Binance Coin (BNB) is a native token of the Binance exchange. It is used to pay commission fees on the exchange and trade in more than 50 cryptocurrency pairs. Recently, Binance coin showed impressive performance on the crypto market and outstood the Tether stablecoin from its third place.
What can potentially happen to Binance Coin price in the next five years? Let’s uncover some facts and prospects of Binance coin cryptocurrency.
What Is Binance Coin (BNB)?
Binance coin was released in July 2017 during the ICO. The main goal was to attract investments for the development of the Binance exchange. Initially, BNB token standard was ERC-20, operated on the Ethereum blockchain, and was not available for mining. On April 18, 2019, Binance Chain was launched, and all BNB tokens were moved to its blockchain in five days.
Under the ICO terms, 50% of Binance Coin tokens were distributed among investors, the team received 40% and 10% – venture investors. The team succeeded in collecting 15 million US dollars; the exchange was supported mainly by investors from China. This sum is not very impressive, since some projects raised a more considerable amount without a working business and products. Half of the money went to advertising and brand promotion, 35% – for platform development, modernization, and security, and the remaining 15% was directed to the reserve fund.
The BNB coin is subject to inflation, but the creators took this point into account even at the creation of the white paper stage. According to one of the white paper points, every three months, the Binance exchange sets aside 20% of its income for the subsequent redemption of coins and their burning. As a result, only 100 million BNB will remain, i.e., half of the initially issued volume.
On the Binance platform, the BNB Coin cryptocurrency performs three functions:
Acts as a trading asset
Used to reduce fees
Suitable for paying for goods on platforms that accept Binance Coin
One can use Binance Coin to pay for any fees on the platform, including but not limited to: exchange fees, listing fees, and any other fees. When users apply BNB to pay for fees, they receive a significant discount, depending on the time spent using BNB to cover the fees.
For instance, the Binance users can have a 50% discount on trading fees during the first year since they started trading on the exchange. The trend leads to a 25% discount in the following year, 12.5% in the third year, 6.75% in the fourth year. The discount ends in the fifth year.
The token was established with a total supply of 200 million and is not mineable. As we have already mentioned, all the issued coins were either distributed or burned after the launch of the asset.
Binance has launched its own startup platform, Binance Launchpad. It publishes various interesting projects looking for investors, and Binance leads the IEO – the initial sale of tokens by the exchange. You can participate in IEO if you have BNB tokens, so each such project provokes a demand for Binance Coin.
BNB Price Prediction 2021
Recently, we saw a significant increase in BNB price. What has become a trigger? First of all, at the end of 2020, Bitmex announced the BNB futures listing. Moreover, in February 2021, the Binance Coin price updated its all-time highest value and reached $342.
Meanwhile, BNB shifted Tether from third place in the CoinMarketCap list. However, the main reason for the rise in the BNB rate is the news of the launch of its own payment service Binance Pay. Binance Pay is the equivalent of PayPal for the cryptocurrency world.
It’s obvious from many sources that the BNB price is going to rise. For instance, Digital Coin Price claims that by the end of this year, BNB might reach $348, which is 44% growth. Gov.capital predicts the $304 price. Wallet Investor seems not to be so optimistic. The source claims that BNB can increase up to $230-$250.
There is the only bearish trend by Trading Beasts. According to it, the price of BNB will go down to $161. This opinion can be nothing but the statement of the fact of the inevitable correction of the asset.
BNB Price Prediction 2022
Wallet Investor claims that Binance Coin will go up throughout the year and end it on the $280-$300 mark. Digital Coin Price has a more bullish forecast and predicts $440. Trading Beasts are bearish once again – it predicts only $200 next year.
Binance Coin (BNB) 5 Years Price Prediction
By the end of 2025, Binance Coin might reach a $380-$400 price. In 2025, BNB can finally reach $500. According to Digital Coin Price, the asset price can get $682.
Frequently Asked Questions
In this section, we have collected the most popular questions regarding Binance Coin.
Will BNB go up?
According to the presented price predictions and recent price rise, Binance coin cryptocurrency can definitely go up a lot more in the future.
Is BNB worth buying?
Definitely. Not only as an internal currency of Binance exchange but as an investment option too, since the price of the coin is rising.
Where do I buy Binance Coin?
The most obvious answer is the Binance exchange. However, Changelly is here to offer you a smooth and instant BNB purchase with a credit card or Apple Pay. Check out our widget below to find out more about rates and possible fiat options.