(Updated July 17, 2021) Binance coin had a spectacular year in 2019, even though its growth did slow down in the second half of the year. Buoyed by the launch of several IEOs through the Binance launchpad, BNB price managed to outperform BTC by the end of the year achieving gains of over 150%. Remember this token at some point in 2019 managed to register gains of over 600%.
Key to the success of BNB price has been how Binance exchange has masterfully managed to engineer the token to become an all-encompassing aspect of every facet of its ever-growing ecosystem. So far, it’s being used to purchase tokens for various IEOs, BEP2 transaction fees, DEX listing fees, and BEP2 token migrations.
This increased utility means BNB price will continue to perform well throughout 2020.
In this piece, we are going to take a look at expert opinions and technical analysis, which suggest that BNB price is set for good times in 2020.
Experts’ Opinion On Why BNB Price Will Rise
Tomaino, a former Coinbase employee, believes that there is a bullish case for BNB token. He argues that this will remain to be the case of Binance maintains its dominance in the cryptocurrency exchange industry. This is contingent on Binance evolving with improvements in decentralized exchange services. This will see the coin’s price surge.
According to a leading crypto publication, Binance platform has successfully launched several projects, such as the BitTorrent token (BTT) and Fetch.AI (FET) token, and it is also planning to revive initial coin offerings by generating quality tokens with strong user cases, which will encourage massive participation. Such developments will increase BNB’s adoption, and boost its price.
Messari reported that the ROI for BNB price over the last one year was 154%. However, in the last six months, the ROI increased to 560%. Part of the reason is the platform’s strategy of frequently ‘burning’ BNB to constrict supply. As a proven strategy, this shows that the coin’s price will rise.
Additionally, WalleInvestor.com believes that Binance Coin is a profitable investment option. According to the site’s long-term forecasts, an increase is expected. The price prognosis for 2024-06-22 is $71.763. With a 5-year investment, the ROI is expected to be +93%. This prediction is based on previous and current developments on Binance platform, and its future plans.
Other factors that promise to push BNB price even higher.
BNB Is Fast Becoming The Next ICO Token
The rise to prominence of the IEO fundraising model has played a crucial role in the growth of BNB price. Binance kept their promise of supporting at least one project every month through its launchpad.
By the end of the year, the exchange had held IEOs for eleven different projects, including; BitTorrent, Fetch.AI, Celer, Matic, Harmony, Elrond, WINk, Perlin, Band, Kava, and Troy.
The Launchpad allows projects to issue their tokens on the Binance Chain, which offers a simple and less error-prone platform compared to writing smart contract code.
It also provides the projects with a chance to get their tokens listed on the Binance DEX by being voted by the community.
To participate, one needs to have BNB, and this explains why we saw the token increase in value in 2019. With more IEOs scheduled to be launched this year, we can expect to see the price of BNB continue to appreciate. At the time of writing, Binance Coin is among the top 10 cryptocurrencies in the world thanks to the plans implemented by the company over the last few years.
Binance Coin for Decentralized Finance
Binance Coin (BNB) has been in a bull market for several months since it reached a bottom in December 2018. The virtual currency was able to reach massively high prices surpassing $600 in April 2021.
One of the reasons related to this price increase and interest from people on BNB Price could be related to the Decentralized Finance industry. Several projects are now working on top of the Binance Smart Chain (BSC) which is now one of the most efficient blockchain networks in the market.
The entire crypto market is now experiencing a massive expansion thanks to the DeFi market. Swapping platforms and farming protocols became very popular for small investors that want to earn high rewards on their coins.
While in the beginning, Ethereum was the network in charge of handling the largest DeFi volume, Binance offered a large advantage to smaller and retail investors: an easy to use, cheap and fast platform compared to Ethereum.
What is Decentralized Finance?
Decentralized finance, also known as DeFi, is an industry inside the crypto market that offers financial services that do not depend on a centralized authority. These solutions are focused on staking, farming, liquidity provision, swapping, lending and borrowing.
Everything is done and performed through smart contracts and platforms that interact with your crypto wallet such as MetaMask. BNB price has been growing thanks to the fact that a large number of projects have been released on top of the Binance Smart Chain platform.
These projects are powered by proprietary tokens and the BNB digital asset. As there has been a larger number of individuals investing in these DeFi solutions BNB price experienced stronger buying pressure from different sectors of the crypto market.
The entire Binance ecosystem is now being built around DeFi and the Binance Smart Chain that continues expanding and growing. If DeFi projects such as PancakeSwap, Venus or ApeSwap continue expanding, it might be possible for BNB to eventually surpass Ethereum.
Top DeFi Projects on Top of the Binance Smart Chain
There are several projects that are now running on top of the Binance Smart Chain. Some of these projects include the following.
ApeSwap is a cryptocurrency and DeFi project that has been released on the Binance Smart Chain. This Decentralized Exchange (DEX) offers users with a wide range of solutions such as liquidity pools, token farming and even an Initial Coin Offering (ICO) platform called Initial Ape Offering (IAO).
By using the BANANA and GNANA tokens and leveraging the speed and reliability of the Binance Smart Chain, ApeSwap is becoming one of the fastest-growing projects on Binance.
Pancake Swap is perhaps the most popular DeFi project that is powered by Binance Coin and the CAKE digital asset. Pancake Swap is very similar to ApeSwap and was a pioneer running on the Binance Smart Chain.
Users can exchange their tokens (BEP-20) using this platform and enjoy a wide range of liquidity pools, farms and more. The CAKE token is now among the largest in the world and it is also helping to increase BNB price through its different farms.
