Cryptocurrencies are famous for their wildly volatile nature, which makes it hard to predict the outcome of an afferent investment. Nevertheless, Binance Coin (BNB), the crypto deployed on Ethereum before finally relocating to Binance, has broken the mold with its silent but steady performance. Binance Coin remains a pillar of the online cryptocurrency platform's ecosystem and blockchain, acting as native crypto for numerous other decentralized ledgers out there.
Although BNB has secured its spot among the most significant five cryptocurrencies by market capitalization, standing at over $88BN and boasting a daily trading volume of almost $2BN, the asset hardly ever makes the headlines. With a circulating supply of over 147M out of the maximum limit of 200.00M BNB coins that will ever be launched, the tokens moving around within the ecosystem could see rising demand down the road.
BNB ranks among the most preferred cryptocurrencies among long-term holders, meaning that getting hands on some is both a powerful and risky move. Now, the question is whether it's a worthy enough asset to store some wealth into it and forget about it for years. Could the current BNB prediction prophesy some price appreciations so high that they'll shield your savings from inflation or make a profit?
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BNB's historical price performance
Binance Coin started humbly at the affordable price of 15 cents during its initial coin offering seven years ago, when the backing crypto exchange platform organized the fund-raising. Binance gave a hundred BNB coins for sale, but you can also come across ICOs that offer other cryptocurrencies for investment instead of a company's.
The ICO helped the team gross around $15MN in Bitcoin and Ethereum at the prices registered during those times, which was close to the original target initially established but not exactly there. A month into the event, the asset's value fell to an all-time low of $0.09. Moving on, the asset's price slowly but steadily rose, seeing its price points fall within the range of $15 and $40. The asset's fortunes started to increase the moment the whole crypto market exploded in 2021. During the height of the pandemic, Binance Coin reached a staggering record of $690 and established itself as a huge participant in the crypto industry.
BNB has more than doubled in just a year, rising from a little over $240 in 2024 to an astronomical record of over $72K. Those who invested in the asset around those times now rejoice over profits of more than 100%, which is a reason why sell-offs have been registered around the time the new ATH was recorded. Profit-wise, more investors kept holding onto their BNB holdings in anticipation of even higher profits. At the same time, another chunk of crypto owners strategically rebalanced their portfolio by eliminating or adding BNB.
Binance Coin's resilience has been highlighted multiple times
Following its ascendancy, Binance Coin's price was unstable as the broader cryptocurrency industry grappled with the aftermath of the failure of some of the largest banks and cryptocurrencies. The FTX crisis and the Terra Luna collapse were some of the most significant factors driving BNB's value as low as $205 in the second half of 2023.
These challenges brought BNB's resilience to market sell-offs to the surface, as it tended to bounce back after price drops. Crypto rarely faces long periods of stagnation, which makes it stand out from the sea of other cryptocurrencies that plateau for long periods after considerable declines. What is more, the asset's potency was emphasized in 2024 after the SEC greenlighted 11 Bitcoin spot ETFs, and their trade took off. The milestone triggered a frenzy that pushed Bitcoin's price to the new ATH of over $73K and trickled down to Binance Coin, pushing it above $580.
BNB is generally inclined to growth
Numerous crypto analysts have debated investments in Binance Coin this year. Momentarily, the asset has demonstrated its potential through the late price appreciations that brought it shy of its 2021 summit. Despite an overall tendency to vary, the predictions for the asset this year are mainly bright and indicative of an increase.
Some speculate that it will be in the price range of $502 to $739 for the fifth month of the year, while others envision it somewhere between $925 and $1,100 for the year. Despite possible retracement caused by extreme market volatility, the Relative Strength Index, which calculates the speed at which prices change, indicates that the asset is overbought. This means that the market could correct the price sooner or later.
On the flip side, Binance ventured again into the Indian market after a long period of inactivity, as well as in other international markets. This spells good news for Binance Coin, setting it up for midterm recovery and reassuring investors that holding it long-term is the prudent way to go.
The fourth position in the market capitalization top is secured against rising competition, as the Binance Coin proved when projects like Solana climbed substantially in value. The asset's supporting community has conserved its bullishness, helping improve BNB's trading volume and liquidity.
The largest web3 platform sustains BNB's growth
As mentioned, the fact that the online crypto exchange Binance fuels Binance Coin's utility is a relieving reality for those intending to keep the asset for an extended period of time. The network has exploded over the last years and reached a massive user base of over 200MN global registered accounts. The platform has over $5BN in total value locked, a sum similar to that poured into stablecoins' market cap.
The Binance platform remains the biggest Web3 company to date, making BNB a dangerous contender for the rest of the cryptocurrencies considered suitable long-term investments.
Endnote
As you can see, the fourth biggest cryptocurrency per market capitalization has proven its resilience in the face of market downturns, strengthening investors' belief in its capacity to perform well in the long term. Whether you're a newcomer or an old stager, remember that the market's volatility should not be treated lightly.
