developers who love its faster speed than that of Ethereum. According to DeFi Llama, there are 303 DeFi apps in its protocol that have a total value locked (TVL) of $13.3 billion. That makes it the third-biggest protocol after Ethereum and Terra.
Binance Coin (BNB) Price History & Technical Analysis
The BNB price jumped to an all-time high of $703 in May 2021 and then retreated during the initial cryptocurrency sell-off. It then bounced back and retested the all-time level. Today, it is trading at about 40% below its all-time high.
On the daily chart, the price seems to be forming an ascending triangle pattern. In price action analysis, this pattern is usually a bullish sign. It is also attempting to move above the 25-day and 50-day exponential moving averages (EMA).
The price is also trading along the standard pivot point while the Relative Strength Index (RSI) has risen to above 50.
Therefore, because of the ascending triangle pattern, there is a likelihood that the coin will continue rising as bulls target the first key resistance at $600. However, a drop below the hypotenuse of the triangle pattern at $350 will invalidate the bullish view. It will send a signal that there are still more sellers left in the market.
Binance Coin (BNB) Price Prediction for a Year
To estimate where the BNB price will be in a year, we will use the weekly chart to identify key scenarios. The chart shows that the coin has been in a tight range since May last year. Along the way, it is forming what looks like a bullish pennant pattern. In technical analysis, this pattern is usually a positive one for buyers.
Therefore, since the pennant is nearing its confluence zone, there is a possibility that it will have a rebound. If this happens, the coin will likely end the year at or close to its all-time high of about $700, which is about 63% above the current level.
Still, some calculations are more optimistic about where BNB will end the year. Those at LongForecast expect that it will rise by about 277% and end the year at $1,422. However, the Wallet Investor model estimates that BNB will end the year below $100.
Binance Coin Price Prediction for 2025
Binance Coin price has also formed a bullish pennant pattern on the monthly chart. That implies that there is a possibility the price will be higher than where it is by 2025. Therefore, if we assume that the price will rise by about 3x from where it is today by 2025, it means that the price will be around $1,200.
That prediction will depend on the performance of the BSc ecosystem and the evolution of emerging technologies like the metaverse and DeFi.
An estimate by Long Forecast is that the BNB price will start 2025 at around $905 and end the year at $1,422, which is better than where it is today.
A separate estimate by Digital Coin Price is that the coin will rise to $904.5 in 2025, while another prediction by the CoinPricePredict users is that the Binance Coin price will rise to $4,216 by 2025.
Binance Coin in Questions & Answers
Is Binance Coin real?
Yes. Binance Coin is real. Besides, it was designed and built by Binance, the biggest exchange in the world. It is also widely used in the DeFi and other decentralized industries.
Will Binance Coin reach $1,000?
Yes. There is a high possibility that it will soar to $1,000 in the coming years as the industry grows.
Should I buy Binance Coin?
Yes. Binance coin seems like a good investment. Unlike many other altcoins, it has real use cases and is backed by the biggest company in the blockchain industry.
How much will Binance Coin be in five years?
In my estimation, and as mentioned above, the price will be significantly higher than where it is today. At a minimum, the price will likely double in the next five years.
Where do I buy Binance Coin?
You can buy BNB in most centralized and decentralized platforms like Binance and Uniswap.
