Recently, Ethereum, the largest general-purpose blockchain with smart contract support, has been suffering from severe network congestion and tremendously high fees. Developers looking to build replacements have built blockchains known as Ethereum killers. Ethereum-killer cryptos are all quite similar to Ethereum in function, and many are nearly identical copies, but they all have at least a few tweaks.
Many of them toy with the consensus mechanism to increase transaction throughput and lower transaction fees, but it’s often at the expense of decentralization or security. The most-used Ethereum killer right now is Binance Smart Chain (BSC). Other popular examples include Cardano, Polkadot and Solana. BSC is the outlier because it already has many decentralized applications (DApps) built on the network and a ton of active users, unlike the other listed networks that have few DApps or none. This also makes it more difficult for investors to find an unbiased BNB price prediction. It has a large group of supporters including many influencers who, like every other crypto, want to promote their favorite token and spread outlandish BNB price predictions.
What is Binance Coin (BNB)?
Binance Coin (BNB) was launched via an ICO from June 26 to July 3, 2017. BNB was initially launched as an ERC-20 token on the Ethereum blockchain with a total supply of 200 million tokens. As hard as it might be to believe now, the ICO price for the tokens was 15 cents each. That was clearly a great opportunity but is now a good time to buy Binance Coin too? It depends on your risk tolerance and your conviction in the Binance ecosystem.
In early 2019 Binance launched its own blockchain and swapped its ERC-20 tokens at a 1:1 ratio for Binance blockchain native tokens (BNB). Beginning in late 2017, Binance instituted a burn program that will continue until the total supply has been reduced from 200 million to 100 million. This burn program alone is responsible for adding quite a bit of value to BNB.
It’s impossible to speak about Binance Coin (BNB) without mentioning the rest of the Binance ecosystem. The Binance ecosystem includes the Binance exchange, the largest crypto exchange in the world by volume.
It also includes investment and fundraising through Binance Labs and the Binance Token launch platform. Digital asset research with a cryptocurrency information platform, Binance research, provides institutional-grade research reports and the Binance academy. Finally, it includes Binance’s blockchain charity foundation and the Trust wallet, Binance’s official crypto wallet.
The Binance ecosystem is important because its add to the value of BNB. As the Binance ecosystem expands, the use cases for BNB may also expand, making it more valuable.
You can identify many reasons why BNB deserves to be one of the top cryptocurrencies. With everything it has going for it, it seems like a safe bet that its best days are yet to come, which is very good for investors.
BNB Market Position
Binance Coin is one of the largest cryptocurrencies in terms of market capitalization. Its market cap of more than $42 billion makes it the 5th-largest cryptocurrency, beating out the next biggest by a long-shot.
Market capitalization is often a more important metric to understand than the price per token. Cryptos with lower market caps can appreciate much more quickly and easily because they require less liquidity for the same price action. BNB’s massive market capitalization of $42 billion, meaning that it will be more difficult for its price to rise dramatically than smaller tokens like Shiba Inu. It is a bit easier to give an accurate BNB price prediction than many other altcoins because it is significantly less volatile.
BSC has easily one of the largest decentralized finance (DeFi) ecosystems built on top of it, beating out 2 of its major competitors — Cardano and Solana. Both Cardano and Solana have exploded in price and hype, but they simply don’t have many functional DApps built on them yet. Cardano is yet to launch its main network and has only recently released its testnet with smart contract support. Solana is still in its mainnet beta stage but seems to be further along and generally more functional than Cardano.
Both competitors likely will be quite successful and could beat out BSC in the future. It’s also possible that Ethereum 2.0 solves its network’s problems enough so that none of these rival networks is necessary. Until one of these — or another not listed — is decided to be the best general-purpose smart contract supported blockchain, it’s unclear which ones will succeed and which will falter.
WalletInvestor’s Bullish BNB Price Prediction
Most of the top cryptocurrency price analysts are bullish on Binance Coin and predict it will rise dramatically throughout 2022 and beyond. WalletInvestor is a useful website with an innovative price forecast system. It uses machine learning to analyze cryptocurrencies and other kinds of assets. The site’s forecast for BNB is extremely positive, predicting that it will be trading at around $450 by July 2023, however, this seems unlikely given the current state of the market.
It also provides a 5-year BNB price prediction, saying it will reach $1,259. Neither of these predictions will be completely correct because it is impossible to predict exactly what price an asset, let alone a volatile cryptocurrency, will trade at in a year or 5. However, they can be useful tools to get a good idea of reasonable scenarios.
