Although volatility is a trait that helped digital currencies climb to the peaks where they are now and fuel an industry worth $2.54TN, growing the “Build and Build” coin, shortened BNB, broke the mold with its progress. Once used under the “Binance Coin” terminology, the Binance platform that backs the crypto up revolves around it, relying on it to help users unlock different bonuses on the exchange. Moreover, it serves as a native cryptocurrency for numerous decentralized ledgers within the sector.
It has managed to rank among the top five cryptocurrencies by market capitalization, being only outshined by three tokens. The leader, Bitcoin, whose market cap sways at $1,310BN at the moment of writing, is unshakeable in its position. The second-best crypto, Ethereum, ranks second on the list with a market cap of $417.12BN, followed by USDT with a market cap of $114.36B.
The market cap of the fourth largest one in the listicle, BNB, stands at the time of writing at over $85BN, and looking into the BNB price prediction 2030, it’s safe to say that it’s difficult to be surpassed. However, given the harsh competition between cryptocurrencies, the fluctuations in market sentiment, and the unstable financial and political stage, among other factors, are forecasts enough to ensure BNB’s spot is locked up? Or would it be wiser to look into other reasons that fuel the asset’s prominence, like the ones below?
Utility on a prominent exchange
Binance, the company responsible for creating BNB, supports dozens of cryptocurrencies, from the top-performing ones like AVA, ADA, and DOGE to the smaller-cap ones like STRAX and CTSI. Nevertheless, Binance’s blockchain’s native token, BNB, is mostly used to pay for trading on the platform. Binance Coin can be instantly bought through several ways, including debit or credit card, bank transfer, and Google or Apple Pay.
The platform decreased the minimum order payment amount to buy to 10 USD so everyone can easily access the trading experience. Now, you can buy BNB worth as little as 10$ from your digital wallet in a few simple steps. You choose the BNB/USD pair from the dropdown menu and confirm that your payment is linked to your mobile app.
To get a feel for conducting trades on the platform, you can go a bit higher and spend $50, after which you can trade it against other cryptos. Otherwise, you can let it lie dormant in your wallet. For instance, you may keep it in the “cold storage” option offered by the exchange without stressing over engaging in trading but letting it rest as if you used a piggy bank. You’re provided your own wallet when you set up your account, reducing the steps you must take to have your necessary tools within reach.
Diversification benefits
“Never put all your eggs in one basket” makes a lot of sense in the investment realm if you consider how much unpredictability your wallet witnesses, especially if we talk about crypto. Cryptocurrencies are reputed for their volatile nature, and out of all twelve digital currencies out there, a few stand out owing to their instability.
Stablecoins like Tether and USD Coin are tied to fiat currencies, so their parcourse is less bumpy compared to cryptos that are unbacked by money issued by governments. However, it’s fair to say that for many investors, the specific type of cryptocurrency they buy is of little concern. The majority of successful investors make profits by diversifying their portfolios so that an inevitable price drop of an asset can be amortized with another one that’s on the rise.
BNB has risen to become the fourth cryptocurrency by market capital among thousands of partakers. It was launched in July 2017 when it was offered in an initial coin offering (ICO) to raise capital, having been distributed among numerous contributors like those from Binance’s founding crew and angel investors. One hundred coins were spread and bought during the crowd sale, raising a whopping $15MN. Since then, the asset has witnessed massive growth, climbing from an initial price of $0.15 per token to the maximum of $717.48 on the 6th of June this year.
BNB’s price performance over seven years
BNB experienced an impressive expansion in spite of the market downturns it experienced, which took its toll on other cryptocurrencies. In its developmental years, the asset’s pricing point revolved within the range of $20$-40$. Nevertheless, 2021 saw the cryptocurrency’s destiny change forever, as it exploded and reached an all-time high of $690 during the pandemic’s peak when the market went wild over cryptos.
After reaching its zenith, the asset witnessed some instability as the whole crypto market struggled with the aftermaths of some major bank and crypto collapses. The downfalls of FTX and Terra Luna took their toll on the whole crypto market, followed by another series of detrimental news reports that pushed BNB down.
Fast-forward to 2024, and BNB’s strengths were later emphasized when 11 BTC spot ETFs received the green light from the U.S. Securities and Exchange Commission (SEC). The favorable and well-awaited event didn’t just drive Bitcoin up but also helped BNB sell for more than $580 per coin, just shy of the $690 level reached in 2021.
A unique burning system
BNB is integral to the exchange’s ecosystem and is used in numerous activities, including participating in token sales on the Launchpad or getting discounts for trading. Originally developed as a utility coin for discounts for the platform’s traders, this token has expanded to more applications, like payments for online services, entertainment, travel bookings, and financial services.
The cryptocurrency uses a unique burning apparatus. The platform dedicates a fifth of its quarterly profits to buying back and burning the tokens. This is done in an attempt to improve the asset’s scarcity and help maintain or increase cryptocurrencies’ value as a consequence of the slashed supply.
Despite the turbulence witnessed by the crypto market, BNB has proven to remain strong, behaving well through market sell-offs. Not only have investors stuck with it, but it has also managed to bounce back and experience very few lengthy intervals of sluggishness.
