Binance is the world’s most popular exchange. What does this mean for the Binance Coin price prediction for the next 5 years? How will the price develop in the long term and which factors must be taken into account when making a forecast?
The Binance Coin: Basics
The Chinese exchange Binance (website) presented its native token Binance Coin (BNB) on July 8, 2017. The concept of a token exclusively for a trading exchange is not new. Most of these platforms work with their own token. Originally, BNB was developed as an ERC-20 token. In April 2019, Binance switched to its own blockchain and started the BNB swap. The BNB token is now only available in the Binance chain.
One of the most important functions of the Binance Coin is:
- Transaction fees: The BNB is primarily used as a means of payment for fees on the stock exchange. The advantage is that the fee is not deducted from the traded cryptocurrencies. Binance is also offering a gradual discount on transaction fees until 2022. This should make the use of the coin more lucrative.
- Means of payment outside the exchange: Binance allows the use of its crypto currency outside of its own trading platform. BNB can be used as a means of payment via the Monaco Blockchain or Uplive. Monaco, for example, issues Visa cards that customers can use to pay for cryptocurrencies by credit card.
Binance Coin Price Prediction: The Most Important Factors
When it comes to the Binance Coin forecast, there are a few points that speak for the long-term success of the cryptocurrency:
- Strong trading volume: Binance is the number 1 cryptocurrency exchange in terms of trading volume. The exchange has 493 active trading pairs. The discount on trading fees encourages customers to use the Binance Coin. This keeps the flow of transactions in the native cryptocurrency in motion and ensures good price stability.
- Use outside the exchange: As already mentioned, the Binance Coin can also be used outside the trade exchange. BNB is even offered for sale on other exchanges. This significantly expands the customer base and ensures growth.
- Coin Burning: Coin burning is a popular way to prevent inflation and increase the value of a currency. This practice is also used by other cryptocurrencies such as Bitcoin or Litecoin. Binance originally generated around 200 million BNBs and plans to reduce the total supply by 50% to 100 million in the long term. The idea is to gradually reduce the supply and at the same time keep the demand for the cryptocurrency the same or, ideally, even increase it. At the same time, the value of the token would increase.
- Decentralized exchange: Binance has developed a decentralized exchange (DEX). The Binance Coin will also be the main cryptocurrency for fees. This will further expand its potential.
- Binance Launchpad: The Binance Launchpad enables startups and crypto companies to carry out Initial Exchange Offerings (IEO). Here, too, BNB is again the domestic and preferred currency.
- The wide range of applications in connection with coin burning will have a positive effect on the Binance coin prognosis.
Long-term Binance Coin price prediction: 2019, 2020 – 2024
The price prediction for Binance Coin can be made based on the above factors. The weighting of the individual points and their influence on the assessment are very different. Below is an overview of the forecasts of various forecast websites for the next 5 years for the NBB:
- Coinswitch: The price is set to rise to $ 49.85 in 2020. This assessment is based on the upcoming partnerships with two projects in Brazil and the planned partnership with Moeda. This could move Binance to 5th place among cryptocurrencies in terms of market capitalization. This would also have a positive effect on the value of the coin. In 5 years the Binance Coin could finally rise to US $ 89.7.
- WalletInvestor: This platform uses historical data and technical analysis for its Binance Coin forecast. They come to the conclusion that the price for BNB will rise by around 23% within one year. The price is expected to rise continuously in the coming years. In 5 years, so in 2024, 1 BNB would cost around $ 64.46.
- U.today: For the short-term Binance Coin forecast, the platform is based on the current situation and the factors mentioned above. They conclude that the NBB will trade at an average of $ 25 by the end of 2019. The price could continue to rise in the coming years, so the Binance Coin forecast will be around $ 52 by the end of 2023.