Jay Manila’s Bearish BNB Price Prediction
It’s quite rare to see a bearish BNB price prediction, but some analysts believe it will not be able to sustain its value for much longer. Jay Manila, a market analyst with Coin Quora, offers a few strong suggestions for BNB’s future. He uses technical analysis, a way to make predictions by finding patterns and identifying trends in market data, to propose a bullish BNB price prediction and a bearish price prediction. He says that the direction BNB takes will depend on whether it retains its dominant position in the market. If it does, it might skyrocket past $420, above recent resistance levels.
If BNB fails to retain its market share and dominance, Manila says it may fall to as low as $299 and continue to consolidate around those levels. Technical analysis is not perfect, but it’s still one of the best tools for cryptocurrency investors to predict the market.
Monthly BNB Price Predictions
For October, November and December 2022, BNB is not expected to drop below $275 and may rise as high as $335. While the price predictions you will find elsewhere see the token rising steadily, it could have quite a rocky journey as it closes out the year.
Is Now a Good Time to Buy BNB?
Whether or not now is a good time to buy Binance Coin can be a difficult question to answer. No one can give you the best possible advice for your distinct situation, let alone give a perfect BNB price prediction. For some investors, now could be an amazing time to buy BNB and for others, it might not be. A lot depends on each investor’s risk tolerance and time horizon. It may also seem like the perfect time and a freak crash unseen by everyone’s BNB price predictions might retroactively make it a bad time to invest.
If you don’t mind taking some risks and can tolerate possible further price declines, then this might be a good time to start investing. Dollar cost averaging is an excellent strategy for building a position over time. Investors who dollar cost average make small, regular purchases for a prolonged period to average out their cost basis instead of one or two large buys. This strategy eliminates the need to try and time the market while simultaneously ensuring a low overall average price.
Bitcoin and the entire crypto market remain mired in a bear market that could last for a long time. Bitcoin is down about 70% from the November peak, and the possibility remains that it could go lower. No one knows where or when Bitcoin will bottom, but it’s possible Bitcoin could be close to a bottom right now.
However, Bitcoin declined around 85% from its peak during the previous bear markets. A similar percentage drop would put the price of Bitcoin down around $10,000, a 50% decline from the current price. If that were to happen, that would most likely also drop the price of BNB significantly.
How Long Will the Crypto Bear Market Last?
The truth is no one knows how long the bear market will last or where Bitcoin will bottom. It would be a minor miracle if anyone made a perfect Bitcoin or BNB price prediction. After the collapse from $28,000, Bitcoin hit a low of $17,622 (Binance) on June 18. That equates to a decline of almost 75% from the November peak. Could that be close to a bottom? Sure, or there could be more pain to come.
Looking back at the last two bear markets, Bitcoin declined approximately 85%. So, a similar percentage drop in this bear market would put the price of Bitcoin near $10,000. That would be an additional 50% decline from the current price.
Bitcoin Weekly Chart
Looking at the Bitcoin weekly chart above, you can see the bull and bear market cycles. The Bitcoin halving events are also marked on the chart; you can see where they fall within each market cycle. Typically, the next bull market will begin after the halving.
If that trend continues, the next bull market will not begin until sometime after the next halving in April 2024. This means there is plenty of time to dollar cost average into positions for the next bull market. Using a dollar cost averaging strategy for most people is an intelligent way to invest.
Will BNB Ever Reach All-Time Highs?
The all-time high for BNB was set on May 10, 2021, at $691.80 (Binance), giving BNB a market capitalization of more than $103 billion. The big question is, will BNB ever reach or exceed that all-time high?
BNB Daily Chart
Currently, BNB is down about 68% from its all-time high, but if Bitcoin declines further, BNB will likely follow. Nothing fundamentally has changed with the Binance ecosystem or BNB. The price decline BNB is experiencing is primarily a result of the crypto bear market and the risk-off environment.
There are no guarantees, but one of the safest bets in crypto has to be that BNB will not only reach its all-time high but surpass it at some point. Of course, much of this will also depend on what Bitcoin does during the next bull market. If BNB does follow Bitcoin to its all-time high, now might be the best time to buy Binance Coin.
Is Binance Coin (BNB) a Good Long-Term Investment?
Contrary to many of the thousands of cryptocurrencies today, BNB has real utility. It is the native token of the Binance ecosystem, including the Binance centralized exchange (CEX), the world’s largest crypto exchange by volume.
