What to expect from Binance Coin in the next decade
By Richard Laycock
It’s been a wild year for investments with struggling traditional and digital assets. However, much of the coverage focuses on the lackluster performance of the crypto space, with pundits tossing around terms such as “crypto crash”.
Although the market is definitely experiencing a downturn, the world is not ending. At least not according to the panel of experts who gave predictions as part of the Finder Cryptocurrency Price Predictions report.
Take Binance Coin (BNB) – the token you use to facilitate trading on Binance as well as the native Binance Smart Chain asset – for example. The panel expects BNB to close 2022 with $274. Although this is far from its all-time high (ATH) of $686 in March 2021, the panel expects great things for the coin in the future.
By 2025, the panel indicates that BNB could see new ATHs, and they predict that it will close 2025 with $781. Looking towards the end of the decade, they see the price of BNB climbing to $1,814 by the end of 2030.
BNB vs. S&P: Tokens $100 less
So what does this mean for people looking to buy BNB?
If BNB were to reach $1,814 in 2030, that would represent a 615% increase from its current value of $254 at the time of writing. This means that if you throw $100 on BNB at its current price, you would see that $100 is worth around $715.
That’s a pretty decent return, especially when compared to traditional investments.
If you had invested in an S&P 500 ETF over the past eight years, your money would have increased by about 94%. Nothing to sneeze at, but if we look at this in the context of that same $100 investment, you’re looking at taking home $194.
From its ashes, BNB is reborn
One of the main points of difference between BNB and other coins is that it is a deflationary asset. When BNB started, 200 million BNB were in circulation. The quarterly BNB burning mechanism – where Binance burns a percentage of Binance Coin – reduces the amount of BNB in circulation. By the end of 2022, it is expected that there will be 100 million BNB.
During his interview with Finder, Managing Director of Digital Capital Management, Ben Ritchie, said Binance Coin has a bright future, in part because BNB is a deflationary asset: “The price of BNB also follows demand. and the offer. BNB introduced a burn mechanism in each transaction fee and conducted quarterly burns, making it a deflationary asset. As the BNB chain ecosystem continues to grow, the price could reach $3,000 in 2030.”
At the end of the line
Is BNB guaranteed to see its value go up? No. However, BNB has a good chance of sticking around, if only for its ties to Binance and the fact that it is a deflationary asset like Bitcoin (BTC).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.