Binance Coin: Analysis of BNB indexes to predict the next 8 years
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Disclaimer: The datasets shared in the following article are compiled from a group of online resources and do not reflect FoxCryptoNews' own research on the subject.
The price of Binance Coin (BNB) has increased since hitting a yearly low in June. Demand for altcoins has picked up after the broader market began to recover.
However, the BNB price has been in a downtrend since hitting an all-time high of $692 in May 2021.
The result of this drop was the June 2022 yearly low of $183. However, it is important to note that on the daily chart the RSI has yet to rise above 51.
If the current trend continues, it will reach the nearest long-term resistance at $428.
At the end of January 2021, Binance Coin joined the crypto market boom, growing from $40 to $330 in just one month. BNB price fell in March, trading in the $249-299 region for a while, but started to rise rapidly again in April, reaching a new all-time high of $690 on the 10th of May.
Consider this: In January 2021, the price of Binance Coin (BNB) was $39. However, the price of BNB has also taken a significant tilt in 2021, rising to $689 on the price chart. In fact, this is its peak price in 2021.
However, it is worth noting that shortly after, in the final months of 2021, the broader market fell across the board. Needless to say, the same thing has had a domino effect on the BNB price chart, with the exchange token hitting new lows.
In the past, Binance Coin (BNB) has been sophisticated and has gradually risen to rank among the most valuable cryptocurrencies by market capitalization. On top of that, the growth of Binance, the largest cryptocurrency exchange, has caused the value of BNB to increase significantly in recent years.
In recent months, the bear market has caused Binance Coin (BNB) to experience more severe losses. BNB surpassed the all-time high of $689 during the bull market in May 2021. However, the bear market soon started in November and the price fell.
When consumers use BNB on the platform, Binance will refund them a large portion of the transaction fees. BNB has become important as a platform component in recent years. The demand for Binance Coin is increasing as Binance expands and acquires more users, thus increasing the price and forecast of the coin.
Binance ensures that the supply of BNB is regularly reduced as demand increases. Every three months, a specific part of BNB is destroyed, causing the Binance Coin to deflate and improve the outlook for BNB going forward.
BNB also acts as a payment method and opens up more opportunities on the Binance platform, including savings, DeFi staking, and liquidity mining through the BNB vault.
It was originally used as an ERC-20 token on the Ethereum (ETH) network before moving to the Binance network and changing its name to BEP-20.
As the Ethereum merger took place, Binance was able to effectively manage the transition for its users.
Binance Coin was originally created in 2017 as a utility token to reduce transaction fees. Today, however, its use cases have evolved across various crypto exchanges. BNB can be used to pay transaction fees on multiple Binance platforms, such as Binance.com, Binance DEX, and Binance Chain, in addition to crypto.com and HTC. Hotel booking sites (e.g. TravelbyBit), SAAS platforms (e.g. Canva), DeFi apps (Moeda) and a host of others accept BNB as a form of payment.
BNB price has fallen due to the strong downtrend of the crypto market. It can also be argued that the SEC's problems with Binance have adversely affected the price of altcoins. However, expectations are still high.
Finder.com surveyed 54 people recently and the board believes the coin has promising long-term potential. The price of the cryptocurrency is expected to hit $781 by 2023. And although BNB may not get much attention right now, it often ranks among the best-performing coins in terms of ROI. It is also the fifth-largest cryptocurrency in the world.
At the end of January 2021, Binance Coin joined the crypto market boom, growing from $40 to $330 in just one month. BNB price fell in March, trading for a while in the $250-$300 region, but in April it started to rise rapidly again, reaching an all-time high of $690.93 on May 10.
The price of Binance Coin fell when the entire crypto market crashed at the end of May 2021. At around $200 it recovered and rallied to around $430, but this recovery only lasted in a short time. BNB fell to around $250 at the end of June and then fell again in mid-July. However, the market started showing signs of recovery later that month and Binance Coin was no exception. The price of BNB once again surged, surpassing $350 in the first half of August.
However, like most cryptocurrencies on the market, 2022 has not been a good year for exchange tokens, with BNB dropping in the rankings.
All things considered, buying BNB should be a wise long-term decision, right? Most analysts have positive predictions for BNB. Furthermore, most of the long-term BNB price predictions are bullish.
BNB in history
BNB is a cryptocurrency originating from the world's largest cryptocurrency exchange. It is also very important to the Binance Smart Chain ecosystem. In fact, the latter is one of Ethereum's competitors and offers significantly higher scalability and lower transaction costs.
The continued increase in the number of traders on Binance also has a positive impact on the price of BNB. The cost of this altcoin has increased from $527 in October 2021 to $556 in early January 2022. It is anticipated to continue to expand as trading activity on the exchange increases. as Binance establishes itself as a leader. of the market in the cryptocurrency trading industry.
Its value hit a high, partly due to the volume of BNB being used for decentralized applications (DApps), DeFi, and smart contracts following the launch of Binance Smart Chain. With 44 exciting projects, BSC is the second-largest DeFi platform right now. Over 620 thousand % has been added to the value of Binance Coin from its introduction in 2017 to its peak in 2021.