The Binance ecosystem also includes the Binance Smart Chain (BSC), and BNB is the native token of that chain as well. The Binance Smart Chain (BSC) has smart contract functionality and is focused on facilitating fast decentralized trading. BSC is home to the Binance decentralized exchange (DEX) powered by the BNB token. Everyone who wants to use BSC has to buy at least a small amount of BNB.
Another positive for BNB is the burn program that Binance launched in late 2017, intending to burn 50% of BNB’s total supply. This action will continue to increase the scarcity of BNB putting upward pressure on the price. All these factors should make BNB an excellent long-term investment. Now might be a fantastic time to buy Binance Coin because it is at a heavy discount due to the crypto market crash.
How to Buy Binance Coin (BNB)
You can purchase BNB from the following exchanges.
- eToro – stock and crypto trading platform
- Binance.US – Exchange for US investors
- FTX – Buy crypto and NFTs
- Kucoin – Crypto spot and futures exchange
Decentralized Exchanges (DEX)
- Binance DEX – On BSC
- PancakeSwap – Native to BSC
- SushiSwap – Connect with MetaMask or Binance wallet
Investors will need BNB in their wallets first before they can transact on DEXes.
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) and USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections and not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.
How to Store BNB Safely
Most crypto investors know you shouldn’t store large amounts of crypto on exchanges. Doing so exposes you to the risk of loss from a hack or failure of the exchange. The Cryptopia exchange was hacked and subsequently failed; many investors may never get back the crypto they had stored on Cryptopia.
Crypto investors are responsible for managing and keeping their crypto safe. As a responsible investor, it is always wise to use personal crypto wallets. At a minimum, a software (hot storage) wallet like Coinbase Wallet should be used, and for those who want the best security, a hardware (cold storage) wallet should be used.
For those wanting the best security, the Ledger Nano S, Nano S Plus or Nano X hardware wallets are some of the best on the market. One feature that makes hardware wallets so secure is that unless you are using them, they are isolated from the internet. Internet isolation and other security features make them almost impossible to hack.
How Does BNB Fit in the Bigger Picture?
BNB is a significant force in the crypto market. The expansion of the Binance ecosystem in such a short time signals that BNB will continue to be a major force. Being the native token of the largest crypto exchange by volume cements it as a top-tier cryptocurrency.
However, other up-and-coming tokens look to cut into BNB’s dominance. Those tokens are FTT and KCS; both are exchange tokens. BNB’s competitors in the Ethereum-killer sphere, Cardano and Solana could also cause trouble for the token in the future.
FTT is the native token of the FTX exchange that was launched on May 8, 2019. Like BNB, FTT is a deflationary token; 33% of the trading fees generated on the exchange are used to buy and burn FTT. Users of FTT on the FTX exchange receive discounts on trading fees and tighter spreads. While other exchanges struggle in this bear market, FTX continues to grow.
KCS is the native token of the Kucoin exchange, launched in 2017. KCS users not only get discounts on trading fees but also receive daily cryptocurrency dividends, which amount to a share of 50% of the daily collected trading fees. Like BNB, KCS is also deflationary through a buyback and burn mechanism. The initial supply of 200 million tokens will be reduced to a final supply of 100 million tokens.
How Long Will it Take for BNB to Reach $1,000?
Reaching $1,000 should seem like a long way away for BNB investors. It would require more than a 250% increase in price.
However, in the cryptocurrency market, a 250% appreciation over a year or 2 isn’t entirely outlandish. In 2021, BNB itself rose from $40 to almost $690 — a 1,625% increase — in a little more than 3 months. Unfortunately, BNB holders likely won’t ever see another similar run in such a short period again.
The market capitalization of the token is much higher than it was at the beginning of 2021, so it would require drastically more liquidity to increase the price by the same percentage. BNB could easily reach $1,000 eventually, but it may take a few years. Don’t expect it to break into 4 digits until the next bull market.
So, is Now a Good Time to Buy Binance Coin (BNB)?
With all that Binance and BNB have going for them, the future looks promising. But, whether or not buying BNB at the current price makes good investment sense will vary depending on the investor.
If you are a long-term investor, starting to dollar cost average into BNB may prove to be a wise decision. But, caution is warranted; each investor will have to decide how much risk and possible downside they can withstand. After all, crypto winter is here and could last for a long time.
Frequently Asked Questions
Is now a good time to buy BNB?
It could be a fantastic time to buy BNB, depending on your risk tolerance and investing time horizon. BNB may not see a major resurgence until this bear market ends.
Can BNB reach new all-time highs?
A lot will depend on Bitcoin’s performance during the next bull market, but BNB should have an excellent chance of setting a new all-time high.
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