Crypto trader, analyst and enthusiastic blogger takes a look at what hides behind the scenes of Binance Coin’s recent growth, sharing what is expected for the 7th highest ranked coin in the future.
Binance Coin (BNB) remains one of the few coins with an impressive run in the last three months, having doubled its trading value from $16 on 12 April 2019 to a current price of $32. This impressive performance has made the digital asset the 7th highest ranked coin in the world ahead of some big guns such as Tron (TRX), Cardano (ADA), and Stellar Lumen (XLM). Brief research conducted reveals that Binance Coin did not attain this feat by fluke, but by a tremendous work by the team behind the scene.
Possible Reasons for the Price Surge
The sudden increase in price and the significant improvement of the Binance Coin in the CoinMarketCap rankings can be attributed to a number of reasons including the many partnership agreements undertaken in recent months. Binance recently partnered with one of the most famous cryptocurrency ATM companies in the U.S., Coinflip, to extend the reach of the digital asset to many users.
With many people having concerns about their privacy and many other cryptocurrency users not ready to go through the complex process of depositing their assets on an exchange, Coinflip provides the ground for them to do this in simple steps, and this has made them a choice for the larger cryptocurrency populace. The partnership of the Binance Coin with Coinflip has exposed the asset to a larger audience with the high demand reflecting on its recent price.
Another major reason behind the positive performance of the Binance Coin is the coinburn event. The Binance team has decided to burn 50% of the total supply of its coin equivalent to 100 million BNB. As at the 1st quarter of 2019, they had completed the 7th round of the coinburn, having removed a total of 11 million BNB ($146 million) from circulation.
Interestingly, the Binance Coin in the 1st quarter of the year surged in price a few weeks before Bitcoin experienced its bull run, and this makes it the first in history. Burning a portion of the coin supply increases the rate at which the digital asset responds to change.
This is one of the primary reasons for the increase in the market cap and the price of the BNB. Binance has also teamed up with multiple companies including EQUAL, a cryptocurrency-blockchain startup to offer the services of BNB on its wallet. With the many deals engaged and dozens of them in the pipeline, Binance Coin is expected to break into the top five highest ranked coin in the future.
The Way Forward and Future Price Prediction of Binance Coin
The way forward for the BNB is a positive one. The cryptocurrency is expected to pull another bull run sooner or later with recent partnerships and upcoming events being the catalyst. It was recently announced that the company has teamed up with Cred to offer cryptocurrency borrowing and lending services. As part of the agreement, Cred will migrate a portion of its ERC-20 LBA token to the Binance Chain in a bid to ensure effortless, fast and secured transactions for cred users.
Cred offers two services: lending services which ensure that users borrow fiat currencies with cryptocurrency as collateral, and also offers interest (earn) on deposited cryptocurrencies. This partnership will boost the demand for Binance coin and later cause its price to surge even higher. It is worth noting that a total of 50,000 BNB was offered as a giveaway package as part of its possible plan of ensuring equitable distribution of circulating coins to avoid price manipulation by cryptocurrency whales.
Binance coin is expected to surge in price according to a number of experts’ price prediction including Tradingbeast. According to Tradingbeast, the price of BNB will possibly rise by at least 300% by the end of 2021. This will see the digital asset trading at a minimum price of $132. By 2022, BNB has been predicted to trade at a minimum price of $269. Looking at the rate of BNB price change, it is likely that the price will hit the predicted prices before the said date.
In addition, predicting the price of BNB based on its price history in the last six months makes a strong case for a future price surge. Binance coin was trading at a little over $6 in January 2019 but took a massive jump to multiply its trading price by 500% to trade a little over $30 in July 2019. This run is linked to the reasons explained above. If the effect of the recent partnership deals continues, Binance coin will double in value to trade at least $60 by the end of the year.
Michael Kuchar comes from Czechia and is a cryptocurrency trader, analytic and enthusiastic blogger. His most current passion is learning how decentralized applications work and how they can affect our everyday life.