Less than four years after launching, Binance has grown to be the largest cryptocurrency exchange by client count, forming a critical part jig in the sphere. Its native currency, BNB, is one of the top-performing assets, rising and cementing its position in the top-10.
For this and many other reasons, we decided to dig deeper and look at the Binance Coin price prediction for 2021. Investors and traders are hungry, looking for the next gem to profit from, and judging from how BNB performed in early 2021, they can’t be wrong.
Cryptocurrency Exchanges Are Indispensable For the Success of Blockchain Projects
Cryptocurrencies won’t be worth anything if there is no marketplace. Think about this: The buying and selling of any commodity, asset, or currency, only thrive when there are buyers and sellers. They combine to create market forces that, in turn, influence the valuation of the tradable asset.
In crypto, the decentralized nature of the underlying but high potent assets—operating mostly outside of regulatory purview can cause friction. For this reason, unlike the stock market–which’s sometimes bogged down by red-tape and the alleged protection of retail investors who are in turn cut away from lucrative opportunities, cryptocurrency exchanges play a critical role.
The lack of regulatory guidance and apprehensive investors and regulators who earlier adopted a wait-and-see approach meant cryptocurrency exchanges had to innovate and create reliable order matching and executing engines. At the same time, they had to be market makers, as well as custodians.
Ordinarily, all these functions are performed by various firms in the traditional setup. Considering how crypto has blossomed over the last few years, cryptocurrency exchanges like Binance are therefore doing a decent job by all standards.
In this article, we are looking at the Binance Coin Price prediction for 2021. Accordingly, we have to start from the very bottom to understand the mechanics of the main project, in this case, Binance, and whether traders ought to be upbeat about the different BNB price forecasts for 2021 made by different players.
To condense and coalesce the thought of influencers, specialist prediction sites, and individual analysts, we must first understand what Binance is, the idea behind its creation, and why the cryptocurrency exchange is unique, attracting investors from all cadres.
So, here we go.
What is Binance?
Binance is synonymous with the cryptocurrency exchange enabling the crypto-to-crypto trading of various digital assets. The exchange launched after a successful ICO in 2017.
What’s different about Binance is the number of cryptocurrencies supported and the reach of the platform. Earlier on, the exchange only enabled crypto-to-crypto trading. However, it has since branched out, allowing the trading of cryptocurrencies using fiat. Binance has a branch in the United States, Turkey, and Uganda.
Besides spot trading, Binance supports derivatives products, including futures, options, and leveraged tokens. The Binance Futures has grown to be one of the largest derivatives trading platforms supporting up-to 125X leverage.
Beyond trading, Binance has a well-developed ecosystem comprising a Launchpad for fundraising, a smart contracting platform (Binance Smart Chain), Binance Chain–where the Binance DEX operates from, and a rival of decentralized finance called CeFi, which allows the exchange’s client to diversify and enjoy the benefits of DeFi in a custodial, secure, and reliable manner.
The Binance Coin (BNB) Coin
By early March 2021, the BNB coin was one of the most valuable, perched at third in the market cap leader-board, displacing USDT, Polkadot, and others.
Above everything, the Binance Coin (BNB) is central to the Binance ecosystem’s operations, acting as a utility. The coin is used for incentivizing traders. Therefore, Binance traders can use BNB to pay for fees and, in return, receive discounts that they won’t access if they had settled in fiat or crypto, for instance. To spark trading and improve the exchange’s liquidity, users who pay using the BNB coin received a 50 percent discount.
Moreover, for users who want to invest in an Initial Exchange Offering (IEO) through Binance’s Launchpad, BNB is required. During the IEO boom of 2018 and 2019, the use BNB propped the coin, thrusting its valuation into the top-10.
Also, interacting with the Ethereum Virtual Machine-compatible Binance Smart Chain (BSC) will require users to pay for on-chain transaction fees in BNB. In return, these fees are channeled to validators tasked with ensuring the network functions as designed. All dApps operate in a scalable but secure environment.
BNB coin is also helpful in making payments. It is supported by the exchange’s ecosystem products like Binance Pay and more. Other products like Pundi XPOS, Crypto.com, and Monetha Merchants also support the coin as a medium of exchange.
The exchange will eventually buyback and burn 50 million BNB tokens from their profits. As per the whitepaper, the idea is to create scarcity and make the BNB coin more valuable.
A Brief History of Binance
The word “Binance” is derived from Binary and Finance. The founder of the cryptocurrency exchange is Changpeng Zhao. He runs it through the Beijie Technology Company headquartered in Hong Kong.
Through the company, Binance raised $15 million through a month-long ICO in July 2017. During the ICO, 50 percent of all coins (100 million) were allocated to public investors. Ten percent went to Angel Investors, while 40 percent were assigned to the founding team.
