BNB is going up while the market is crashing. What are the reasons, and what to expect next? Find out more.
Key Points:
$BNB is up by 3% in 24 hours, while other large-cap cryptos are crashing.
Despite the short-term gains, $BNB has struggled in 2023.
The Binance ecosystem continues to develop despite the bear market.
Binance Coin ($BNB) is one of the few leading cryptocurrencies that has posted gains in the past 24 hours. $BNB is up 3%, while the rest of the market is deep in the red, with $BTC and $ETH down around 10% in the past week. Let’s find out why the BNB price is up and look at a few BNB price predictions.
What Is BNB Coin?
Binance Coin ($BNB) is a top 10 cryptocurrency that functions as a multi-utility layer-1 token on the BNB blockchain. $BNB serves a multitude of functions on the Binance exchange, such as providing holders with trading benefits, paying fees, and interacting with dApps and DeFi protocols.
Boasting a market capitalisation of over $33 billion shows that $BNB has gained widespread adoption outside the Binance ecosystem. Since its launch in 2017, $BNB has become one of the most traded cryptos, thanks partly to the dominance of Binance.
BNB has a maximum supply of 200 million; however, a burn mechanism means that millions of $BNB are removed from circulation every quarter. At the peak of the bull market in 2021, BNB had a market capitalisation of over $100 billion, and it traded hands for $684. The 2022 bear market hit $BNB hard, and it now trades at $215, a 68% discount on its all-time high.
Why Is BNB Price Rising?
If you take a look at the top 100 cryptos over the past 24 hours, you’ll find very little green on the charts. Binance Coin has gained over 3% while the rest of the market has been bleeding out. Earlier in the week, $BNB dropped to $205, and many traders were convinced that the next stop would be below $200. The $200 mark appears to be an important psychological barrier, and at least for now, $BNB has stopped the bears from dragging it below this level.
Despite the positive short-term price action zooming out on the BNB chart paints a more dreary image. In the past month, $BNB is down over 10% and over 25% in the past 12 months. Arguably $BNB has lagged behind in terms of YTD returns with -12% compared to the 37% and 55% posted by $ETH and $BTC.
Why Is BNB Coin Up?
Even with the 24-hour BNB rally, the token has been the centre of some mixed news stories. But even with all the FUD spreading on social media, the Binance ecosystem has continued to grow, and CZ has reassured the market about Binance’s $BNB holdings.
$BNB Hits 2023 Low
Yesterday, August 22nd, $BNB dropped to $205, marking its lowest price in 2023. The drop came amidst a wider market sell-off that saw $BTC drop well below $26k and $ETH drop under $1.6k. As the $200 barrier came into view, there was plenty of Twitter FUD being spread claiming $BNB was heading much lower in the short term.
New Projects on BNB Despite Bear Market
Even with the bear market and the $BNB’s long-term struggles, the Binance ecosystem continues to grow. A recent report from the Binance blog announced that sever DeFi, Social and gaming dApps have been launched on the BNB chain this month.
CZ Assures Market Binance Isn’t Selling $BNB
As the price of $BNB has been caught up in the bear market, plenty of Tweets have been fired at CZ, the Binance CEO, suggesting the exchange has been selling the crypto. CZ has repeatedly posted on Twitter to reassure people that Binance isn’t selling $BNB.
BNB Price Prediction
Even with BNB falling behind other large-cap cryptos in the past six months, the price predictions are overwhelmingly bullish in the long term. They cite technical analysis and BNB’s central role in the world’s biggest centralised crypto exchange.
Coincodex has issued a very bullish BNB price prediction. According to their analysts, BNB will rebound from its current yearly low and potentially move above $300 in the next few days. For 2025 they’ve set a low price target of over $500, suggesting a 2X, and their maximum price target implies a potential new all-time high.
AMBCrypto is more cautious than Coincodex but still expects $BNB’s price to rise this month. They have an average price target of $360 for the final month of 2023 and a maximum price target of just under $400. In the long term, they forecast a new all-time high either in 2025 or 2026.
Techopedia is bearish on $BNB in 2023, with an average price target of $170 and a maximum target of $220. However, their long-term forecast turns bullish with a $465 average price target for 2025.
Conclusion
It’s been a tough year so far for BNB. While other major cryptos have posted double-digit YTD gains, $BNB is still 10% in the red. However, in the past 24 hours, $BNB has bucked the general trend and posted decent gains. The price predictions suggest that in the short term, there’s plenty of volatility to come, but in the long term, $BNB could post solid returns.
