Binance is the most popular exchange platform, expanding its utility and developing its own crypto ecosystem with the surge of BNB in 2017. The digital currency is a top 10 in the digital market, and its continuously evolving landscape is a clear sign that the currency is here to stay. Despite the competition and challenges, BNB promises a great future, taking the crypto world by storm with the implementation of new technologies that make the blockchain programmable, covering a wider audience’s needs and inspiring businesses from all industries to hop on the digital trends. When thinking about programmability, Ethereum is the first currency that comes to mind, but comparing the 97% lower transaction fees with the $13 dollars taken from ETH, BNB is the winner. The high demand for the coin and positive reputation among crypto-enthusiasts brings a high demand in the BNB, so the prices promise significant growth. Considering the current market situation in the crypto world, could BNB reach a new high by 2025?
About Binance coin
The exchange platform Binance was launched in 2017, and two weeks before, it introduced its coin, BNB, to the public eye for early investors who wanted to diversify their portfolios. Binance coin was mainly created to be used as a payment method for fees, with a discount as an incentive and trading on the exchange platform, and it has quickly become the most-wanted thanks to its ability to facilitate more than 1.4 million transactions per second. The BNB chain consists of two separate blockchains: the BNB beacon chain, which handles governance, and the BNB smart chain, which handles smart contracts and their execution. The chain uses a combination of the proof of work (PoW) and proof of stake (PoS) mechanisms to validate transactions, which determines the speed and low fees.
BNB is a growing ecosystem that enables the creation of decentralized apps (dApps), including DeFi and decentralized finance, to provide users with traditional financial services without involving third parties, with lower fees and faster activity. Also, the digital currency is not as volatile as other crypto like Bitcoin, and what makes its price fluctuations more predictable is the burning system, which was implemented to reduce the total supply to 100,000,000, which happens every four months, offering greater transparency.
BNB Price history in a nutshell
Binance coin has experienced multiple fluctuations since its launch in 2018, but despite the ups and downs, the coin fosters a positive sentiment among traders that forecasts a great future for BNB, as the BNB prediction suggests. BNB was sold for 15 cents in 2017, in the pre-sale phase preceding the official launch, and Binance offered 100 million coins, gaining funds worth over $15 million. Lately, the next month after the introduction in the market, the price dropped to an all-time low of $0.9. After that, BNB surprised the market with significant growth, from $40 to a price of $690 during the pandemic. After its peak, BNB dropped to $205, but after the SEC approval of ETFs earlier this year, it got back on track with a price of $580, and it has continued to fluctuate around this number since then.
The bull case
The bull case represents the optimistic outlook about the price of a cryptocurrency, like a best-case scenario regarding the potential of growth. BNB is one of the most demanded coins, and investors worldwide analyze the various aspects that could make the currency a competitor in the next bull run, which is forecasted for the end of this summer. The bull case could be driven by multiple factors, like the widespread requests of investors holding BNB coins for the first time and wanting to exit other altcoins, and, since Binance is trying to achieve a greater market share, new developments could lead the digital coin to a successful path. The demand that could impact the price of BNB is also due to the fact that chain users have to hold the digital coins in their wallet for transaction fees, reducing the number of coins in circulation on the market and, hence, limiting the supply. Another key factor that may boost BNB prices is the integration of new services, allowing investors to purchase real-world assets that contribute to the creation of new use cases and rising interest in the blockchain.
The bear case
The possible downside of BNB determines the bear case. As inflation remains stubborn and the macroeconomy remains a driver of the crypto market, investors might have to liquidate their digital assets to traditional finance services and be subject to inflationary issues of the real world. Still, the most relevant risk of BNB is the survival of the platform Binance. The direct relationship between the BNB coin and the Binance exchange leaves the coin vulnerable to any possible drop in the platform. Negative media attention to the Exchange also brings a negative perspective on the currency, so it may be considered a risky investment if anything bad happens this year. However, investors always point to the resilience of Binance, considering the case in 2023 where the negativism regarding the platform brought the coin to a significant drop, but shortly after, the exchange was back on track with an innovative mindset and well-put-together ecosystem.
2025, the next big step for BNB?
Investors consider BNB a great competitor for the next bull run, and it could potentially reach over $750 by the end of this summer. Starting from that boom, 2025 predictions do not disappoint either, as the continuous development of the ecosystem could push the currency to its all-time high, getting close to $1000 in 2025.
The bottom line
Forecasting the future of the Binance coin is not an easy game, but considering the past growth of the coin that took the market by storm, 2025 looks promising as well. With a proper trading strategy and a deep knowledge of the underlying technologies, BNB is considered a great opportunity that should not be missed, so this summer, it’s time to give the currency a chance and integrate it into your portfolio.