Binance Coin Price Prediction:28 December 2021

Overview

Have you ever come across Binance Exchange? If yes, then you may be familiar with Binance Coin (BNB) cryptocurrency. It’s the native token of the exchange which was created primarily to pay the transaction fees. BNB, which was initially launched as an ERC-20 token built on Ethereum, was later migrated to its native blockchain, Binance Smart Chain(BSC), a decentralized platform. 

BNB crypto remained relatively silent since its inception in 2018 and traded below $10 for quite a long time. However, during the 2021 bull rally, the BNB price showcased a monstrous rally with a huge surge from levels around $30 to as high as $691 within a very short period. Despite a massive sell-off, yet the asset remained relatively bullish as it revisited the levels above $650 before the current consolidation. 

Will BNB price resume with the bull run? If yes, what levels may the asset reach by the EOY? Let’s check it out below!

Understanding Binance Coin-In Brief

Binance coin was launched in 2017 through an Initial Coin Offering(ICO) with an upper limit of 200 million BNB tokens. Nearly 10% or 20 million BNB was kept reserved for Angel Investors, 40% or 80 million for the founding team, and the remaining 50% or 100 million for the ICO participants. The funds generated through the ICO were utilized for Binance branding & marketing, the development of the Binance platform, and performing necessary upgrades. 

The utility token of the Binance exchange is well-known for conducting quarterly burns, meaning Binance uses 20% of its profits to buy back BNB and destroys it completely. The platform intends to continue to burn until 50% of the total supply, i.e. 100 million tokens are destroyed. The BinanceCoin is expected to boost the Binance exchange operation and its ecosystem. While the BNB token could become more scarce and valuable in the upcoming future.

How Does Binance Coin(BNB) Work?

Binance coin was initially created to work as a utility token for Binance Exchange, but as it expanded its use cases, BNB now stands the top 3rd cryptocurrency asset as per the market cap. The BinanceCoin after migration on the Binance Smart chain operates using a Proof-of-Authority consensus mechanism. 

Proof-of-Authority, first proposed by Ethereum co-founder CTO Gavin Wood is a modified form of Proof-of-Stake where instead of staking the tokens, the value of the validator, his/her monetary value is staked. It requires the approved accounts called the Validators to validate the transactions and blocks. The validators automate the process by running software that eliminates constant monitoring of the computer or Nodes.   

All the 200 million BNB tokens were released during the ICO and hence the entire process of mining and rewards is eliminated. Just the validators are required to validate the transactions and earn rewards.

Will Binance Coin(BNB)/USDT Hit $1000 in 2021?

Binance coin since its launch maintained a very low-key trend. The asset since its inception traded below $20 which shot up to $30 until the end of 2020. Yet the beginning of 2021 kickstarted the bull run which shot up the price as high as $691.8 within 4 months. However, the May crash halved the price and slashed close to $200 levels. 

Further, the asset gained extreme bullish momentum within no time and began with a recovery phase. Amid the positive market sentiments that prevailed in November, the asset yet again ranged above $660 but failed to form a new ATH. Currently, the BNB price is hovering around $545 and with only a few days left, it may be extremely difficult for the price to hit $1000. With an extended bull run, the asset may eventually close the yearly trade above $600. 

Additional Read: Binance Coin Technical Analysis 

Factors Affecting Binance Coin(BNB) Price Today

Transaction fees on the Exchange

Binance is the most popular exchange in the world with a huge user base. And hence paying fees using BNB may offer some discounts on spot trading fees, margin trading fees, and future trading fees.

Quarterly Burn 

As all BNB tokens are pre-mined, the Binance platform adopted the burn mechanism to maintain the scarcity and increase the value. The amount of BNB to be burnt is based on the exchange’s overall trading volume. The burning of tokens is said to be continued until half of the total supply of 100 million tokens are destroyed completely.

Other Use-cases of BNB

The BNB token other than being a utility token and a good asset to trade can be used for making payments through ETHLend, Moeda, etc. It can also be used to fund your travel on TravelbyBit or Travala.com. Similarly, BNB has many use cases in the field of Entertainment, service, and Finance. 

Technicals

No doubt the BNB price appears to be pretty bearish in the short term, yet in the long term, the asset is extremely bullish. The RSI after hovering within the middle bands is attempting to make a bullish divergence and MACD showcases the buying volume slowly mounting on the platform.

Where & How to buy BinanceCoin(BNB)

Binance coin is the 3rd-largest crypto in the market which also offers many other use cases other than trading or financing. It quickly gained immense popularity among the users and is available for trade on almost all the exchanges in the world. BNB is also available for trade on CoinDCX, but what makes CoinDCX unique among all others is the ease of use and comparative fees. 

Moreover, the CoinDCX app offers a wide range of crypto assets including Bitcoin, Ethereum, Binance coin, etc, and many more. Just download the mobile app on your smartphone and register for free using your details and bank account details. And importantly do not forget to complete your KYC. 

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