Binance Coin Price Prediction
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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, unlike the other listed networks that have few DApps or none.
What is Binance Coin?Binance Coin (BNB) is the native cryptocurrency of the Binance Smart Chain network. BSC is a close copy of Ethereum with a different consensus mechanism. A small group of validators controls BSC, unlike Ethereum which allows anyone with basic hardware to help validate transactions and secure the network. Only the people with the most BNB can be a part of this group. This is not ideal for those who cherish Ethereum’s decentralization, but it has undeniable benefits. Compared to Ethereum, transaction throughput is dramatically higher and fees are much lower on BSC. Anyone who has used the Ethereum network recently should know that network congestion and high fees have been a huge problem.
BSC quickly became an extremely popular alternative because of its near-zero fees and similar platforms to those on Ethereum. Investors can still borrow, lend and stake their cryptocurrencies on decentralized finance (DeFi) platforms on BSC without having to pay massive fees. Unfortunately for BSC, Ethereum has a major set of upgrades in the works called Ethereum 2.0 that is designed to fix these issues. It is planned to finish at the beginning of 2022 and will lower transaction costs and network congestion among other updates. If this completely solves the problems on Ethereum, BSC and its rivals may entirely lose their usefulness. However, it is extremely unlikely that all its problems will be solved, and BSC could survive it.
Binance Coin Market PositionBinance Coin is one of the largest cryptocurrencies in terms of market capitalization with a price of about $420. It was the 3rd-largest cryptocurrency for a significant portion of 2021 until it was eventually passed by Cardano (ADA).
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 has a massive market capitalization of $70 billion, meaning that it will be more difficult for its price to rise dramatically than smaller tokens like Shiba Inu.
BSC has easily one of the largest 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 Bull Case for Binance CoinMost of the top cryptocurrency price analysts are bullish on Binance Coin and predict it will rise dramatically throughout 2021 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 $871 by September of next year. It also provides a 5-year prediction, saying it will reach $2,358. 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 Bear Case for Binance CoinNot many analysts offer bearish predictions for BNB, but some 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 bull and bear case. 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. Technical analysis is not perfect, but it’s still one of the best tools for cryptocurrency investors to predict the market.
Where to buy Binance CoinDespite Binance Coin’s massive market capitalization, it is not available on a large range of centralized exchanges. To purchase BNB you need to sign up for an account with one of the few trading platforms that support it. Some of the best include Binance, Binance.us (for U.S. investors) and eToro.
You will need to verify your identity before you can start trading. This requires you to provide your address, Social Security number and a picture of your driver’s license or other valid ID. As soon as you are verified you can fund your account with fiat currency or another crypto and buy BNB.
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Best ForBinance is the largest cryptocurrency exchange in the world by trading volume. In fact, it tops the ranks of cryptocurrency exchanges maintained by CoinMarketCap, which are ranked based on 24-hour trading volumes, exchange score and average liquidity. Binance triumphs over exchanges like Huobi Global and Coinbase, which follow closely in 2nd and 3rd places, respectively.
Previously based in Malta, the Binance Group is now based in the Cayman Islands. Binance has several locations and entities registered across the globe. In the United States, it’s known as Binance.US. The exchange in the U.S. uses the same cutting-edge technology and trading services as its global counterparts with the difference being U.S. regulatory compliance. It is operated by San Francisco-based BAM Trading Services.
Binance.US ranks 9th on CoinMarketCap’s list of the top 10 exchanges based on metrics like 24-hour trading volume, exchange score and average liquidity. Binance could be a good platform for you to invest in cryptocurrencies if you are a U.S.-based trader who trades frequently, doesn’t intend to pay high trading fees and needs access to a large number of cryptocurrencies.
Best ForReaching $1,000 should seem like a long way away for BNB investors. It would require more than a 135% increase in price.
However, in the cryptocurrency market, a 135% appreciation over a year or 2 is relatively unremarkable. 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 2022 at the earliest.
Where to Store Binance Coin SafelyMany investors leave their cryptocurrencies on the exchange they bought them on. This is not the best place to store them, however. Massive exchange hacks have lost users many millions of dollars of cryptos over the years. Exchanges like Binance, Binance.us and eToro have fantastic security features and the chance of losing funds to a hack is quite low. Nevertheless, if you use a personal wallet, either hardware or software, your cryptos will likely be safer.
Best Hardware Wallet: LedgerLedger is the leading hardware wallet brand in the world. It offers 2 fantastic devices with incredible security features: the Ledger Nano S and Nano X. The Nano S is the simpler wallet, perfect for beginners looking for ultimate security for their cryptos. The Nano X adds a larger screen and even Bluetooth functionality to smooth over much of the clunkiness that is inevitable with hardware wallets.
Both models have the same certified secure chip that generates, encrypts and stores the private key for your wallet. The private key is the only way to access the funds in your wallet, and it never leaves the device. Ledger wallets support more than 1,000 cryptocurrencies, including BNB. Before you can store BNB and other tokens on BSC you will need to add a BSC account to your ledger using Ledger’s simple guide.
Best Software Wallet: ZenGoSoftware wallets are less secure than hardware wallets because their information is stored online. However, the ease-of-use tradeoff is often massive. Many crypto investors have at least 1 of each to get the best of both worlds. They keep the majority of their portfolios on a hardware wallet and use a software wallet for day-to-day transactions. One of the best software wallets on the market is ZenGo. It exploded onto the market this year with innovative new security features and support for a vast number of cryptocurrencies. You can also purchase cryptocurrencies with a credit card or with a linked bank account. It’s available as an app on both iOS and Android devices, and it’s extremely easy to set up your wallet.
Bonus:A few different factors likely will impact BNB’s success in the future. The most important include whether developers stay to build new and exciting applications on the network and whether Ethereum 2.0 doesn’t fix the network’s congestion issues.
Current Crypto PricesThe recent cryptocurrency market rally led by Bitcoin and Ethereum hit a large speed bump recently. Both cryptos are down about 10% at the time of writing and most of the rest of the market suffered similar or worse losses. This is a relatively small drop for the crypto market, but it could mark the beginning of a larger shift in the market. Many investors believe that it is just a small correction and the rally will continue soon, but it’s impossible to tell whether that is correct.
Even accounting for the dip, Cardano has performed incredibly well this year and reached its all-time high above $3 at the beginning of September. Solana has seen even more dramatic price shifts in the same period, rising more than 450% to its all-time high of nearly $200.
Is Binance Coin a Good Investment?Binance Coin could be a fantastic investment if BSC remains a top Ethereum alternative and its rival fails to solve its network issues. Historically, it has performed well when Ethereum suffers severe congestion and incredibly high fees. However, even if Ethereum fails to improve significantly, BSC must still beat out the other alternatives. Unlike the other alternatives, BSC has a large user base already on the network.
Benzinga crafted a specific methodology to rank cryptocurrency exchanges and tools. We prioritized platforms based on offerings, pricing and promotions, customer service, mobile app, user experience and benefits, and security. To see a comprehensive breakdown of our methodology, please visit see our Cryptocurrency Methodology page.
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