The prices of most major cryptocurrencies in the market soared due to the market-wide bull run in 2021. Even though the media was mostly focused on the performance of Bitcoin (BTC), the world’s leading cryptocurrency, one of the most exciting developments were seen in Binance Coin (BNB). Since the launch of this coin, it has managed to generate a return on investment (ROI) of 461,398.48%, which is one of the highest ROIs in the crypto market. Moreover, BNB has also exhibited an impressive market takeover, as it elbowed past most of its competition to claim the spot of the world’s third-largest cryptocurrency.
It had been the 10th largest crypto back in December 2020, which meant that Binance Coin has outstripped some of the popular and big names, like Ripple (XRP), Tether (USDT) and Cardano (ADA) for claiming this spot. As a matter of fact, the recent price predictions indicate that Binance Coin could actually end up reaching a value of $1,961.24 at the end of 2022 and by 2023, its value could reach $1,582.330. By the end of 2025, Binance Coin’s value could reach an impressive $8,363.25. At the end of 2030, the crypto is expected to be valued at $23,558.46.
However, in order to understand the cryptocurrency, you first have to know its background. You can check out the numerous cryptocurrency guides that exist about Binance Coin, which has been issued by the popular and well-known crypto exchange, Binance. It is the world’s biggest crypto exchange by a significant margin and is a portmanteau of ‘binary’ and ‘finance’. Some of the exchange’s success is because of its in-house matching mechanism that is able to match users who are interested in buying and selling the same crypto simultaneously. Users are given the option of choosing BNB for making payments and also receive discounts for it.
Initially, these discounts had only ben valid for the first four years of BNB and halved each year. This meant 50% in the first year, 25% in the 2nd, 12.5% in the third and 6.25% in the fourth year, which would have been 2021. However, the exchange had changed its mind back in 2019 and decided to offer a 25% discount to the users indefinitely. Binance Coin’s primary purpose is to pay the trading fee, but it can also be spent in a number of physical as well as online stores all over the globe. Investing in Initial Coin Offerings (ICOs) is another purpose that Binance Coin (BNB) can serve.
Furthermore, it also remains one of the prominent exchange tokens on the Binance exchange. As fiat currencies are not supported on the Binance platform, users can only do trading between different cryptocurrencies. This is where BNB comes in handy because it remains a consistent in-house asset that investors can trade and hold easily, if they are not interested in buying a digital currency. Nonetheless, the biggest use the Binance Coin (BNB) has served more recently is as the fuel for the Binance Smart Chain (BSC). This is a parallel chain for dApps and smart contracts.
Even though it had been introduced back in September 2020, it hadn’t gained popularity until February 2021 when there was a spike in Ethereum’s gas fees. People had turned to the BSC as a cheaper substitute. Today, it has become the second-largest decentralized finance chain after Ethereum. The latest crypto price analysis indicates that Binance Coin could experience a price increase of 87.61% in 2022 alone. Most experts are bullish on the crypto’s prospects and believe that it will reach new highs in the beginning of the year.
A number of market experts are optimistic that BNB would be able to cross its all-time high value of $690.93 in 2022 and could reach an average price of $1,014.130. This would mean that it would move past the $1,000 threshold for the first time, which would be a major milestone for it.