Binance is the most popular exchange in the world. 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 what factors need to be taken into account when making the forecast?
The Binance Coin: Basics
The Chinese Exchange Binance (website) introduced its native token Binance Coin ( BNB ) on 08 July 2017. The concept of a token exclusively for a trading exchange is not new. Most of these platforms work with their own token. Initially, BNB was developed as an ERC-20 token. In April 2019, Binance switched to its own block chain, and began the BNB swap. The BNB token is now only available on the Binance chain.
One of the most important functions of the Binance Coin is:
- Transaction fees: First and foremost, BNB is used as a means of payment for fees on the exchange. The advantage is that the fee is not deducted from the crypto currencies traded. Binance also offers 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 also permits the use of its crypto currency outside its own trading platform. BNB can be used as a means of payment via the Monaco Blockchain or Uplive. Monaco issues Visa cards, for example, which allow customers to pay for crypto currencies 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 a long-term success of the crypto currency:
- Strong trading volume: Binance is number 1 among the crypto currency exchanges 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 transaction flow of the native crypto currency moving and ensures good price stability.
- Use outside the exchange: As already mentioned, the Binance Coin can also be used outside the trading exchange. BNB is even offered for sale on other exchanges. This considerably expands the customer base and ensures growth.
- Coin burning: Burning coins is a popular way of preventing inflation and increasing the value of a currency. This practice is also used by other crypto currencies 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, while keeping the demand for the crypto currency at the same level, or ideally even increasing 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 crypto currency used for fees. This will further expand its potential.
- Binance Launchpad: The Binance Launchpad allows startups and crypto companies to carry out Initial Exchange Offerings (IEO). Here too, BNB is once again the native and preferred currency.
- The broad range of applications in conjunction with coin burning will have a positive effect on the Binance Coin forecast.
Long-term Binance Coin price prediction: 2019, 2020 – 2024
The Binance Coin price prediction can be made on the basis of the above factors. The degree to which the individual points are weighted and influence the assessment varies greatly. For this reason, the following provides an overview of the forecasts of various forecast websites for the next 5 years for BNB:
- Coinswitch: The price is expected to rise to US$ 49.85 in 2020. This assessment is based on the forthcoming partnerships with two projects in Brazil and the planned partnership with Moeda. As a result, Binance could rise to 5th place among crypto currencies in terms of market capitalization. This would also have a positive impact 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 analyses for its Binance Coin forecast. They come to the conclusion that the price for BNB will rise by around 23% within a year. The price is expected to rise continuously in the coming years. In 5 years, i.e. 2024, 1 BNB would cost about US$ 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 BNB will trade at an average of US$25 until the end of 2019. The price could continue to rise in the coming years, with the result that the Binance Coin forecast will be around US$ 52 by the end of 2023.