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Binance Coin BNB is the first of a class of broker/exchange-specific cryptocurrencies which emerged in 2017, and which continues to offer niche benefits to investors today. Meant to give traders an incentive to use the Binance Exchange, BNB allows holders get discounts on trading fees. It’s also tradable against other cryptocurrencies and altcoins, so BNB has value outside of the Binance ecosystem. It can be traded at any cryptocurrency exchange that supports it, just like Bitcoin BTC all altcoins.
The first wave of Binance Coin investors benefited greatly from their early adoption of BNB. Following its introduction to the market, BNB prices beat most expectations, and BNB continues to sit atop the markets today, even after months of crypto bear market action.
Clearly, Binance Coin has found an audience. The only question remains is whether or not Binance Coin BNB will keep its edge, hold its value, and remain a coin to follow for years to come. To find out what we think, read the Binance Coin predictions to come. We’ll talk about Binance Coin value for the rest of 2019, and beyond.
Why Binance Coin Prices Rise and Fall
Binance Coin is a digital asset. Though it doesn’t have a physical form, Binance Coin worth is derived from the same market forces which determine the value of tangible assets like gold. Like gold, there is only a certain amount of Binance Coin available in the market, 141 million BNB to be exact. The price of each BNB coin is determined by the laws of supply and demand. The more desirable BNB is, the more people will buy it. The more people buy BNB, the less of it is available on the market. The less BNB is available on the market, the rarer it becomes and the higher price people are willing to pay for BNB.
It’d be simpler to say that people are willing to pay for BNB only what they think it’s worth. But how does the perception of a good Binance Coin price change over time? Binance Coin today is trading at almost $10. Tomorrow, Binance might release a news briefing explaining that they’re opening up a major new operation in New York City, and that they expect 3 million more users to join their service by the end of 2019 (this is entirely made up).
In a scenario like this one, cryptocurrency investors might decide that Binance Coin will be worth more than it is worth today, after all of this news becomes a reality. They’ll buy up BNB at $10, perhaps hoping that it’ll be worth $20 later this year. The introduction of millions of new Binance users would take a lot of BNB out of public circulation, so this is a reasonable expectation.
Of course, there are many real world news items related to Binance exchange. Some of them make people more confident in this large assign brokerage source, while others erode confidence. The price of BNB fluctuates accordingly.
There’s another interesting facet to Binance Coin value, related to Binance periodically “burning” major percentages of the BNB supply. When this happens, many hundreds of thousands of BNB are destroyed, removed from the network forever. This reduces the number of BNB that are available to own, and thus increases the rarity (and therefore, the value) of the BNB investors already own. This is a great perk for BNB holders, and it can be compared to stock buybacks for traditional securities markets.
Binance Coin Historical Prices
Binance Coin has had major price fluctuation, just like any other cryptocurrency. But unlike some altcoins with only the promise of a future use case, BNB has remained useful for traders throughout the cryptocurrency bear market. In fact, BNB is every bit as useful today as it would have been at the height of the bull run market in later December 2017. BNB gives crypto traders 50% on Binance transactions. That’s as true today as it ever was.
Due to this stable use case, Binance Coin BNB hasn’t lost as much value as many of its competitors have. For example, market leaders like Ethereum ETH have lost well more than 90% of their all-time high prices. Much of this is due to the fact that, for the average cryptocurrency user, Ethereum isn’t much use except as a makeshift cryptocurrency. However, just about every cryptocurrency investor can make immediate use of BNB coin for trading.
This has led Binance Coin to (at least in late February 2019) the coveted 10th place in the cryptocurrency markets. With a market cap of almost $1.4 billion, this is clearly an important digital asset on the global stage. To put this in perspective, American food delivery startup Blue Apron was worth $2 billion late last year. The two companies are basically apples and oranges in all other ways, but this can help us understand the scope of Binance’s coin valuation.
Binance Coin BNB was initially sold for about $0.10. Prices quickly shot up when it became possible to use BNB on Binance. By year’s end 2017, BNB had very nearly hit $10 on more than one occasion. But 2018 was to be an even bigger year for BNB. Prices topped out at almost $25 per BNB in mid-January 2018, before sliding off with the rest of the markets.
By February, the crypto market bubble had popped, and BNB had fallen to almost $5 per coin. But unlike the rest of the market, Binance cleverly managed to save BNB values, providing great incentives for market traders to consolidate business within Binance (and not other exchanges). BNB prices summarily recovered, and Binance Coin prices rose above $10 for most of the rest of 2018.
Binance Coin prices few beneath the $5 mark in mid-December 2018, for the first time since the coin’s introduction. During 2019, BNB prices have slowly improved, flirting with $10 as we write today in late February 2019.
Binance Coin Future Price Predictions
So what does the future hold for Binance Coin? Well, insofar as Binance is able to keep its place as the top cryptocurrency exchange, Binance Coin’s combination of benefits will make it an important trading cryptocurrency for the foreseeable future. However, rumors of Binance market manipulations and shady dealings (such as the TRON-partnership BTT pump and dump) may shoot Binance exchange in the foot.
Many believe that centralized exchanges like Binance will not last much longer, but Binance is clearly anticipating this possibility by bringing its own decentralized exchange to market. This is a very murky subject, but we’ll try to explain our Binance Coin price prediction in detail anyway.
Binance Coin Prices in 2019
We expect Binance to remain the world’s most popular cryptocurrency exchange for the rest of 2019. As the bulls return, Binance will absorb much of this trading volume, and BNB will become a more desirable asset for traders new and old. There will be continued whispers of Binance exchange misdeeds throughout the year, but this is unlikely to come to a head until next year at least. In this time, no decentralized competitor will be able to significantly cut into Binance’s business. By years’ end 2019, Binance Coin will be worth…
$25 per BNB.
Binance Coin Prices in 2020
By 2020, decentralized exchanges will start to be more common. These exchanges won’t have the same attack vulnerabilities that we’ve seen in the hacking and crypto theft of many other centralized exchanges. Thankfully (and to their credit), Binance hasn’t been hit by one of these attacks yet, but there’s not way to say that this will not one day occur.
Whatever the case, we expect some of Binance’s market manipulations to catch up to it in 2020. Perhaps there will be some civil action from a government regulation. Perhaps traders will cry foul over scheming action related to TRON and BTT. Perhaps people will simply be drawn to a more attractive decentralized option like NASH built on the NEO blockchain. In any case, we don’t think BNB will go away in 2020. By year’s end 2020, Binance Coin will trade for…
$35 per BNB.
Binance Coin Prices in 2021 and Beyond
By 2021, the cryptocurrency trading landscape will scarcely resemble that of early 2019. By now, Binance will not be the clear leader in the cryptocurrency exchange space. We expect some of the shady dealings that took place during the bear market of 2018 to start to mar Binance’s brand, and for Binance leaders like CZ to perhaps be taking a backseat to avoid the notice of the powers that be.
in any case, market competition will have brought innovative new cryptocurrency trading options to the space, and the once fresh and new Binance will be something of a dinosaur. Starting to bleed customers, and with no way to reinvent the wheel, Binance will slip from the top spot in the markets. By the end of 2021 and going into 2022, Binance Coin will trade for…
$8-$10 per BNB.
Binance Coin BNB is a really good idea, and those who use it for trading know it’s value. However, it’s part of a centralized exchange, which is a vestige of a time of major immaturity in cryptocurrency trading markets. Binance exchange won’t last forever, and when it goes, so will go Binance Coin BNB. It was good while it lasted, though it’s certainly not done yet.
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