The fact that the exchange has maintained a fiery schedule since the coin was introduced is just another reason to trust BNB. On April 15, 2021, Binance burned over 1 million BNB, equivalent to $595 million tokens. This is Binance's 15th quarterly BNB burn, and in terms of cash, it's the largest.
In this article, we will briefly review current crypto activity with a focus on market capitalization and volume. In a nutshell, the predictions of the most famous analysts and platforms will be combined with the Fear & Greed index analysis to determine the mood of the market.
Binance coin price analysis
At the time of writing, BNB is trading at around $301. Its total market capitalization is $44.9 billion and it has grown by a significant amount.
And as the numbers slowly increased, investors and pundits became bullish on the token. Digital Capital Management CEO Ben Ritchie is very positive about BNB, predicting that by the end of the year the cryptocurrency will be worth $299. Ritchie also acknowledged that the viability of the Binance exchange will determine the fate of BNB. He went on to say that the asset is likely to deflate, he added,
“BNB price also follows supply and demand. BNB introduced a burn mechanism for every transaction fee and burned it quarterly, making it a deflationary asset. As the BNB chain ecosystem continues to grow, the price could reach $3,000 by 2030."
At the time of writing, the Binance Coin price is below the 200-day simple moving average (SMA). As of January 20, 2022, the 200-day SMA has indicated SELL for the previous 212 days. Since July 16, 2022, when the Binance Coin price fell below the 50-day SMA, this indicator has been showing a SELL signal for the past 55 days.
On February 3, 2022, 197 days ago, the Bitcoin market saw its most recent Death Cross. The golden cross has not occurred for 353 days as of August 31, 2021. Technical indicators predict that the 200-day SMA of Binance Coin will drop next month and reach $327.20 on September 19, 2022. By September 19, 2022, the coin's 50-day Binance SMA SMA is predicted to reach a value of $327.19.
At the time this article was written, TradingView had the opposite opinion, with the platform displaying a "Buy" signal for BNB.
Now let's see what popular platforms and analysts have to say about BNB's position in 2025 and 2030.
BNB prediction for short term 2025
For its part, Changelly is optimistic about the fate of Binance Coin. He predicts that the lowest price of BNB in 2025 will be $1,123, while its peak price will be $1,271.
Technologist and futurist Joseph Raczynski also has an optimistic outlook. He believes that Binance is the world's leading exchange. He say,
“Even though BNB is not decentralized, it can still be used for fast and cheap transactions. Though that has a price to pay. Binance can change token parameters without consensus and they are more likely just a point of failure. "
Cryptocurrency exchange CoinDCX predicts that if the end of last year was bullish, the beginning of 2025 could also be positive. As a result, the price could initially recover the position above $2,000 and maintain the strong upward momentum. Therefore, one can try to reach $2500 by the end of 2025.
So with all these positive predictions, is there any reason not to incentivize BNB? Remember that 2025 is still more than three years from now and Binance has a lot to do with the SEC. The SEC went after Binance, accusing it of issuing BNB as an unregistered security.
However, despite this, the market is still quite optimistic. MetaTope co-founder and VP Walker Holmes does not believe that the SEC will significantly harm the future of BNB he said,
“We have seen this happen with XRP, ETH and others. CZ can make a very convincing case. I think this is a question of possible monetary sanctions. However, at the time of writing, I do not believe that Binance is at significant risk of delisting.”
BNB prediction for long term 2030
Balthazar CEO John Stefanidis expressed great optimism about BNB in a study. In his opinion, a BNB value of $3,000 by 2030 is workable. Due to its advanced technology and compliance with international standards, BNB is well-positioned for long-term success. He also emphasized that the great UX, strong venture team and a great brand of Binance are the factors that make BNB successful.
While BNB is more affordable for many investors, Desmond Marshall, director of Rouge Ventures and Rouge International, believes that Binance Coin could outperform Ethereum. According to him, the implementation of the limits will have the biggest impact on the performance of cryptocurrencies. Furthermore, the neighborhood's confidence in BNB is an important factor in determining future growth.
Now, all these predictions are positive, but you have to be careful. We are talking about 8 years from now and it is worth noting the current state of the crypto industry. BNB and Bitcoin prices have a close relationship with each other. Fortunately, BNB can be burned on the Binance market, which reduces the number of tokens in circulation and can increase the price of the coin.
The performance of BNB will be significantly affected by technological advancements. To improve the functionality of the blockchain, Binance plans to invest in innovative technologies.
Currently, predictions for BNB coin are not always positive. John Hawkins, a senior lecturer at the University of Canberra, predicts that the BNB price is primarily subject to Bitcoin price movements and has no real-world use. end of 2022.
It is important to note that the cryptocurrency market is extremely unpredictable, making it difficult to make long-term forecasts. However, it is worth noting that the F&G index is in the fear category, at the time of publication. Ergo, better times may not be ahead.
Oct 30, 2022