With the funds, the team built one of the most robust exchanges through a coordinated effort of building, marketing, and prioritizing security. The majority, 50 percent, was allocated to branding efforts, including marketing and education, 15 percent to emergencies, and 35 percent towards upgrading the Binance platform and its vital security system.
Binance Coin Price Prediction for 2021
The Binance coin (BNB) started the year off strongly. Trading at over $280 a token in early March, the coin was up a massive 15X from the same period in 2020. Undoubtedly, the BNB token is the main beneficiary of the 2020 crypto bull run. Many people are curious to know the Binance Coin (BNB) price prediction for 2021 made by various platforms.
This article shall consider the BNB price forecasts for 2021 made by specialist platforms incorporating algorithms based on price action, historical volatility, and the crypto market state to conclude. Additionally, we shall also include the view of expert crypto analysts from YouTube and Twitter.
· WalletInvestor’s BNB Price Prediction
There is no denying that the BNB price has been on a tear in the last few months. Four-digit gains over the previous few months are enough testament for just how BNB has been defying gravity, obliterating resistance levels, and above all, making many BNB holders rich.
WalletInvestor trading bots classify BNB as an “acceptable long-term investment” that can reach $400 by the middle of the year. Although prices may fall, the coin will steady above $200, which is way above $38—last year’s high.
· Long Forecast Binance Coin Price Prediction
Bullish as WalletInvestor is, it can’t compare to want Long Forecast algorithms predicts. A combination of technical analysis and on-chain factors is enough justification for their BNB Price Prediction for 2021 to touch $791 by the close of December. Typical of volatile assets, the BNB coin could slip in September, but the uptrend will be firm. Therefore, from this analysis, it is possible for BNB prices to more than triple from spot rates. If anything, if you are asking yourself whether BNB will reach $1,000, you may not be out of luck after all.
· Digital Coin Price Prediction
While Long Forecast expects a moonshot, Digital Coin Price is modest. Still, that is not to say the BNB price will slip or even dump from spot rates. The platform expects the BNB/USD price to reach $432 by the end of the year. If this guide, there is more room for the BNB price to soar from spot rates, narrowing their gap with Ethereum.
Binance Coin (BNB) Price Prediction for YouTube
It is no different for analysts at YouTube. The optimism, it appears, is across the board. According to Bitcoin for Beginners, the Binance Coin (BNB) will reach $1k at the end of the year. Most of this depends on how the Coinbase Direct Public Listing will be. In his view, a repricing of Coinbase’s valuation could see the BNB fly off the rafters, registering more than 4X from spot rates.
A 4X rally is not enough for KIR Finance. In his view, the BSC’s success and the rise of DeFi in the alternative smart contracting platform could turbo-charge the BNB coin to between 10X and 15X. At this level, his Binance coin price prediction for 2021 is at a whopping $2.7k.
Binance Coin Price Prediction for 2021 from Twitter
Reflecting the confidence of platforms, crypto fans on Twitter are equally ecstatic about the BNB prospects in the medium term.
For instance, one Twitter user going by the handle @Alithecrypto says the BNB price could hit $1,000. Although the BNB/USD price would be volatile but maintain an uptrend, eventually hitting $1,000.
2021 Price Analysis and Prediction#BNB :
We are here now ($220) –> $350 –> $200 –> $525 –> $350 –> $1050
— Ali ❖ (@alithecrypto) March 5, 2021
Another Twitterati is optimistic about BNB. He might have issued a big disclaimer, but he maintains an upbeat BNB/USD forecast for 2021. In his assessment, the coin is ripe for $1.2k by the end of 2021.
Buy coins at your own risk. Because there is both profit/loss. But if you hold for a few days, everyone will get a good profit.
— JULIUS OMEKA and 159 Others 🇰🇪 (@JmekaOfficial) March 8, 2021
On the other hand, Crypto Rambo is convinced a four-digit BNB is what holders should expect by the end of the year. He was pretty straight forward, picking $1.2k as his target for Dec 2021:
— Crypto Rambo (@cryptojohnrambo) March 4, 2021
Is Binance Coin (BNB) a Good Investment in 2021?
Cryptocurrency exchanges play an essential role in crypto. Here, Binance is a standout. Undoubtedly, the spark of the first two months of 2021 catalyzed investors who want to know the Binance Coin price prediction for 2021.
As of early Mar, the BNB price is up a massive 1554 percent year-to-date. The coin admittedly drew maximum benefits from the crypto boom of 2020. Furthermore, the expansion of its ecosystem, especially the increasing adoption of the Binance Smart Chain (BSC) in DeFi, may fuel the BNB/USD higher as per analysts’ predictions.
From what we have gathered, the BNB price appears undervalued in the first quarter of 2021. There might be room for more upsides towards at least $1k by the end of the year. If this pans out as analysts expect of the BNB/USD price forecast for 2021, BNB holders are in for another moonshot.
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