Venus is a DeFi project that has developed the first decentralized stablecoin on the Binance Smart Chain. Users that hold the VAI digital asset are able to get attractive lending rewards. Users can easily earn interest on their digital assets such as Tether (USDT), Binance USD (BUSD) and USD Coin (USDC).
These are just some of the different projects that have been released on top of the Binance Smart Chain, but there are many others that are now being developed and that could become even larger in the coming months and years. All these things are certainly going to have a very positive impact on BNB price. Thus, as an investor, it is very important to follow the trend that has started in the DeFi market on top of the Binance Smart Chain.
You Can Now Purchase Real Estate Using BNB
On October 10, 2018, Propy, a real estate firm that accepts payments in cryptocurrencies announced that it would take BNB for property purchases. The announcement was made via Twitter, and it had Changpeng Zhao the CEO of Binance excited:
“Propy will accept BNB for home buying! @Binance Chain is coming and $BNB, which is a great store of value today, will turn into programmable money. For the rapidly growing BNB community, we make it possible to invest in real estate with easy paperwork at Propy.”
Propy is a global real estate marketplace that has a decentralized title registry. By adding BNB as a payment option, the team behind the company aims to resolve issues that hamper international real estate transactions.
Also, they aim to create a unified property store and asset transfer platform for the global real estate industry.
Propy uses smart contracts to connect buyers, sellers, brokers, and escrow/title agents/notaries.
This move is significant for Binance Coin because as more people opt to pay for their property using BNB expect its price to rise higher.
Pay For Your Flight Using BNB
Recently Binance teamed up with TravelBit an Australian company to create a point of sale (POS) in airports both locally and internationally. The partnership saw Binance invest $2.5 million in the startup. So far, the company has managed to launch a payment system in Brisbane airport.
With the money invested by Binance, TravelBit intends to set up cryptocurrency payment terminals in other major airports around the world. It’s a move that will accelerate crypto mass adoption.
Currently, the new POS terminals accept only the top crypto coins – Bitcoin, Ethereum and Litecoin. And very soon BNB will be added on that list. What could this mean for BNB price? We’ll have to see, but it could be huge, as the travel industry touches billions.
TravelBit describes itself as the world’s first digital currency airport. Together with Binance, both plan to promote blockchain based technologies globally.
On the partnership, Changpeng Zhao said:
“Real usage is the most important factor on the way to cryptocurrencies’ adoption. It’s difficult to imagine a better example of cryptocurrency usage than traveling as right after you land in a foreign country you can find yourself lack of local currency.”
In conclusion, these three instances serve to show the growing acceptance of the Binance Coin. It’s safe to expect this adoption to be reflected on its price very soon.
In more minor news, BNB continues to see investment interest from different strategies used by Binance.com Some of those include:
- Lower transaction fees when it is used as the transacting cryptocurrency on the Binance exchange.
- Various trading competitions which periodically award BNB tokens as prizes. Binance’s Twitter feed has provided some details of the latest Binance competition which will give out 8000 BNB tokens.
- The global expansion of Binance, which has recently opened an African office in Uganda.
Binance Coin (BNB) Price Prediction TradingView Analysis Updated July 17, 2021
For the BNB/USDT trading pair, this expert sees that the price is going forward to seeing the 141.14 level as Bitcoin continues moving downwards. As we see, analysts are always following the trend that Bitcoin has taken in recent weeks. This is because BTC remains the largest cryptocurrency in the world.
As per the expert, the RSI indicator has recently touched the resistance and the reaction has clearly been displayed in the chart. Moreover, he explained that the price is still moving under the EMA. Furthermore, the EMA20 is still under the EMA50.
Currently, BNB is being traded close to 300 USDT per coin and it has a strong support level between 250 and 275 USDT.
The Binance Coin (BNB) failed to close higher and it has corrected by around 10% as shown by the analyst in the chart. This happened after trying to make a new high. BNB has also broken the local trend line and tested a very important resistance level.
The expert explains that if BNB tests the broken trendline again as resistance, then it could be a moment to sell BNB rather than buying more. The closest are where there could be enough liquidity is close to the 270 USDT price level. The local high price for BNB is at 316.5 USDT per coin.
This crypto analyst sees that there is a good buy for the Binance Coin (BNB) token at around $331 per coin. The current support is located at around $320 per coin and we should closely follow this area as BNB could reach this price level in the near future. However, he believes that this dip could be very useful to attract buyers.
Moreover, he shares the pivot support that currently stands at $325 per coin with a medium-term bias that remains neutral. Furthermore, the profit targets shared by the analyst are currently at $378 and $398 per coin. Meanwhile, resistance levels are close to $360, $380 and $400, while support levels are at $345, $320 and $310.
The Binance Coin (BNB) virtual currency could start moving higher according to the analyst. He shows that there has been an inverse head and shoulders pattern that has confirmed above the neckline and that could continue towards the $600 level in the coming weeks.
The BNB virtual currency expansion would definitely be tied to the entire market and how it behaves in the future. At the same time, we see that the neckline could become support if BNB continues moving downwards. There are also some Fibonacci retracement levels that are worth following to understand which are the most important support and resistance level for this virtual currency.
As per the analyst, it is certainly possible to get back in the descending channel and try the upper boundary. However, there are many support and resistance levels along the way. Some of these support and resistance levels include $432, $460, $503 and $538.
He explains that the price is now retesting a breakout and if the restest is completed, we may have a continuation of a fall to the next support zone or at least the previous support zone. It is worth mentioning that the price has also formed a double bottom.
Now BNB is being traded close to $378 and it could move higher or lower depending on the general market.
It’s clear from the above analysis, expert opinions and the general bullish mood within the crypto market that this would be the perfect time to get your hands on some BNB. Especially now that the market has retracted as it prepares for the next rally as we move closer towards the final quarter of the year.