Binance Coin (BNB)

The Binance Coin (BNB) was started in the middle of summer in 2017. This blockchain-based asset was created as a digital currency to be run on the Ethereum blockchain and then on the Binance network. In order to make it more popular among crypto users, the developer started introducing rebates. Before the starting launch of the project took place, all the coins were pre-mined.

BNB is considered to be one of the best altcoins in terms of resilience. That’s why, it attracts people, who are willing to put their money in more stable crypto assets. Although this token doesn’t perform significant cost surges, it is known for having some curious features to pay attention to.

Binance Coin gained its real popularity after many cryptocurrencies significantly grew. BNB was opened in 2021 at $38, while the closing price exceeded $660. Does it have any chance to become demanded again? Let’s see why yes and why not.

The principles of the BNB concept are explained

Binance Coin isn’t much different from the majority of popular cryptos. Like other altcoins, their price rates depend on the general volatility, hype, supply, and demand. Buyers can hold BNB savings in different wallets of digital exchanges and make transactions in this coin if necessary.

The simplest way to obtain Binance Coin is to buy it via Binance. A BNB Chain is a network, where BNB is operated. The transactions, processed within this ecosystem apply to the BNB (Build and Build) gas token as a fuel.

We might consider that the BNB chain is a combination of the two layers. The first one, the BNB beacon, is where holders of the token can stake and vote, while the BNB Smart Chain executes the functions of a consensus layer. It means it is to deal with the enforcement of the network rules.

Key Events Impacting Binance Coin (BNB) Price

1. Just 67 days after the start over, the token surged $4,900%. It was the period when the token reached its historic maximum, which wasn’t beaten until April 2019. On the 12th of January 2018, the coin price amounted to $25.18.
2. However, the first surge during the first cycle didn’t fix the price of BNB to a relatively stable level. Some 300 days after the price of $25.18 was achieved, Binance Coin fell down to around $4 per token.
3. A new historic price record was achieved in June 2019. After the massive surge of 861%, which had been taking place for around 200 days, Binance Coin ended at $39.59. Similar to the previous cycle, the price went down by around 80% in 265 days after the historical price record was set.
4. 2021 was the most successful year of BNB holders. Over the year, its price surged 1,300%. According to the reports of analysts, this happened because of the Binance Smart Chain growth. Today, this ecosystem is one of the major competitors of Ethereum. Its increasing popularity is partly related to the lower fees.
5. In May 2021, the cryptocurrency market suffered a severe crash. There were multiple reasons why the assets declined. Experts believe that the increasing rumors about Bitcoin are one of the most significant reasons. Institutional investors were reluctant to buy Bitcoin and started dumping it in favor of gold. Elon Musk made his contribution to this as well when he announced that Tesla would stop accepting payments in Bitcoin due to environmental concerns. As a result, the Binance Coin price fell from $600 to $325 in just a month.

Trade Binance Coin with DotBig

If you want to invest in Binance Coin (BNB), the best way to do this is to trade it with the DotBig forex broker. When creating a private account on DotBig, any user can access the extensive selection of crypto assets and try to benefit from their price movements. The total number of crypto-related products available on DotBig.com exceeds 600 trading instruments.

Except for the rich selection of cryptos, DotBig.com offers a diversity of other valuable assets, including stocks, indices, commodities, ETFs, and more. With such a range of tradable products, it’s easy to create a well-diversified investment portfolio.

Join the DotBig forex broker and gain the possibility to quickly exchange cryptos on currencies and transfer them to your account. Use additional bonuses, educational material, trading signals, and a demo account to become a more experienced crypto investor.

Pros of Investing in Binance Coin

• BNB might be applied outside the Binance blockchain ecosystem, which makes it one of the best utility tokens in 2022.
• The burndown of tokens may lead to the cryptocurrency’s price increasing. Binance is going to burn tokens until the supply is shortened to 100 million coins. Today, 163 million coins are being supplied.
• Users of the Binance exchange invest in BNB because it is a way to decrease fees.
• The Binance exchange is one of the most popular crypto exchanges in the world. It provides the biggest number of cryptocurrency pairs and the highest liquidity on the market.
• Binance might only increase in popularity thanks to the lowest transaction fees in the crypto exchange industry. Plus, the above-mentioned discounts will increase the demand for Binance Coin (BNB).
• The Binance Smart Chain ecosystem is the biggest competitor to Ethereum. Some experts even dare to say it can beat Ethereum.

The Cons of Investing in Binance Coin

• Binance Coin was created not by an independent team of developers but by a company—Binance Holdings Ltd. The heavy centralization of the coin causes concerns that its price might be manipulated.
• The Binance Exchange has issues with the world’s biggest regulators. It has recently had a lawsuit against the Financial Conduct Authority.

Conclusion

BNB proved to be a resilient cryptocurrency. Financial analysts predict that by the end of the current year, its price will rise up to $566 when today it’s traded at $222. Experts also have a positive forecast for 2023—some of them believe that it will be the time when BNB will reach its all-time maximum. That’s why we consider Binance Coin a worthwhile investment in 2022.

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